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1. Which of the following best states the central idea of the passage?
(A) The use of MESBIC’s for aiding minority entrepreneurs seems to have greater potential for success than does the original SBA approach.
(B) There is a crucial difference in point of view between the staff and directors of some MESBIC’s.
(C) After initial problems with management and marketing, minority businesses have begun to expand at a steady rate.
(D) Minority entrepreneurs wishing to form new businesses now have several equally successful federal programs on which to rely.
(E) For the first time since 1960, large corporations are making significant contributions to the development of minority businesses.
2. According to the passage, the MESBIC approach differs from the SBA approach in that MESBIC’s
(A) seek federal contracts to provide markets for minority businesses
(B) encourage minority businesses to provide markets for other minority businesses
(C) attempt to maintain a specified rate of growth in the minority business sector
(D) rely on the participation of large corporations to finance minority businesses
(E) select minority businesses on the basis of their location
3. Which of the following does the author cite to support the conclusion that the results of the SBA program were disappointing?
(A) The small number of new minority enterprises formed as a result of the program
(B) The small number of minority enterprises that took advantage of the management and technical assistance offiered under the program
(C) The small percentage of the nation’s business receipts earned by minority enterprises following the programs, implementation.
(D) The small percentage of recipient minority enterprises that were able to repay federally guaranteed loans made under the program
(E) The small number of minority enterprises that chose to participate in the program
4. Which of the following statements about the SBA program can be inferred from the passage?
(A) The maximum term for loans made to recipient businesses was 15 years.
(B) Business loans were considered to be more useful to recipient businesses than was management and technical assistance.
(C) The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.
(D) Recipient businesses were encouraged to relocate to areas more favorable for business development.
(E) The capitalization needs of recipient businesses were assessed and then provided for adequately.
5. Based on information in the passage, which of the following would be indicative of the pragmatism of MESBIC staff members?
Ⅰ.A reluctance to invest in minority businesses that show marginal expectations of return on the investments
Ⅱ. A desire to invest in minority businesses that produce goods and services likely to be of use to the sponsoring company
Ⅲ. A belief that the minority business sector is best served by investing primarily in newly established businesses
(A)Ⅰonly
(B) Ⅲ only
(C)Ⅰand Ⅱ only
(D)Ⅱ and Ⅲ only
(E)Ⅰ,Ⅱ and Ⅲ
6. The author refers to the “financial and operating problems”(line 38 ) encountered by MESBIC’s primarily in order to
(A) broaden the scope of the discussion to include the legal considerations of funding MESBIC’S through sponsoring companies
(B) call attention to the fact that MESBIC’s must receive adequate funding in order to function effectively
(C) show that sponsoring companies were willing to invest only $500,000 of government-sponsored venture capital in the original MESBIC’s
(D) compare SBA and MESBIC limits on minimum funding
(E) refute suggestions that MESBIC’s have been only marginally successful
7. The author’s primary objective in the passage is to
(A) disprove the view that federal efforts to aid minority businesses have been ineffective
(B) explain how federal efforts to aid minority businesses have changed since the 1960’s
(C) establish a direct link between the federal efforts to aid minority businesses made before the 1960’s and those made in the 1980’s
(D) analyze the basis for the belief that job-specific experience is more useful to minority businesses than is general management experience
(E) argue that the “social responsibility approach” to aiding minority businesses is superior to any other approach
8. It can be inferred from the passage that the attitude of some MESBIC staff members toward the investments preferred by some MESBIC directors can best be described as
(A) defensive
(B) resigned
(C) indifferent
(D) shocked
(E) disapproving
9. The passage provides information that would answer which of the following questions?
(A) What was the average annual amount, in dollars, of minority business receipts before the SBA strategy was implemented?
(B) What locations are considered to be unfavorable for minority businesses?
(C) What is the current success rate for minority businesses that are capitalized by MESBIC’s?
(D) How has the use of federal funding for minority businesses changed since the 1960’s?
(E) How do minority businesses apply to participate in a MESBIC program?
Correct Answers:ADCCCBBED
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