Find all School-related info fast with the new School-Specific MBA Forum

It is currently 22 Aug 2014, 00:13

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

In contrast to traditional analyses of minority business,

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Manager
Manager
avatar
Joined: 07 Feb 2010
Posts: 162
Followers: 2

Kudos [?]: 62 [0], given: 101

GMAT Tests User
In contrast to traditional analyses of minority business, [#permalink] New post 18 Oct 2010, 19:27
In contrast to traditional analyses of minority business, the sociological analysis contends that minority business ownership is a group-level phenomenon, in that it is largely dependent upon social-group resources for its development. Specifically, this analysis indicates that support networks play a critical role in starting and maintaining minority business enterprises by providing owners with a range of assistance, from the informal encouragement of family members and friends to dependable sources of labor and clientele from the owner’s ethnic group. Such self-help networks, which encourage and support ethnic minority entrepreneurs, consist of “primary” institutions, those closest to the individual in shaping his or her behavior and beliefs. They are characterized by the face-to-face association and cooperation of persons united by ties of mutual concern. They form an intermediate social level between the individual and larger “secondary” institutions based on impersonal relationships. Primary institutions comprising the support network include kinship, peer, and neighborhood or community subgroups.

A major function of self-help networks is financial support. Most scholars agree that minority business owners have depended primarily on family funds and ethnic community resources for investment capital. Personal savings have been accumulated, often through frugal living habits that require sacrifices by the entire family and are thus a product of long-term family financial behavior. Additional loans and gifts from relatives, forthcoming because of group obligation rather than narrow investment calculation, have supplemented personal savings. Individual entrepreneurs do not necessarily rely on their kin because they cannot obtain financial backing from commercial resources. They may actually avoid banks because they assume that commercial institutions either cannot comprehend the special needs of minority enterprise or charge unreasonably high interest rates.
Within the larger ethnic community, rotating credit associations have been used to raise capital. These associations are informal clubs of friends and other trusted members of the ethnic group who make regular contributions to a fund that is given to each contributor in rotation. One author estimates that 40 percent of New York Chinatown firms established during 1900-1950 utilized such associations as their initial source of capital. However, recent immigrants and third or fourth generations of older groups now employ rotating credit associations only occasionally to raise investment funds. Some groups, like Black Americans, found other means of financial support for their entrepreneurial efforts. The first Black-operated banks were created in the late nineteenth century as depositories for dues collected from fraternal or lodge groups, which themselves had sprung from Black churches. Black banks made limited investments in other Black enterprises. Irish immigrants in American cities organized many building and loan associations to provide capital for home construction and purchase. They, in turn, provided work for many Irish home-building contractor firms. Other ethnic and minority groups followed similar practices in founding ethnic-directed financial institutions.
1. Based on the information in the passage, it would be LEAST likely for which of the following persons to be part of a self-help network?
(A) The entrepreneur’s childhood friend
(B) The entrepreneur’s aunt
(C) The entrepreneur’s religious leader
(D) The entrepreneur’s neighbor
(E) The entrepreneur’s banker
[Reveal] Spoiler:
E


2. Which of the following illustrates the working of a self-help support network, as such networks are described in the passage?
(A) A public high school offers courses in book-keeping and accounting as part of its open-enrollment adult education program.
(B) The local government in a small city sets up a program that helps teen-agers find summer jobs.
(C) A major commercial bank offers low-interest loans to experienced individuals who hope to establish their own businesses.
(D) A neighborhood-based fraternal organization develops a program of on-the-job training for its members and their friends.
(E) A community college offers country residents training programs that can lead to certification in a variety of technical trades.
[Reveal] Spoiler:
D


3. Which of the following can be inferred from the passage about rotating credit associations?
(A) They were developed exclusively by Chinese immigrants.
(B) They accounted for a significant portion of the investment capital used by Chinese immigrants in New York in the early twentieth century.
(C) Third-generation members of an immigrant group who started businesses in the 1920’s would have been unlikely to rely on them.
(D) They were frequently joint endeavors by members of two or three different ethnic groups.
(E) Recent immigrants still frequently turn to rotating credit associations instead of banks for investment capital.
[Reveal] Spoiler:
B


4. The passage best supports which of the following statements?
(A) A minority entrepreneur who had no assistance from family members would not be able to start a business.
(B) Self-help networks have been effective in helping entrepreneurs primarily in the last 50 years.
(C) Minority groups have developed a range of alternatives to standard financing of business ventures.
(D) The financial institutions founded by various ethnic groups owe their success to their unique formal organization.
(E) Successful minority-owned businesses succeed primarily because of the personal strengths of their founders.
[Reveal] Spoiler:
C


5. Which of the following best describes the organization of the second paragraph?
(A) An argument is delineated, followed by a counter-argument.
(B) An assertion is made and several examples are provided to illustrate it.
(C) A situation is described and its historical background is then outlined.
(D) An example of a phenomenon is given and is then used as a basis for general conclusions.
(E) A group of parallel incidents is described and the distinctions among the incidents are then clarified.
[Reveal] Spoiler:
B


6. According to the passage, once a minority-owned business is established, self-help networks contribute which of the following to that business?
(A) Information regarding possible expansion of the business into nearby communities
(B) Encouragement of a business climate that is nearly free of direct competition
(C) Opportunities for the business owner to reinvest profits in other minority-owned businesses
(D) Contact with people who are likely to be customers of the new business
(E) Contact with minority entrepreneurs who are members of other ethnic groups
[Reveal] Spoiler:
D


7. It can be inferred from the passage that traditional analyses of minority business would be LEAST likely to do which of the following?
(A) Examine businesses primarily in their social contexts
(B) Focus on current, rather than historical, examples of business enterprises
(C) Stress common experiences of individual entrepreneurs in starting businesses
(D) Focus on the maintenance of businesses, rather than means of starting them
(E) Focus on the role of individual entrepreneurs in starting a business
[Reveal] Spoiler:
A


8. Which of the following can be inferred from the passage about the Irish building and loan associations mentioned in the last paragraph?
(A) They were started by third- or fourth-generation immigrants.
(B) They originated as offshoots of church-related groups.
(C) They frequently helped Irish entrepreneurs to finance business not connected with construction.
(D) They contributed to the employment of many Irish construction workers.
(E) They provided assistance for construction businesses owned by members of other ethnic groups.
[Reveal] Spoiler:
D


Last edited by fameatop on 30 Aug 2013, 05:20, edited 1 time in total.
OA not Provided & improper formatting
Manager
Manager
avatar
Joined: 07 Feb 2010
Posts: 162
Followers: 2

Kudos [?]: 62 [0], given: 101

GMAT Tests User
Re: minority owned business [#permalink] New post 18 Oct 2010, 19:29
OA's are E D B C B D A D

CAN SOME ONE EXPLAIN 6 & 7 Q?
Manager
Manager
User avatar
Joined: 13 Apr 2010
Posts: 173
Location: singapore
Schools: Wharton,NY Stern,INSEAD,Stanford
Followers: 2

Kudos [?]: 29 [0], given: 25

GMAT ToolKit User GMAT Tests User
Re: minority owned business [#permalink] New post 29 Oct 2010, 07:49
e d c c b d e d
_________________

Regards,
Nagesh
My GMAT Study Plan: my-gmat-study-plan-112833.html
Idioms List : gmat-idioms-104283.html?hilit=idioms#p813231
--------------------------------------
Consider Kudos if you like my posts

Manager
Manager
avatar
Status: Struggling hard to maintain focus
Joined: 14 Jun 2011
Posts: 122
Location: Kolkata
Schools: ISB, IIM
Followers: 1

Kudos [?]: 9 [0], given: 11

Re: minority owned business [#permalink] New post 28 Aug 2011, 03:36
Hi,
Any body, please explain the following-
3. Which of the following can be inferred from the passage about rotating credit associations?
(A) They were developed exclusively by Chinese immigrants.
(B) They accounted for a significant portion of the investment capital used by Chinese immigrants in New York in the early twentieth century.
(C) Third-generation members of an immigrant group who started businesses in the 1920’s would have been unlikely to rely on them.
(D) They were frequently joint endeavors by members of two or three different ethnic groups.
(E) Recent immigrants still frequently turn to rotating credit associations instead of banks for investment capital.
_________________

* An ounce of prevention is worth a pound of cure
** Every single second counts.
*** One KUDO earned is One step closer to GMAT. Help me in getting closer to GMAT.
**** i-invite-you-in-my-gmat-journey-121396.html.


Test Description_______Date____Total___Quant_____ Verbal
GMAT PREP1_____________________610
GMAX online test 1____29.07.2011__540_____43________19
MGMAT CAT 1_________03.09.2011__580____42________28
MGMAT CAT 2_________02.10.2011__690____48________36
GMAX online test 2_____16.10.2011__640____48________32
MGMAT CAT 3_________23.11.2011__670____47________34
Veritas free CAT______ 31.10.2011___630___ 46________33
MGMAT CAT 4_________06.11.2011__690____48________36
MGMAT CAT 5_________13.11.2011__660____46________34
MGMAT CAT 6_________19.11.2011__680____51________33
GMAT PREP2__________23.11.2011__680
GMAT Exam___________24.11.2011__690____50________34

2 KUDOS received
Intern
Intern
avatar
Status: Dedicated to crack GMAT and to find an admission in top B schoolm
Joined: 13 Jan 2011
Posts: 29
Schools: IESE, LBS, ISB
Followers: 1

Kudos [?]: 23 [2] , given: 3

Re: minority owned business [#permalink] New post 18 Sep 2011, 22:23
2
This post received
KUDOS
Hi akbism,
Please fine the clarification below :

Any body, please explain the following-
3. Which of the following can be inferred from the passage about rotating credit associations?
(A) They were developed exclusively by Chinese immigrants. -- Chinese used them extensively but they haven't developed it exclusively.
(B) They accounted for a significant portion of the investment capital used by Chinese immigrants in New York in the early twentieth century. --- correctly stated
(C) Third-generation members of an immigrant group who started businesses in the 1920’s would have been unlikely to rely on them. ---- These members used this for creating their initial capital (so wrong ans)
(D) They were frequently joint endeavors by members of two or three different ethnic groups. (they woked within the same ethnic group.
(E) Recent immigrants still frequently turn to rotating credit associations instead of banks for investment capital. easy to eliminate this

+1 kudos
Intern
Intern
avatar
Joined: 29 Jun 2011
Posts: 5
Followers: 0

Kudos [?]: 0 [0], given: 0

Re: minority owned business [#permalink] New post 03 Oct 2011, 01:36
For question 7 the answer should be inferred from the first 4 sentences of the passage.

For question 3 the answer is in the last paragraph were it says that "One author estimates that 40 percent of New York Chinatown firms established during 1900-1950 utilized such associations as their initial source of capital".(Dont infer too much!stick to the text and you will find that only B fits the bill).
Intern
Intern
avatar
Joined: 27 Jan 2011
Posts: 28
Followers: 0

Kudos [?]: 4 [0], given: 0

Re: minority owned business [#permalink] New post 06 Oct 2011, 12:24
My ans: 1. E, 2. D, 3. B, 4. C, 5. D, 6. D, 7. A, 8. D

Can someone explain #5. OA = B, but I do not see an example in the second para illustrating the assertion.

5. Which of the following best describes the organization of the second paragraph?
(A) An argument is delineated, followed by a counter-argument.
(B) An assertion is made and several examples are provided to illustrate it.
(C) A situation is described and its historical background is then outlined.
(D) An example of a phenomenon is given and is then used as a basis for general conclusions.
(E) A group of parallel incidents is described and the distinctions among the incidents are then clarified.
Manager
Manager
avatar
Joined: 16 Sep 2011
Posts: 181
Concentration: Strategy, Operations
Schools: ISB '15
GMAT 1: 720 Q48 V40
GPA: 3.18
WE: Supply Chain Management (Manufacturing)
Followers: 13

Kudos [?]: 35 [0], given: 34

Reviews Badge
Re: minority owned business [#permalink] New post 14 Oct 2011, 09:37
gummybear wrote:
My ans: 1. E, 2. D, 3. B, 4. C, 5. D, 6. D, 7. A, 8. D

Can someone explain #5. OA = B, but I do not see an example in the second para illustrating the assertion.

5. Which of the following best describes the organization of the second paragraph?
(A) An argument is delineated, followed by a counter-argument.
(B) An assertion is made and several examples are provided to illustrate it.
(C) A situation is described and its historical background is then outlined.
(D) An example of a phenomenon is given and is then used as a basis for general conclusions.
(E) A group of parallel incidents is described and the distinctions among the incidents are then clarified.


i think you simply read the wrong paragraph(like i first did)

Primary institutions comprising the support network include kinship, peer, and neighborhood or community subgroups.<==An assertion is made here.A major function of self-help networks is financial support. Most scholars agree that minority business owners have depended primarily on family funds and ethnic community resources for investment capital.example1 Personal savings have been accumulated, often through frugal living habits that require sacrifices by the entire family and are thus a product of long-term family financial behavior. example 2Additional loans and gifts from relatives, forthcoming because of group obligation rather than narrow investment calculation, have supplemented personal savings. Individual entrepreneurs do not necessarily rely on their kin because they cannot obtain financial backing from commercial resources. They may actually avoid banks because they assume that commercial institutions either cannot comprehend the special needs of minority enterprise or charge unreasonably high interest rates...

hence B
Manager
Manager
avatar
Joined: 18 Jun 2010
Posts: 150
Followers: 0

Kudos [?]: 15 [0], given: 2

GMAT Tests User
Re: In contrast to traditional analyses of minority business, [#permalink] New post 21 Oct 2011, 21:31
Got the following answers but took a lot of time:(

E, D, C, C, B, D, A, D

Can anybody explain Q3?

Passage says 40% of chinese firms used these capitals but doesn't indicate if these capitals were actually accounted for a SIGNIFICANT portion of the actual investement. E.g: 40% of these firms might have used 10% of these capital reserves each, definitely not a significant portion of the investment capital. Whereas, option C is directly supported by the following line in the passage:

" However, recent immigrants and third or fourth generations of older groups now employ rotating credit associations only occasionally to raise investment funds".

Can anybody please share his/her thoughts on this?
Director
Director
avatar
Status: Prep started for the n-th time
Joined: 29 Aug 2010
Posts: 708
Followers: 5

Kudos [?]: 94 [0], given: 37

GMAT Tests User
Re: In contrast to traditional analyses of minority business, [#permalink] New post 19 Nov 2011, 04:31
A pretty good long passage.

Got all but one correct( got Q5 wrong). These organization questions are killing me. Any specific strategy to be followed?

Crick
Manager
Manager
avatar
Joined: 08 Aug 2011
Posts: 203
GPA: 3.5
Followers: 1

Kudos [?]: 10 [0], given: 51

GMAT Tests User
Re: In contrast to traditional analyses of minority business, [#permalink] New post 03 Jan 2012, 05:29
E.E.B.C.C.D.D.D.5 correct 3 incorrect.
Intern
Intern
avatar
Joined: 23 Jan 2011
Posts: 7
Followers: 0

Kudos [?]: 5 [0], given: 0

Re: In contrast to traditional analyses of minority business, [#permalink] New post 22 Feb 2013, 04:07
I do not understand how to choose bettwen C and D for question 6.

Other options could be eliminated as nothing is stated.

I chose C based on the example given regarding the rotating credit associations.

But i guess I can eliminate C based on the fact that no information is provided regarding reinvestment of profits.

Is there a easier way to infer D here?
Re: In contrast to traditional analyses of minority business,   [#permalink] 22 Feb 2013, 04:07
    Similar topics Author Replies Last post
Similar
Topics:
3 Experts publish their posts in the topic Minority-business funding programs eandresmo 2 13 Dec 2013, 22:37
1 Contrast amitdgr 2 09 Oct 2008, 07:41
Reading comprehension minority owned businesses mand-y 3 07 Nov 2005, 12:44
Minority-owned businesses wild_desperado 4 13 Jun 2005, 03:53
Recent years have brought minority-owned businesses in the chunjuwu 9 24 Feb 2005, 00:38
Display posts from previous: Sort by

In contrast to traditional analyses of minority business,

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.