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.
2. According to the passage, the MESBIC approach differ s from the SBA approach in that MESBIC’s
[A] seek federal contracts to provide market 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.
3. 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.
4. The author refers to the ‘financial and operating problems’ 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.
5. It can be inferred from the passage that the attitude of some MESBIC staff member toward the investments preferred by some MESBIC directors can be best described as
[A] disappointing.
[B] Indifferent.
[C] Shocked.
[D] Defensive.