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Which of the ...

Question

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

A

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

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B

The maximum term for loans made to recipient businesses was 15 years.

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C

Business loans were considered to be more useful to recipient businesses than was management and technical assistance.

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D

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

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E

The capitalization needs of recipient businesses were assessed and then provided for adequately.

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Solution

The correct option is D
Recipient businesses were encouraged to relocate to areas more favorable for business development.

This question asks you to draw an inference about the SBA program.

Although the passage does not actually state that the failure rate for SBA recipient businesses was higher than anticipated, in the first paragraph the author does state that the results of the SBA program were disappointing, in part because of the high failure rate among SBA-sponsored businesses.

From this, it can be inferred that the anticipated failure rate was lower than the actual rate.

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