The study's main objectives were: to describe management techniques and incentives used to operate successful proprietary vocational schools; to compare these techniques and incentives with those existing at community colleges; and to review Federal policies affecting the utilization of proprietary vocational schools. Data and information for the study were obtained from a survey of existing literature and from interviews with students, faculty, and administrators of more than 20 accredited proprietary schools and two community colleges. The proprietary vocational schools represent a group of diverse sizes, orientations, and financial stabilities. The body of the report, following the summary of findings and recommendations, contains four parts. Part 1 presents a general description of proprietary vocational schools. Part 2 describes the missions, student bodies, and management of proprietary schools, based on case studies of several proprietary schools which were analyzed in detail. Part 3 analyzes the competition between proprietary business schools and community colleges, again based on selected case studies, and draws some conclusions about relative performance. Part 4 addresses public policy questions and research issues which derive from the study's findings, and concludes with specific recommendations related to Federal policy and funding methods. (Author/MW)