PrepTest 77, Section 3, Question 3

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Researchers have found that the percentage of people who start new businesses is much higher in countries with high per capita income than in countries with moderate per capita income. This is to be expected since most entrepreneurs in high- and middle-income countries start businesses to take advantage of perceived business opportunities, and there are more such opportunities in high-income countries. Surprisingly, however, the researchers also found that the percentage of people who start businesses is even higher in low-income countries than in high-income ones.

Researchers have found that the percentage of people who start new businesses is much higher in countries with high per capita income than in countries with moderate per capita income. This is to be expected since most entrepreneurs in high- and middle-income countries start businesses to take advantage of perceived business opportunities, and there are more such opportunities in high-income countries. Surprisingly, however, the researchers also found that the percentage of people who start businesses is even higher in low-income countries than in high-income ones.

Researchers have found that the percentage of people who start new businesses is much higher in countries with high per capita income than in countries with moderate per capita income. This is to be expected since most entrepreneurs in high- and middle-income countries start businesses to take advantage of perceived business opportunities, and there are more such opportunities in high-income countries. Surprisingly, however, the researchers also found that the percentage of people who start businesses is even higher in low-income countries than in high-income ones.

Researchers have found that the percentage of people who start new businesses is much higher in countries with high per capita income than in countries with moderate per capita income. This is to be expected since most entrepreneurs in high- and middle-income countries start businesses to take advantage of perceived business opportunities, and there are more such opportunities in high-income countries. Surprisingly, however, the researchers also found that the percentage of people who start businesses is even higher in low-income countries than in high-income ones.

Question
3

Which one of the following, if true, would most help to explain the researchers' surprising finding?

In both high- and low-income countries, well over half of new businesses expect to provide jobs for no more than one or two people.

Many governments of high-income countries provide assistance to individuals who want to start businesses, but very few governments of low-income countries do so.

The percentage of new businesses that fail within a few years of being founded is generally no higher in low-income countries than in high-income countries.

In high-income countries, many entrepreneurs who start businesses to take advantage of perceived business opportunities soon discover that the opportunities were illusory.

In low-income countries, most entrepreneurs start businesses because all other employment options are either absent or unsatisfactory.

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