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The United States government has a long-standing policy of using feder

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The United States government has a long-standing policy of using feder  [#permalink]

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New post Updated on: 17 Jun 2018, 00:09
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51% (01:38) correct 49% (01:55) wrong based on 1195

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66% (00:30) correct 34% (00:30) wrong based on 1116

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Source : GMATPrep Default Exam Pack

The United States government has a long-standing policy of using federal funds to keep small business viable. The Small Business Act of 1953 authorized the Small Business Administration (SBA) to enter into contracts with government agencies having procurement powers and to arrange for fulfillment of these contracts by awarding subcontracts to small businesses. In the mid 1960's, during the war on poverty years, Congress hoped to encourage minority entrepreneurs by directing such funding to minority businesses. At first this funding was directed toward minority entrepreneurs with very low incomes. A 1967 amendment to the Economic Opportunity Act directed the SBA to pay special attention to minority-owned businesses located in urban or rural areas characterized by high proportions of unemployed or low-income individuals. Since then, the answer given to the fundamental question of who the recipients should be—the most economically disadvantaged or those with the best prospects for business success—has changed, and the social goals of the programs have shifted, resulting in policy changes.

The first shift occurred during the early 1970's. While the goal of assisting the economically disadvantaged entrepreneur remained, a new goal emerged: to remedy the effects of past discrimination. In fact, in 1970 the SBA explicitly stated that their main goal was to increase the number of minority-owned businesses. At the time, minorities constituted seventeen percent of the nation's population, but only four percent of the nation's self-employed. This ownership gap was held to be the result of past discrimination. Increasing the number of minority-owned firms was seen as a way to remedy this problem. In that context, providing funding to minority entrepreneurs in middle- and high-income brackets seemed justified.

In the late 1970's, the goals of minority-business funding programs shifted again. At the minority business Development Agency, for example, the goal of increasing numbers of minority-owned firms was supplanted by the goal of creating and assisting more minority-owned substantive firms with future growth potential. Assisting manufacturers or wholesalers became far more important than assisting small service businesses. Minority-business funding programs were now justified as instruments for economic development, particularly for creating jobs in minority communities of high unemployment.
1. It can be inferred that the "ownership gap" (see underlined text) would be narrowed if which of the following were to occur?

(A) Minority entrepreneurs received a percentage of government contracts equal to that received by nonminority entrepreneurs.
(B) Middle- and high-income minority entrepreneurs gave more assistance to their low-income counterparts in the business community.
(C) Minority entrepreneurs hired a percentage of minority employees equal to the percentage of minority residents in their own communities.
(D) The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.
(E) Seventeen percent of all persons employed in small businesses were self-employed.




2. Which of the following best describes the function of the second paragraph in the passage as a whole?

(A) It narrows the scope of the topic introduced in the first paragraph.
(B) It presents an example of the type of change discuseed in the first paragraph.
(C) It cites the most striking instance of historical change in a particular government policy.
(D) It explains the rationale for the creation of the government agency whose operations are discussed in the first paragraph.
(E) It presents the results of policies adpoted by the federal government.




3. According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?

(A) Alleviating chronic unemployment in urban areas
(B) Narrowing the ownership gap
(C) Assisting minority-owned businesses with growth potential
(D) Awarding subcontracts to businesses that encouraged community development
(E) Targeting the most economically disadvantaged minority-owned businesses




4. The passage mentions which of the following as a basic consideration in administering minority-business funding programs?

(A) Coming up with the funding for the programs
(B) Encouraging government agencies to assist middle- and high-income minority entrepreneurs
(C) Recognizing the profit potential of small service businesses in urban communities
(D) Determining who should be the recipients of the funding
(E) Determining which entrepreneurs are likely to succeed




Originally posted by ksung84 on 22 Jul 2013, 09:09.
Last edited by hazelnut on 17 Jun 2018, 00:09, edited 2 times in total.
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New post 22 Jul 2013, 11:17
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It can be inferred that the "ownership gap" (see underlined text) would be narrowed if which of the following were to occur?

"At the time, minorities constituted seventeen percent of the nation's population, but only four percent of the nation's self-employed. This ownership gap was held to be the result of past discrimination."
Minorities = 17% population.
Minorities = 4% self employed. <== this is the "gap"
"Increasing the number of minority-owned firms was seen as a way to remedy this problem". In "inference" questions the answer is already in the passage.
This is how the text says that the gap can be narrowed. Which answer can be seen as a rewording of this?

A: Minority entrepreneurs received a percentage of government contracts equal to that received by nonminority entrepreneurs.
B: Middle- and high-income minority entrepreneurs gave more assistance to their low-income counterparts in the business community.
C: Minority entrepreneurs hired a percentage of minority emlpoyees equal to the percentage of minority residents in their own communities.
D: The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.<==CORRECT
E: Seventeen percent of all persons employed in small businesses were self-employed.

Which of the following best describes the function of the second paragraph in the passage as a whole?


....
Since then, the answer given to the fundamental question of who the recipients should be-the most economically disadvantaged or those with the best prospects for business success-has changed, and the social goals of the programs have shifted, resulting in policy changes.

The first shift occured during the early 1970's.
...

The second paragraph is connected to the first one because it discusses something that the first one presented.

A: It narrows the scope of the topic introduced in the first paragraph.
B: It presents an example of the type of change discuseed in the first paragraph.<==CORRECT
C: It cites the most striking instance of historical change in a particular government policy.
D: It explains the rationale for the creation of the government agency whose operations are discussed in the first paragraph.
E: It presents the results of policies adpoted by the federal government.


According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?

While the goal of assisting the economically disadvantaged entrepreneur remained, a new goal emerged: to remedy the effects of past discrimination. (...) This ownership gap was held to be the result of past discrimination.Increasing the number of minority-owned firms was seen as a way to remedy this problem.
Increasing the number of minority-owned firms ==> reduce the GAP (the new goal or priority/focus in 1970).

A: Alleviating chronic unemployment in urban areas
B: Narrowing the ownership gap<== CORRECT
C: Assisting minority-owned businesses with growth potential
D: Awarding subcontracts to businesses that encouraged community development
E: Targeting the most economically disadvantaged minority-owned businesses

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New post 31 Jul 2013, 08:16
1
Zarrolou wrote:
It can be inferred that the "ownership gap" (see underlined text) would be narrowed if which of the following were to occur?

"At the time, minorities constituted seventeen percent of the nation's population, but only four percent of the nation's self-employed. This ownership gap was held to be the result of past discrimination."
Minorities = 17% population.
Minorities = 4% self employed. <== this is the "gap"
"Increasing the number of minority-owned firms was seen as a way to remedy this problem". In "inference" questions the answer is already in the passage.
This is how the text says that the gap can be narrowed. Which answer can be seen as a rewording of this?

A: Minority entrepreneurs received a percentage of government contracts equal to that received by nonminority entrepreneurs.
B: Middle- and high-income minority entrepreneurs gave more assistance to their low-income counterparts in the business community.
C: Minority entrepreneurs hired a percentage of minority emlpoyees equal to the percentage of minority residents in their own communities.
D: The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.<==CORRECT
E: Seventeen percent of all persons employed in small businesses were self-employed.

Which of the following best describes the function of the second paragraph in the passage as a whole?


....
Since then, the answer given to the fundamental question of who the recipients should be-the most economically disadvantaged or those with the best prospects for business success-has changed, and the social goals of the programs have shifted, resulting in policy changes.

The first shift occured during the early 1970's.
...

The second paragraph is connected to the first one because it discusses something that the first one presented.

A: It narrows the scope of the topic introduced in the first paragraph.
B: It presents an example of the type of change discuseed in the first paragraph.<==CORRECT
C: It cites the most striking instance of historical change in a particular government policy.
D: It explains the rationale for the creation of the government agency whose operations are discussed in the first paragraph.
E: It presents the results of policies adpoted by the federal government.


According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?

While the goal of assisting the economically disadvantaged entrepreneur remained, a new goal emerged: to remedy the effects of past discrimination. (...) This ownership gap was held to be the result of past discrimination.Increasing the number of minority-owned firms was seen as a way to remedy this problem.
Increasing the number of minority-owned firms ==> reduce the GAP (the new goal or priority/focus in 1970).

A: Alleviating chronic unemployment in urban areas
B: Narrowing the ownership gap<== CORRECT
C: Assisting minority-owned businesses with growth potential
D: Awarding subcontracts to businesses that encouraged community development
E: Targeting the most economically disadvantaged minority-owned businesses


but where i can read the inference about "ten percent of all self-employed persons" ?' i've understood the general meaning of option D but it contains a very specific statement that i can't understand, and this is why in 4 minutes i could not answer the question :| :(
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New post 31 Jul 2013, 08:24
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lucasITA wrote:
but where i can read the inference about "ten percent of all self-employed persons" ?' i've understood the general meaning of option D but it contains a very specific statement that i can't understand, and this is why in 4 minutes i could not answer the question :| :(


The point of B is not the number 10%.

It can be inferred that the "ownership gap" (see underlined text) would be narrowed if which of the following were to occur?

This is the definition of the gap:"At the time, minorities constituted seventeen percent of the nation's population, but only four percent of the nation's self-employed. "

The gap would be narrowed if the "percentage of self-employed minority persons rose" to an higher level, period.
I can be 10%,11% or 10.5%: it does not matter; the question says "would be narrowed if which of the following were to occur", so if the answer choice say "the percentage is higher (does not matter the numerical value itself) the answer is correct.

D: The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.<==CORRECT

Hope I've explained myself well.
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New post 09 Aug 2013, 23:27
For the last question I was confused between B and D as it mentions primary goal in 1970s

early 1970s - ownership gap
late 1970s - assisting minority-owned firms with future growth potential

At the start of the 2nd para it says
The first shift occured during the early 1970's. While the goal of assisting the economically disadvantaged entrepreneur remained, (Indicates answer is D)

But then again I think I missed this sentence
for example, the goal of increasing numbers of minority-owned firms was supplanted by the goal of creating and assisting more minority-owned substantive firms with future growth potential (indicates answer is B)

Is that the point I missed?
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New post 12 Mar 2014, 11:21
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Re: The United States government has a long-standing policy of using feder  [#permalink]

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New post 30 Mar 2014, 09:38
1
Since I got this wrong, I have a query.

According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?

A: Alleviating chronic unemployment in urban areas
B: Narrowing the ownership gap
C: Assisting minority-owned businesses with growth potential
D: Awarding subcontracts to businesses that encouraged community development
E: Targeting the most economically disadvantaged minority-owned businesses

Para 2 concentrates on early 1970 and para 3 concentrates on late 1970's.

Para 2 talks about ownership GAP created by the past discrimination. However, para 3 talks about the focus shift of policy to assisting minority based business having growth potential not solely awarding minority business which was economically disadvantaged.

Please suggest

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New post 15 Apr 2014, 03:49
TGC wrote:
Since I got this wrong, I have a query.

According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?

A: Alleviating chronic unemployment in urban areas
B: Narrowing the ownership gap
C: Assisting minority-owned businesses with growth potential
D: Awarding subcontracts to businesses that encouraged community development
E: Targeting the most economically disadvantaged minority-owned businesses

Para 2 concentrates on early 1970 and para 3 concentrates on late 1970's.

Para 2 talks about ownership GAP created by the past discrimination. However, para 3 talks about the focus shift of policy to assisting minority based business having growth potential not solely awarding minority business which was economically disadvantaged.

Please suggest

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TGC!


I have exactly the same questions! Could someone provide a better explanation for this particular answer choice? It seemed to me the answer could go either way. This is a tough one.
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Re: The United States government has a long-standing policy of using feder  [#permalink]

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New post 28 May 2014, 20:13
Zarrolou wrote:
lucasITA wrote:
but where i can read the inference about "ten percent of all self-employed persons" ?' i've understood the general meaning of option D but it contains a very specific statement that i can't understand, and this is why in 4 minutes i could not answer the question :| :(


The point of B is not the number 10%.

It can be inferred that the "ownership gap" (see underlined text) would be narrowed if which of the following were to occur?

This is the definition of the gap:"At the time, minorities constituted seventeen percent of the nation's population, but only four percent of the nation's self-employed. "

The gap would be narrowed if the "percentage of self-employed minority persons rose" to an higher level, period.
I can be 10%,11% or 10.5%: it does not matter; the question says "would be narrowed if which of the following were to occur", so if the answer choice say "the percentage is higher (does not matter the numerical value itself) the answer is correct.

D: The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.<==CORRECT

Hope I've explained myself well.


I eliminated B, because I assumed that the question was asking which of the following would "close" the "ownership gap"?
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New post 03 Aug 2014, 00:52
And the last question still remains unanswered . Can any verbal expert shed some light on ques 3 of this passage? I'm confused between option B and C for the reasons stated above.
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New post 04 Aug 2014, 10:44
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Q3 asks about "in 1970". The second paragraph mentions that "in 1970" the stated main goal was to increase the number of minority-owned businesses. The subsequent sentences identify this as the "ownership gap". Hence B is correct.

The focus on assisting minority-owned firms with growth potential occurred only in the late 1970s, not "in 1970". Note that the question does not ask "in the 1970s."
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New post 22 Sep 2014, 19:42
prasi55 wrote:
Q3 asks about "in 1970". The second paragraph mentions that "in 1970" the stated main goal was to increase the number of minority-owned businesses. The subsequent sentences identify this as the "ownership gap". Hence B is correct.

The focus on assisting minority-owned firms with growth potential occurred only in the late 1970s, not "in 1970". Note that the question does not ask "in the 1970s."


That was bang on! I was struggling so much to identify what could be the reason. Got it now! Thank you so much. just a month left for GMAT but looks like my understanding is still evolving!
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New post 07 Oct 2014, 13:06
prasi55 and other :
In 1970 the main goal was to increase the number of minority-owned businesses.
Which was a remedy to solve the problem of => increased "Ownership Gap".. That means they tried to reduce the Ownership Gap
Thus we can say that in 1970 the main focus was >>B. Narrowing the ownership gap.

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New post 02 Oct 2015, 08:09
In Q2, can someone please explain how to choose between A and B.

What's the meaning of "Since then, the answer given to the fundamental question of who the recipients should be-the most economically disadvantaged or those with the best prospects for business success-has changed, and the social goals of the programs have shifted, resulting in policy changes.".

Does it mean policy changes happened multiple times since then or they were shifted only at that time?
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New post 30 Dec 2015, 23:20
Zarrolou wrote:
It can be inferred that the "ownership gap" (see underlined text) would be narrowed if which of the following were to occur?

"At the time, minorities constituted seventeen percent of the nation's population, but only four percent of the nation's self-employed. This ownership gap was held to be the result of past discrimination."
Minorities = 17% population.
Minorities = 4% self employed. <== this is the "gap"
"Increasing the number of minority-owned firms was seen as a way to remedy this problem". In "inference" questions the answer is already in the passage.
This is how the text says that the gap can be narrowed. Which answer can be seen as a rewording of this?

A: Minority entrepreneurs received a percentage of government contracts equal to that received by nonminority entrepreneurs.
B: Middle- and high-income minority entrepreneurs gave more assistance to their low-income counterparts in the business community.
C: Minority entrepreneurs hired a percentage of minority emlpoyees equal to the percentage of minority residents in their own communities.
D: The percentage of self-employed minority persons rose to more than ten percent of all self-employed persons.<==CORRECT
E: Seventeen percent of all persons employed in small businesses were self-employed.

Which of the following best describes the function of the second paragraph in the passage as a whole?


....
Since then, the answer given to the fundamental question of who the recipients should be-the most economically disadvantaged or those with the best prospects for business success-has changed, and the social goals of the programs have shifted, resulting in policy changes.

The first shift occured during the early 1970's.
...

The second paragraph is connected to the first one because it discusses something that the first one presented.

A: It narrows the scope of the topic introduced in the first paragraph.
B: It presents an example of the type of change discuseed in the first paragraph.<==CORRECT
C: It cites the most striking instance of historical change in a particular government policy.
D: It explains the rationale for the creation of the government agency whose operations are discussed in the first paragraph.
E: It presents the results of policies adpoted by the federal government.


According to the passage, in 1970 funding to minority entrepreneurs focused primarily on which of the following?

While the goal of assisting the economically disadvantaged entrepreneur remained, a new goal emerged: to remedy the effects of past discrimination. (...) This ownership gap was held to be the result of past discrimination.Increasing the number of minority-owned firms was seen as a way to remedy this problem.
Increasing the number of minority-owned firms ==> reduce the GAP (the new goal or priority/focus in 1970).

A: Alleviating chronic unemployment in urban areas
B: Narrowing the ownership gap<== CORRECT
C: Assisting minority-owned businesses with growth potential
D: Awarding subcontracts to businesses that encouraged community development
E: Targeting the most economically disadvantaged minority-owned businesses


In the second question, I was confused between B and C and ultimately chose C because that was when the policy underwent major changes and completely changed the way things were! That is a historical change isn't it? So why is C wrong?
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New post 31 Jan 2016, 00:11
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C adds an extreme element ("most striking") that isn't supported by the passage. Perhaps that change seemed more striking to you than the change in paragraph 3, but this isn't established in the passage. B is milder, and so easier to support. One way to think about it is that there's no way for C to be true without B also being true. Therefore, there's no justification for eliminating B and selecting C.
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New post 06 Nov 2016, 07:24
Took 9 Mins and 30 sec to complete :oops: . But got all 3 right.
2:25 mins for the Q1. How can I improve timing in RC passages such as this one.
Thanks in advance for your kind advises.
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New post 11 Feb 2017, 10:48
reynaldreni wrote:
Took 9 Mins and 30 sec to complete :oops: . But got all 3 right.
2:25 mins for the Q1. How can I improve timing in RC passages such as this one.
Thanks in advance for your kind advises.


You got all right good :) but It seems you didnt give enough time to read the passage therefore you took little more time
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New post 11 Feb 2017, 10:52
For question number 2 I was confused between B and E and marked E. But after that I realised why B is wrong .Because the policies were of SBA not Federal governemnt. Experts please correct If I am wrong.
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New post 22 Feb 2017, 23:26
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why is Q2 "a" (and not "b") and why is Q3 "b" (and not "c")?
Re: The United States government has a long-standing policy of using feder &nbs [#permalink] 22 Feb 2017, 23:26

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