Certification in Supplier Diversity Practice Exam

Protege firms are typically characterized by which of the following?

1. Large multinational corporations

2. Small disadvantaged business concerns

3. Established service providers

4. Startups with high revenue

The correct answer is: Small disadvantaged business concerns

Protege firms are typically small disadvantaged business concerns that are part of mentoring programs designed to help them grow and succeed. These programs, often established through partnerships with larger mentor firms, aim to provide guidance, resources, and support to enhance the capabilities and competitiveness of the protege. The focus on small disadvantaged businesses highlights the intent of these mentoring relationships to address the unique challenges faced by these firms, such as limited access to capital, markets, and networking opportunities. By working with established firms, protege firms can gain valuable insights and experience that enable them to better navigate the business landscape and ultimately thrive in competitive environments. The other choices—large multinational corporations, established service providers, and startups with high revenue—do not align with the fundamental principle of what constitutes a protege firm in the context of supplier diversity and mentoring relationships. These categories typically do not require the same level of support and mentorship aimed at overcoming disadvantages in the business environment, which is a key characteristic of protege firms.