Small Businesses: The Backbone of the Economy - TOEFL Reading Practice Test

In the TOEFL Reading section, you will often encounter passages like 'Small Businesses: The Backbone of the Economy'. These passages provide insights into important economic concepts and the role small businesses play in the overall economy. Familiarizing yourself with such topics helps improve your reading comprehension and analytical skills.

Engaging with passages related to small businesses can aid you in understanding various economic contexts. This is essential for the TOEFL, as it prepares you for the diverse topics and writing styles you may encounter in the test.

Reading Instructions:

• You have 15 minutes to read the following passage and answer all 9 questions related to it.
• Most questions are worth 1 point, but the last question is worth more. The directions indicate how many points you will receive for that specific question.
• The specific section/paragraphs have been provided again with the question for ease of understanding and quick solution.
• Some questions include a word or phrase that is highlighted in the question as well as in the paragraph for quick reference.

Directions: Once you have read the passage, answer the following questions.

Paragraph 1

Small businesses are often seen as the backbone of the economy, especially in developed countries like the United Kingdom and the United States. Defined as businesses with a limited number of employeestypically fewer than 250and relatively modest revenue, small businesses include a variety of sectors, such as retail, hospitality, technology, and professional services. According to the Federation of Small Businesses (FSB), small businesses make up about 99% of all businesses in the UK. They employ around 60% of the workforce. This significant presence not only highlights their importance in job creation but also emphasizes their role in encouraging innovation and competition in the marketplace.

Factual Information Questions

1. According to paragraph 1, what percentage of all businesses in the UK are classified as small businesses?
   
   1. 60%
   2. 75%
   3. 99%
   4. 50%

Negative Factual Information Questions

1. According to paragraph 1, which of the following is NOT mentioned as a sector that includes small businesses?
   
   1. Retail
   2. Hospitality
   3. Manufacturing
   4. Technology

Paragraph 2

One of the main functions of small businesses is to provide aid during emergencies. For example, organizations like Mdecins Sans Frontires (Doctors Without Borders) deliver essential medical care in conflict zones and areas hit by natural disasters. Their ability to organize quickly and work in challenging environments allows them to reach populations that government agencies may struggle to help. Also, small businesses often work with local communities to ensure that aid is suitable and effectively meets the specific needs of those affected. This grassroots approach not only makes their efforts more effective but also strengthens communities by involving them in the decision-making process, fostering a sense of ownership over the solutions implemented.

Inference Questions

1. What can be inferred about the relationship between small businesses and local communities from paragraph 2?
   
   1. Small businesses often ignore local needs.
   2. Small businesses are primarily focused on profit.
   3. Small businesses enhance community involvement in aid efforts.
   4. Small businesses rely solely on government support.

Paragraph 3

However, the role of small businesses is not without controversy. Critics argue that the growth of small businesses can lead to a lack of responsibility, as these organizations may operate with little oversight. In some cases, small businesses have been accused of creating dependency among the communities they serve instead of encouraging long-term growth. Additionally, the funding sources of small businesses can raise ethical questions; many organizations rely on donations from private individuals, corporations, or even governments, which may unintentionally influence their agendas and priorities. This potential conflict of interest has led to calls for greater openness and responsibility within the sector, as involved parties seek to ensure that small businesses stay true to their missions and do not compromise their integrity for financial gain.

Rhetorical Purpose Questions

1. Why does the author mention the potential conflict of interest in paragraph 3?
   
   1. To highlight the financial success of small businesses.
   2. To argue that small businesses should operate without oversight.
   3. To illustrate the ethical challenges faced by small businesses.
   4. To suggest that small businesses are always beneficial.

Paragraph 4

Beyond humanitarian efforts, small businesses play an important role in environmental support. Groups like Greenpeace and the World Wildlife Fund (WWF) have led campaigns aimed at raising awareness about climate change, deforestation, and loss of biodiversity. Through thorough research, public education, and lobbying efforts, these small businesses strive to influence policy decisions and promote sustainable practices. For example, Greenpeace has successfully campaigned against whaling and deforestation, leading to significant changes in laws and corporate practices. The ability of small businesses to organize public opinion and energize grassroots movements has been crucial in advancing environmental causes, often filling gaps left by government inaction and highlighting the urgency of addressing ecological crises.

Vocabulary Questions

1. In paragraph 4, what does the term "grassroots movements" refer to?
   
   1. Large-scale corporate initiatives
   2. Local community efforts to effect change
   3. Government-led campaigns
   4. International organisations

Paragraph 5

The impact of small businesses goes beyond immediate aid and environmental issues; they also play a significant role in promoting human rights and social justice. Many small businesses focus on topics like gender equality, child protection, and the rights of disadvantaged peoples. By documenting human rights abuses and advocating for policy changes, these organizations hold governments responsible and amplify the voices of marginalized communities. For instance, groups like Amnesty International and Human Rights Watch conduct extensive research and reporting on human rights violations, raising global awareness and prompting international responses. Their work not only aims to alleviate suffering but also seeks to create lasting change by addressing the root causes of injustice, fostering a more equitable society.

Sentence Simplification Questions

1. Which of the following sentences best expresses the essential information in the following text from paragraph 5?
   

      "Many small businesses focus on topics like gender equality, child protection, and the rights of disadvantaged peoples."

   1. Small businesses often ignore social issues.
   2. Small businesses are involved in various social justice issues.
   3. Small businesses primarily focus on profit.
   4. Small businesses do not engage in human rights advocacy.

Paragraph 6

To sum up, small businesses are essential to the health of the economy, providing jobs, encouraging innovation, and contributing to local communities. While they face considerable challenges, advancements in technology and changing consumer choices offer new paths for growth and survival. Policymakers and involved parties must recognize the importance of small businesses and create an environment that supports their development. This includes improving access to finance, reducing regulatory burdens, and promoting digital skills among small business owners. By addressing these issues, societies can ensure that small businesses remain a vital part of the economic structure, driving growth and innovation for years to come. Additionally, ongoing research into the changing landscape of small businesses will be essential for uncovering new strategies for their success in an increasingly competitive world.

Purpose of the Passage Questions

1. What is the main purpose of paragraph 6?
   
   1. To discuss the challenges faced by large corporations.
   2. To summarise the importance of small businesses and suggest ways to support them.
   3. To highlight the negative impact of small businesses on the economy.
   4. To argue against the existence of small businesses.

Insert Missing Sentence Question

1. In paragraph 6, there is a missing sentence. The paragraph is repeated below and shows four letters (A, B, C, and D) that indicate where the following sentence could be added.
   

   "Small businesses are crucial for fostering innovation and adapting to market changes."
   

   Where would the sentence best fit?

   (A) To sum up, small businesses are essential to the health of the economy, providing jobs, encouraging innovation, and contributing to local communities. (B) While they face considerable challenges, advancements in technology and changing consumer choices offer new paths for growth and survival. (C) Policymakers and involved parties must recognize the importance of small businesses and create an environment that supports their development. (D) This includes improving access to finance, reducing regulatory burdens, and promoting digital skills among small business owners.

Prose Summary Questions

1. Directions: An introductory sentence for a brief summary of the passage is provided below. Complete the summary by selecting the THREE answer choices that express the most important ideas in the passage. Some sentences do not belong in the summary because they express ideas that are not presented in the passage or are minor ideas in the passage. This question is worth 2 points.
   

   Small businesses play a vital role in the economy and society by:

   Answer Choices

   1. Providing jobs and fostering innovation.
   2. Focusing solely on profit and growth.
   3. Engaging in humanitarian efforts and environmental advocacy.
   4. Promoting human rights and social justice.

Prose Summary Questions

1. The impact of small businesses is significant, as they contribute to various sectors and address critical social issues.

   Answer Choices: 

   1. To highlight the significance of small businesses in contributing to various sectors and addressing critical social issue.
   2. To discuss the challenges faced by small businesses in the current economic climate.
   3. To compare small businesses with large corporations in terms of economic impact.
   4. To provide a historical overview of small business development and its evolution over time.

Answer Key with Explanation for TOEFL Reading Passage - Small Businesses: The Backbone of the Economy

1. Answer: C

Explanation: The passage explicitly states that "small businesses make up about 99% of all businesses in the UK." This statistic highlights the overwhelming presence of small businesses in the UK economy, underscoring their significance.

2. Answer: C

Explanation: The passage lists sectors such as retail, hospitality, technology, and professional services as examples of small businesses. Manufacturing is not mentioned, making it the correct answer to this question.

3. Answer: C

Explanation: The passage describes how small businesses work with local communities to ensure that aid meets specific needs, indicating that they foster community involvement. This suggests a collaborative relationship rather than one where small businesses ignore local needs or rely solely on government support.

4. Answer: C

Explanation: The author discusses the ethical concerns surrounding funding sources for small businesses, highlighting how these can influence their agendas. This serves to illustrate the challenges small businesses face in maintaining integrity while seeking financial support.

5. Answer: B

Explanation: The term "grassroots movements" typically refers to initiatives that originate from local communities rather than being imposed by larger organizations or governments. The passage discusses how small businesses energize these movements, reinforcing this definition.

6. Answer: B

Explanation: This option accurately captures the essence of the original sentence, which highlights the involvement of small businesses in important social issues like gender equality and child protection, without implying neglect or a profit focus.

7. Answer: B

Explanation: The paragraph summarizes the critical role of small businesses in the economy and outlines specific recommendations for policymakers to support their development, making option B the most fitting choice.

8. Answer: A

Explanation: The sentence "Small businesses are crucial for fostering innovation and adapting to market changes" fits best after the introductory statement about the essential role of small businesses. It logically follows the mention of their importance in providing jobs and encouraging innovation.

9. Answer Choices: A, C, D

Explanation: A is correct as the passage discusses job creation and innovation. 

C is correct because the passage mentions humanitarian efforts and environmental advocacy.

D is correct as it highlights the focus on human rights and social justice.

B is incorrect as the passage does not suggest that small businesses focus solely on profit and growth.

10.Answer: A 

Explanation: This option captures the passage's focus on the diverse contributions of small businesses to the economy, including job creation, innovation, and social advocacy. It reflects the multifaceted role small businesses play in addressing critical social issues and their overall significance in various sectors. By emphasizing these aspects, the option aligns closely with the passage's main ideas.

Practicing with passages like 'Small Businesses: The Backbone of the Economy' can greatly enhance your performance in the TOEFL Reading section. This approach not only helps you understand complex topics but also equips you with the skills needed to tackle a range of reading materials on the test. Regular practice will prepare you effectively for success on exam day.

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