Practice Test: Reading Comprehension - 58 | 100 RCs for GMAT PDF Download

seek federal contracts to provide markets for minority businesses

encourage minority businesses to provide markets for other minority businesses

attempt to maintain a specified rate of growth in the minority business sector

rely on the participation of large corporations to finance minority businesses

select minority businesses on the basis of their location

The maximum term for loans made to recipient businesses was 15 years.

Business loans were considered to be more useful to recipient businesses than was management and technical assistance.

The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.

Recipient businesses were encouraged to relocate to areas more favorable for business development.

The capitalization needs of recipient businesses were assessed and then provided for adequately.

broaden the scope of the discussion to include the legal considerations of funding MESBIC’S through sponsoring companies

call attention to the fact that MESBIC’s must receive adequate funding in order to function effectively

show that sponsoring companies were willing to invest only $500,000 of government-sponsored venture capital in the original MESBIC’s

compare SBA and MESBIC limits on minimum funding

refute suggestions that MESBIC’s have been only marginally successful

defensive

resigned

indifferent

shocked

disapproving

The use of MESBIC’s for aiding minority entrepreneurs seems to have greater potential for success than does the original SBA approach.

There is a crucial difference in point of view between the staff and directors of some MESBIC’s.

After initial problems with management and marketing, minority businesses have begun to expand at a steady rate.

Minority entrepreneurs wishing to form new businesses now have several equally successful federal programs on which to rely.

For the first time since 1960, large corporations are making significant contributions to the development of minority businesses.

The small number of new minority enterprises formed as a result of the program

The small number of minority enterprises that took advantage of the management and technical assistance offered under the program

The small percentage of the nation’s business receipts earned by minority enterprises following the programs, implementation

The small percentage of recipient minority enterprises that were able to repay federally guaranteed loans made under the program

The small number of minority enterprises that chose to participate in the program

I only

III only

I and II only

II and III only

I, II and III

disprove the view that federal efforts to aid minority businesses have been ineffective

explain how federal efforts to aid minority businesses have changed since the 1960’s

establish a direct link between the federal efforts to aid minority businesses made before the 1960’s and those made in the 1980’s

analyze the basis for the belief that job-specific experience is more useful to minority businesses than is general management experience

argue that the “social responsibility approach” to aiding minority businesses is superior to any other approach

What was the average annual amount, in dollars, of minority business receipts before the SBA strategy was implemented?

What locations are considered to be unfavorable for minority businesses?

What is the current success rate for minority businesses that are capitalized by MESBIC’s?

How has the use of federal funding for minority businesses changed since the 1960’s?

How do minority businesses apply to participate in a MESBIC program?