Firms that offer private tutoring and standardized-test preparation are scrambling to cash in on what could be a multibillion-dollar bonanza created by the No Child Left Behind Act, which requires public schools to expose students to an unprecedented battery of assessments and offer tutoring and remedial instruction to those who fail.

Districts nationwide have turned to the private sector for help complying with the law, and in doing so have created a "supplementary educational services" industry that barely existed five years ago, executives said. Princeton Review Chief Executive John Katzman said the...

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