Certification in Supplier Diversity Practice Exam

What act established government-wide agency goals for small disadvantaged businesses?

1. Federal Acquisition Streamlining Act

2. Small Business Administration Act

3. Minority Business Development Act

4. Women-Owned Business Act

The correct answer is: Federal Acquisition Streamlining Act

The Federal Acquisition Streamlining Act is the correct answer because it was created to make the federal procurement process more efficient and effective while also establishing specific goals for the participation of small disadvantaged businesses in government contracting. This act set the stage for increased emphasis on ensuring that these businesses have equitable access to government contracts, thus promoting supplier diversity. The act reflects a broader commitment to making sure that small disadvantaged businesses—often underrepresented in federal contracting—receive a fair opportunity to compete for government contracts. By setting government-wide agency goals, it encourages federal agencies to actively engage with and support these businesses, fostering a more inclusive economic environment. In contrast, the other options focus on different aspects of business support or specific types of businesses without the explicit emphasis on government-wide goals for small disadvantaged businesses. The Small Business Administration Act, for example, primarily aims to foster the overall growth of small businesses rather than establish specific goals related to disadvantaged status. The Minority Business Development Act focuses on promoting the development of minority-owned businesses but does not set government-wide agency contracting goals. The Women-Owned Business Act is dedicated specifically to supporting women-owned businesses, rather than small disadvantaged businesses as a whole. Thus, they do not fulfill the criteria established by the question.