Certification in Supplier Diversity Practice Exam

What characterizes Minority Owned Businesses?

1. Owned by members of majority ethnic or racial groups

2. At least 51% owned and operated by ethnic or racial minority group members

3. Incorporated businesses with minority shareholders

4. No ownership percentage is specified for minorities

The correct answer is: At least 51% owned and operated by ethnic or racial minority group members

Minority Owned Businesses are characterized by being at least 51% owned and operated by individuals who belong to ethnic or racial minority groups. This specific ownership threshold establishes that the business is primarily controlled by those who are considered minorities, which is essential to qualify for various programs and resources aimed at supporting diversity within the business landscape. This definition is rooted in the recognition that ownership and economic control are critical factors in promoting equitable opportunities for underrepresented groups. By ensuring that minority individuals have significant ownership, these businesses can better advocate for their interests and access support designed to enhance their success. Ownership percentages reflect the commitment to not only diversity in ownership but also in leadership, ensuring that decision-making power lies within the community the business intends to engage. This is crucial when discussing supplier diversity, networking opportunities, and access to government contracts, especially those aimed at leveling the playing field for minority populations.