READING COMPREHENSION Ex. 3

Which of the following best states the central idea of the passage?

• 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.

According to the passage, the MESBIC approach differs from the SBA approach in that MESBIC’s

• seek federal contracts to provide markets for minority businesses

• rely on the participation of large corporations to finance 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

Which of the following does the author cite to support the conclusion that the results of the

SBA programs were disappointing?

• 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

Which of the following statements about the SBA program can be inferred from the passage?

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

  resulted.

• 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.

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

The author’s primary objective in the passage is to

• 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