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NEW QUESTION: 1
Recent years have brought minority-owned businesses in the United States unprecedented
opportunities-as well as new and significant risks. Civil rights activists have long argued that one of the
principal reasons why Blacks, Hispanics and the other minority groups have difficulty establishing
themselves in business is that they lack access to the sizable orders and subcontracts that are generated
by large companies. Now congress, in apparent agreement, has required by law that businesses awarded
federal contracts of more than $500,000 do their best to find minority subcontractors and record their
efforts to do so on forms field with the government. Indeed, some federal and local agencies have gone
so far as to set specific percentage goals for apportioning parts of public works contracts to minority
enterprises.
Corporate response appears to have been substantial. According to figures collected in 1977, the total of
corporate contracts with minority business rose from $77 to $1.1 billion in 1977. The projected total of
corporate contracts with minority business for the early 1980's is estimated to be over $3 billion per year
with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased
patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending
themselves financially, since most are small concerns and, unlike large businesses they often need to
make substantial investments in new plants, staff, equipment, and the like in order to perform work
subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face
potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small
entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and
resources and a small company's efforts must soon result in orders, or both the morale and the financial
health of the business will suffer. A second risk is that White-owned companies may-seek to cash inon the
increasing apportion-ments through formation of joint ventures with minority-owned concerns, of course,
in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises
can team up to acquire business that neither could Third, a minority enterprise that secures the business
of one large corporate customer often runs the danger of becoming and remaining dependent. Even in the
best of circumstances, fierce competition from larger, more established companies makes it difficult for
small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a
single corporate benefactor, they may truly have to struggle against complacency arising from their
current success.
According to the passage, civil rights activists maintain that one disadvantage under which minority
owned businesses have traditionally had to labor is that they have
A. not had sufficient opportunity to secure businesses created by large corporations
B. not been able to advertise in those media that reach large numbers of potential customers
C. been denied bank loans at rates comparable to those afforded larger competitors
D. been especially vulnerable to governmental
E. not had adequate representation in the centers of government power.
Answer: A
NEW QUESTION: 2
Cost of Poor Quality (COPQ) can be classified as Visible Costs and Hidden Costs. Which of these items is a Visible Cost?
A. Time Value of Money
B. Lost Customer Loyalty
C. Late Delivery
D. Returns
Answer: D
NEW QUESTION: 3
A. Option D
B. Option C
C. Option B
D. Option A
Answer: D
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