The problem of this study was an analysis of the differences between associate degree and baccalaureate degree nursing school graduates in relation to the functions they were currently performing, their perceptions of the adequacy of their educational preparation for these functions, and their apparent readiness for these nursing functions as reported by employers of nurses. A questionnaire was devised and mailed to a random sample of employers of nurses and to recent graduates of two associate degree and two baccalaureate degree nursing programs in Texas. Graduates were asked to report on the extent of their performance of each of eighty nursing activities as well as their perception of their preparation for each activity. Employers were requested to report the readiness of recent graduates to perform each nursing activity, The eighty activities were categorized into the following five functions: (1) physical care and technical skills, (2) interpersonal relationships, (3) leadership, (4) decision making, and (5) community health care.