Question

According to the passage, the MESBIC approach differs from the SBA approach in that MESBICs:

• 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.

Answer 1

The correct option is D rely on the participation of large corporations to finance minority businesses.

D is the best answer. In the second paragraph, the author describes the MESBIC approach as one in which “large corporations participate in the development of successful and stable minority businesses by making use of government-sponsored venture capital” (lines 26-31). There is no indication in the passage that the SBA approach relies on the participation of large corporations.