Practice Test: Reading Comprehension - 51 | 100 RCs for GMAT PDF Download

What federal agencies have set percentage goals for the use of minority-owned businesses in public works contracts?

To which government agencies must businesses awarded federal contracts report their efforts to find minority subcontractors?

How widespread is the use of minority-owned concerns as “fronts” by White backers seeking to obtain subcontracts?

How many more minority-owned businesses were there in 1977 than in 1972?

What is one set of conditions under which a small business might find itself financially overextended?

experience frustration but not serious financial harm

face potentially crippling fixed expenses

have to record its efforts on forms filed with the government

increase its spending with minority subcontractors

revise its procedure for making bids for federal contracts and subcontracts

more popular with large corporations

more specific

less controversial

less expensive to enforce

easier to comply with

Annoyed by the proliferation of “front” organizations, corporations are likely to reduce their efforts to work with minority-owned subcontractors in the near future.

Although corporations showed considerable interest in working with minority businesses in the 1970’s, their aversion to government paperwork made them reluctant to pursue many government contracts.

The significant response of corporations in the 1970’s is likely to be sustained and conceivably be increased throughout the 1980’s.

Although corporations are eager to cooperate with minority-owned businesses, a shortage of capital in the 1970’s made substantial response impossible.

The enormous corporate response has all but eliminated the dangers of over-expansion that used to plague small minority-owned businesses.

present a commonplace idea and its inaccuracies

describe a situation and its potential drawbacks

propose a temporary solution to a problem

analyze a frequent source of disagreement

explore the implications of a finding

been especially vulnerable to governmental mismanagement of the economy

been denied bank loans at rates comparable to those afforded larger competitors

not had sufficient opportunity to secure business created by large corporations

not been able to advertise in those media that reach large numbers of potential customers

not had adequate representation in the centers of government power

avoid competition with larger, more established concerns by not expanding

concentrate on securing even more business from that corporation

try to expand its customer base to avoid becoming dependent on the corporation

pass on some of the work to be done for the corporation to other minority-owned concerns

use its influence with the corporation to promote subcontracting with other minority concerns

Corporate contracts with minority-owned businesses totaled $2 billion in 1979.

Between 1970 and 1972, corporate contracts with minority-owned businesses declined by 25 percent.

The figures collected in 1977 underrepresented the extent of corporate contracts with minority-owned businesses.

The estimate of corporate spending with minority-owned businesses in 1980 is approximately $10 million too high.

The $1.1 billion represented the same percentage of total corporate spending in 1977 as did $77 million in 1972.