EOU-TEST-1-2-English For Business Studies - 3rd Edition [PDF]

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EOU TEST 1 SECTION 1: Vocabulary and Structure (30 marks, 1 mark/answer) 1. Throughout my career, I have ensured that my ________________ successfully executed the strategies developed by senior management, delivered results and maximized revenue. A. suppliers B. subordinates C. investors D. distributors 2. People in ________________ cultures often like to do many things at once. A. linear-active B. multi-active C. reactive D. mixed 3. Businesspeople in ________________ cultures such as Britain, the USA and Germany are generally organized and rational, try to act logically rather than emotionally, plan in advance, and like to do one thing at a time. A. multi-active B. linear-active C. reactive D. hyper-active 4. At the ________________ of the product life cycle, the product's features may have to be changed so that it differs from competing brands, which involves new costs. A. introduction stage B. maturity stage C. growth stage D. decline stage 5. At the ________________ of the product life cycle the price is either maintained, or greatly reduced to liquidate stock if the product is discontinued. A. introduction stage B. growth stage C. maturity stage D. decline stage

6. ________________ are the attributes or characteristics of a product, such as size, shape, quality, price, reliability, etc. A. Product differentiation B. Product features C. Product elasticity D. Product life cycle 7. ________________ means setting a high price for a new product, to make maximum revenue before competing products appear on the market. A. Market research B. Market skimming C. Market opportunities D. Market penetration 8. The possibility of providing a new product or service to satisfy particular needs is called ________________. A. Market variation B. Market opportunity C. Market capitalization D. Market channels 9. ________________ companies focused their energies on changing customers' minds to fit the product – practicing the ‘any color as long as it's black' school of marketing. A. Sales-driven B. Market-driven C. Technology-driven D. Customer-driven 10. ________________ is a period of ending or relaxing of legal restrictions. A. regulation B. deregulation C. repossession D. depositor 11. In order to be a good manager, you have to know how to lead people, how to motivate people, and how to make sure that you are ________________. A. seeing your targets

B. going your targets C. meeting your targets D. looking your targets

B. mortgage C. surplus D. dividend

12. Banks make a profit by charging a higher rate of interest to borrowers than they pay to ________________. A. regulators B. collateral C. depositors D. retailers

18. A balance sheet is a financial statement that ________________. A. reflects what the company owns, owes and what the shareholders put in as equity. B. reflects how much profit the company made in the year from selling their product. C. reflects how many goods were sold by the company and how many customers they have. D. reflects the cash and revenue of a company.

13. ________________ offer interest-free banking. They do not pay interest to depositors or charge interest to borrowers but invest in companies and share the profits (or losses) with their depositors. A. Islamic banks B. Investment banks C. Private banks D. Commercial banks 14. A ________________ is a group of companies, operating in different fields, which have joined together. A. hedge fund B. local marketplace C. Islamic bank D. conglomerate 15. ________________ are certificates of debt issued by governments or companies to raise money A. Shares B. Dividends C. Bonds D. Stocks 16. A ________________ is defined as one with a higher-than-normal credit risk. A. credit crunch B. credit crisis C. subprime borrower D. subprime crisis 17. A ________________ is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. It can be issued as cash payments, as shares of stock, or other property. A. loan

19. ________________ is defined as anything owned by a business – cash, buildings, machines, equipment, etc. A. Liability B. Asset C. Turnover D. Revenue 20. ________________ involves calculating how much an individual or a company will have to pay to the local and national governments. A. Finance accounting B. Tax accounting C. Management accounting D. Cost accounting 21. Patents and trademarks are typical examples of ________________. A. tangible assets B. total equity C. current assets D. intangible assets 22. Managers ________________ of their staff to see whether they are reaching their targets. A. make the decisions B. deal with the crisis C. measure the performance D. allocate the resources 23. ________________ is the loss of value of tangible assets. A. Inventory B. Depreciation

C. Amortization D. Proceeds

A. Grobalization B. Localization C. Globalization D. Glocalization

24. Top managers have to be prepared to ________________ if they occur and then have to make quick decisions. A. set objectives B. allocate resources C. deal with crises D. perform tasks

28. A ________________ is a person who believes that the group is more important than the individual. A. collectivist B. compromise C. confrontation D. connection

25. After an organization has ________________, it has to make sure that it achieves them. A. considered the future B. introduced innovations C. set objectives D. allocated resources

29. ________________ are people of influence or importance with whom you are associated. A. Collectivists B. Confrontation C. Intuition D. Connections

26. Managers have to find the best way to allocate all the human, physical and capital ________________ available to them. A. materials B. resources C. effects D. values 27. ________________ is an invented word combining worldwide and regional concerns.

30. In terms of business across cultures, ________________ assume that rules should be applied to everybody. A. individualists B. universalists C. collectivists D. particularists

SECTION 2: Reading Cloze (20 marks, 2 marks/answer)  Fill in each blank with one suitable word/phrase. You don’t need to use all the words provided. statistical agency communication

features shareholders strategy

conditions motivation external

statements individual internal

balance corporation  

  One of the most important (31) ________________ in any business is communication. Good communications are required at all stages of the business process. Businesses employ, and are owned and run by, various groups of people. Workers, directors and (32) ________________ are three important groups closely involved with a business. Other influential groups include customers, suppliers and the government. Communication takes place between these groups and the individuals who make up the groups. Within individual companies, internal communications occur at, and between the various levels. Directors communicate with one another concerning the company’s overall (33) ________________. They inform managers of their plans, and the managers then communicate with the other employees. Negotiations are conducted concerning pay and working (34) ________________. Managers communicate decisions and orders and try to improve morale and (35) ________________ through good communication. Employees also communicate with each other, for example over production and wages.

(36) ________________ communication occurs when a company’s directors or employees communicate with those individuals and groups who deal with the company. Shareholders receive copies of the company’s financial (37) ________________ together with the reports of the Chairman and Directors. Government departments require (38) ________________ and financial information from the company. An advertising (39) ________________ is consulted about the company’s advertising policies. Customers need to know if goods have not been despatched and suppliers contacted if their goods have not been delivered. Reliable and effective (40) ________________ is one of the key elements which leads to efficient management of a company. SECTION 3: Reading Comprehension (30 marks, 2 marks/answer)

Marketing is everything 1

2

3

4

5

Several decades ago, there were sales-driven companies. These organizations focused their energies on changing customers’ minds to fit the product - practicing the ‘any color as long as it’s black’ school of marketing. As technology developed and competition increased, some companies shifted their approach and became customer driven. These companies expressed a new willingness to change their product to fit customers’ requests practicing the ‘tell us what color you want’ school of marketing. Successful companies are becoming market driven, adapting their products to fit their customers’ strategies. These companies will practice let’s figure out together how and whether color matters to your larger goal’ marketing. It is marketing that is oriented toward creating rather than controlling a market.   The old approach - getting an idea, conducting traditional market research, developing a product, testing the market, and finally going to market - is slow and unresponsive. As the demands on the company have shifted from controlling costs to competing on products to serving customers, the center of gravity in the company has shifted from finance to engineering - and now to marketing.   Marketing today is not a function; it is a way of doing business. Marketing is not a new ad campaign or this month’s promotion. Marketing has to be all-pervasive, part of everyone’s job description, from the receptionists to the board of directors. Its job is neither to fool the customer nor to falsify the company’s image. It is to integrate the customer into the design of the product.   US companies typically make two kinds of mistake. Some get caught up in the excitement and drive of making things, particularly new creations. Others become absorbed in the competition of selling things, particularly to increase their market share in a given product line. Both approaches could prove fatal to a business. The problem with the first is that it leads to an internal focus. Companies can become so fixated on pursuing their R&D agendas that they forget about the customer, the market, the competition. The problem with the second approach is that it leads to a market-share mentality. It turns marketing into an expensive fight over crumbs rather than a smart effort to own the whole pie.   The real goal of marketing is to own the market- not just to make or sell products. Smart marketing means defining the whole pie as yours. In marketing, what you lead you own. Leadership is ownership. That is why marketing is everyone’s job, why marketing is everything and everything is marketing.  

Based on the information in the article, say whether the following statements are True (T), False (F). 41. Sales-driven companies tried to change customer's minds and make them like the products they produced. 42. The main focus of companies shifted from engineering to finance to marketing. 43. The author claims that marketing is to fool the customers and to falsify the company’s image.

44. Marketing today is to integrate the customer into the design of the product. Choose the best answer. 45. What is wrong with focusing on R&D and creating new products? A. You forget about the customer and the competition. B. You forget about the customer, the market and the competition. C. You forget about the customer and the market. 46. What is wrong with focusing on increasing market share? A. It turns the market into crumbs rather than a whole pie. B. It turns marketing into a smart effort to own the whole pie. C. It turns the market share into a whole pie. What does each of the underlined words refer to? 47 “… it is a way of doing business…” (Para. 3)  48 “… Others become absorbed in the competition …” (Para. 4)  Find words from the text which mean: 49. not reacting or paying enough attention to something (Para. 2)  50. spreading through or into everything (Para. 3)  51. to trick someone (Para. 3)  52. to change something in order to deceive people (Para. 3)  53. a person’s particular way of thinking about things (Para 4)  Fill in each gap of these sentences with one suitable word from the text: 54. Samsung can be considered as a ________________ driven business as it creates mobile phones in various colors to suit all tastes of their customers. 55. In terms of marketing, some R&D companies show a weakness as they are so ________________ on the creation of new products. SECTION 4: Listening (20 marks) PART 1: Listen and fill in the gaps (1 mark/answer) So, a company's balance sheet, in principle, is intended to give you the value of the company’s  (56) ________________, but in practice, some assets are very easy to (57) ________________, and some are very difficult to value. So if you hold some (58) ________________ in another company or something, or you hold some money in a bank (59) ________________, this is very easy to value. On the other hand, if your (60) ________________ comprise research and development, or people for that matter, then it's in principle very

difficult to put a value on those things. And when you measure the (61) ________________ of a company, what you're trying to do is measure a change in value, so the (62) ________________ between what a company is worth at the beginning of a year, and what it is (63) ________________ at the end of a year, is the profit that it makes, or the (64) ________________ that it makes. And if it's difficult to measure the value of assets in the first place, it's also difficult to (65) ________________ whether a company's making profit or not.   PART 2: Listen and complete the summary (2 marks/answer) Managers should -  pursue the company goal 66 -  ________________ ________________ for shareholders 67 -  accomplish the ________________ ________________and objective of subordinates 68 -  help ________________ ________________ to develop -  understand the expectation of team members 69 -  try to ________________ ________________ of the company 70 -  help ________________ to ________________ in their team

KEY – EOU TEST 1 Section 1 (30 marks, 1 mark/answer) 1. B. subordinates

17. D. dividend

2. B. multi-active

18. A. reflects what the company owns, owes and

3. B. linear-active

what the shareholders put in as equity.

4. B. maturity stage

19. B. Asset

5. D. decline stage

20. B. Tax accounting

6. B. Product features

21. D. intangible assets

7. B. Market skimming

22. C. measure the performance

8. B. Market opportunity

23. B. Depreciation

9. A. Sales-driven

24. C. deal with crises

10. B. deregulation

25. C. set objectives

11. C. meeting your targets

26. B. resources

12. C. depositors

27. D. Glocalization

13. A. Islamic banks

28. A. collectivist

14. D. conglomerate

29. D. Connections

15. C. Bonds

30. B. universalists

16. C. subprime borrower Section 2 (20 marks, 2 marks/answer) 31. features

35. motivation

39. agency

32. shareholders

36. external

40. communication

33. strategy

37. statements

34. conditions

38. statistical

Section 3 (30 marks, 2marks/answer) Reading comprehension 41. T 42. F 43. F 44. T 45. B. You forget about the customer, the market and the competition. 46. A. It turns the market into crumbs rather than a whole pie. 47. marketing / marketing today 48. U.S. companies / US companies 49. unresponsive 50. all-pervasive / all pervasive

51. to fool / fool 52. to falsify / falsify 53. mentality 54. customer 55. fixated Section 4 Part 1 (10 marks, 1 mark/answer) CD2 Track 2 56. business

61. profit

57. value

62. difference

58. shares

63. worth

59. account

64. loss

60. assets

65. measure

Part 2 (10 marks, 2 marks/answer) CD1 Track 2 66. maximize value 67. personal goals 68. young professionals 69. match goals 70. people … develop

EOU TEST 2 SECTION 1: Vocabulary and Structure (30 marks, 1 mark/answer) 1. ________________ is referred to as government actions concerning taxation and public expenditure A. Monetary policy B. Economic policy C. Fiscal policy D. Tax policy 2. During a(n) ________________, the demand for goods and services will decline and the economy will begin to work below its potential. A. upturn B. boom C. downturn D. expansion 3. The fact that people start saving money and consuming less leads to a ________________ in demand, production, and employment. A. equilibrium B. surplus C. rise D. fall 4. The company increased its production of the new shoes after a recent advertising campaign made the ________________ for the product increase rapidly. A. trough B. demand C. deficit D. surplus 5. The difference between the funds a country receives and those it pays for all internal transactions is called ________________. A. balance of payments B. consumption decisions C. equilibrium D. gross domestic product 6. The total market value of all the goods and services produced in a country during a given period is called ________________. A. gross domestic product B. balance of payments

C. consumptions D. demand decline 7. ________________ is the economic theory that supports governmental intervention in the economy, to counteract the business cycle. A. Keynesianism B. Monetarism C. Classical economic theory D. Friedman theory 8. The period during which radical innovations destroy established companies or industries is called ________________. A. creative destruction B. technological invention C. trough D. endogenous 9. If the economy's turning down, it may make sense for governments to have ________________, and to keep expenditure in the economy. A. budget surplus B. budget deficit C. budget equilibrium D. budget supply 10. The upward and downward movement of aggregate output produced in the economy is referred to as the ________________. A. long-lasting recession B. negative growth C. business cycle D. monetary expansion 11. Groups of people with a stake in or an interest in or a claim on the firm are called ________________. A. stockholders B. shareholders C. bondholders D. stakeholders

12. Countries where taxes are low, where multinational companies often set up their head offices, are known as ________________. A. tax launderers B. tax harbors C. tax havens D. tax evasion 13. The model where companies have an obligation to maximize profits because shareholders expect the maximum return on their investments is called ________________. A. stockholder model B. stakeholder model C. caveat emptor D. classical theory 14. The community or outside society can be referred to as ________________ stakeholders. A. interval B. internal C. external D. extended 15. The contract requires managers ________________ to high standards of personal ethics. A. to eliminate B. to maximize C. to provide D. to conform 16. An economic system in which anyone can raise capital, form a business, and offer goods or services is called ________________. A. free society B. free expenditure C. free enterprise D. free corporate 17. It is clearly shown that their products are designed to ________________ profit rather than behave according to consumer expectations. A. provide B. maximize C. optimize D. localize

18. Selling your company's secrets to a rival is called industrial ________________. A. fraud B. espionage C. pollution D. trading 19. ________________ means a country's ability to produce particular goods more efficiently than some other countries. A. Absolute advantage B. Comparative advantage C. Relative advantage D. Competitive advantage 20. ________________ means restricting imports by way of trade barriers such as tariffs and quotas. A. Consumerism B. Strategic industry C. Protectionism D. Absolute advantage 21. ________________ is referred to as a maximum quantity of goods of a specific kind that can be imported into a country. A. A quota B. An output C. A tariff D. A sales target 22. ________________ helps to identify a product made by a particular producer and cannot be legally used by anyone else. A. A generic B. A trademark C. A brand D. A symbol 23. A tax collected at each stage of production, excluding the already-taxed costs from previous stages, is called a/an ________________. A. added-value tax B. sales tax C. value-added tax D. capital gains tax 24. WTO policies allow rich countries to ________________ heavily subsidized industrially

produced food in poor countries, which damages local production. A. dump B. copy C. protect D. deny

C. calculation D. collaboration

25. ________________ is referred to as basic systems and services such as transport and power supplies. A. Facilities B. Infrastructure C. Superstructure D. Asset 26. ________________ penalizes all income-generating activity, which makes everyone poorer. A. Value-added tax B. Income tax C. Inheritance tax D. Capital gains tax

28. He also maintained that increases in public expenditure would lead to increased ________________ and higher unemployment. A. intervention B. taxation C. proportion D. restriction 29. The business cycle or trade cycle is a ________________ feature of market economies: GDP alternately grows and contracts. A. temporary B. permanent C. alternative D. expansive 30. During a(n) ________________, parts of the economy expand to the point where they are working at full capacity. A. upturn B. downturn C. consumption D. balance of payments

27. Unfettered free markets can ensure the long- term optimal ________________ of resources and longterm economic growth. A. provision B. allocation SECTION 2: Reading Cloze (20 marks, 2 marks/answer) 

Fill in each blank with one suitable word/phrase. You don’t need to use all the words provided. designing

protecting

advanced

committed

environment

impact

schedule

related

economic

business

managed

progression

 

Business and the environment These days in business, people have to face many challenging questions when (31) ________________ and implementing new projects in undeveloped areas of the countryside. One issue which has to be faced is whether it is possible to introduce new technology without destroying the local (32) ________________. (33) ________________ development and environmental conservation are often seen as natural enemies. It is unfortunate that in the past this has often been true, and it has been necessary to choose between running the project or (34) ________________ the environment. However, by taking environmental considerations seriously at an early stage in a project, companies can significantly reduce any (35) ________________ on local plants and animals. For example, in southern Africa, a company called CEL was asked to put up 410 km of a power transmission line without disturbing the rare birds which inhabit that area. The project was carried out with minimal disturbance last

summer. What may surprise many (36) ________________ people is the fact that this consideration for local wildlife did not in any way slow down the project. Indeed, the necessary advance planning, combined with local knowledge and (37) ________________ technology, meant that the project was actually completed ahead of (38) ________________. CEL was contracted to finish the job by October and (39) ________________ to do so two months earlier. CEL is one of those companies which is (40) ________________ to the principle of environmental conservation. Many other companies have yet to be convinced of the importance of balancing the needs of people with those of the environment. However, it may be the only realistic way forward.

SECTION 3: Reading Comprehension (30 marks, 2 marks/answer)  

Profits and social responsibility  1 Pure free market theorists argue that the function of a business is to make profits. Milton Friedman, for example, argued that any corporate action inspired by “social responsibility”, rather than the attempt to maximize profits, is “unbusinesslike”. In an article called “The social responsibility of business is to increase its profits”, he argued that people who say that business has “responsibilities for providing employment, eliminating discrimination, avoiding pollution”, and so on, are “undermining the basis of a free society”. For Friedman, “only people can have responsibilities”, and not corporations:   2 In a free enterprise, private-property system, a corporate executive is an employee of the owners of the business. He has direct responsibility to his employers. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible, while of course conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom.   3 Therefore, “to say that the corporate executive has a “social responsibility” in his capacity as businessman” is to say that “he is to act in some way that is not in the interest of his employers”. Because if an executive makes “social” expenditures he is spending someone else’s money ... Insofar as his actions in accord with his “social responsibility” reduce returns to stockholders, he is spending their money. Insofar as his actions raise the price to customers, he is spending the customers’ money. Insofar as his actions lower the wages of some employees, he is spending their money.   4 Furthermore, such actions are “undemocratic” as they involve corporations taking on responsibilities that should be the government’s: taxation and expenditure, and solving social problems. If the elected government is not taking certain actions, it is because the voters did not want it to do so. Any such action “harms the foundations of a free society” and reveals an unfortunate “suicidal impulse” in businessmen.   5 Friedman does not seem to consider the possibility that stockholders might prefer to receive lower dividends but live in a society with less pollution or less unemployment and fewer social problems.   6 An alternative view to the “stockholder model” exemplified by Friedman’s article is the stakeholder model. According to this approach, business managers have responsibilities to all the groups of people with a stake in or an interest in or a claim on the firm. These will include employees, suppliers, customers and the local community, as well as the stockholders. Proponents of the stakeholder approach argue that all these groups should be represented on a company’s board of directors.   Based on the information in the article, say whether the following statements are True (T), False (F). 41. Free market theorists think that people do business to make money.

42. Friedman believes both people and corporations can have responsibilities. 43. Friedman describes socially responsible actions of corporations as undemocratic. 44. Friedman argues that the social responsibility of business is to solve social problems. Choose the best answer. 45. According to Friedman, in what way are “social responsible” actions by businesses “undemocratic”? A. Because this is generally what the owners of the business want, and what they employ executives to do. B. Because they involve doing things that should be done by governments. C. Because only people can have responsibilities, and not corporations. 46. According to the text, what other desires might stockholders have, apart from making as much money as possible? A. Lower dividends, higher prices, or lower wages. B. A society with less pollution or less unemployment and fewer social problems. C. A government that takes on social responsibilities. What does each of the underlined words refer to? 47 “… he argued that people who say that business has …” (Para. 1) 48 “… to say that he is to act in some way that is not …” (Para. 3) Find words from the text which mean: 49. complying with or following (rules, etc.) (Para. 2)  50. treating some people in a worse way than you treat other people (Para. 1)  51. to make something weaker (Para. 1)  52. to cause damage to (Para. 4)  53. according to generally accepted beliefs based on morals (Para. 2)  Fill in each gap of these sentences with one suitable word from the text: 54. The new factory will ________________ employment for about a hundred local people. 55. According to the ________________ model, business managers have responsibilities to all the groups of people with a stake in or an interest in or a claim on the firm. SECTION 4: Listening (20 marks) PART 1: Listen and fill in the gaps. (1mark/answer)   But let's think what happens there. I'm working in a cloth factory in a (56) ________________ country. We move from going from no trade to (57) ________________ trade. My country specializes just in computers. What's going to happen, I'm going to (58) ________________ my job. OK. Now that may be a big (59) ________________,

governments may be concerned about workers losing jobs in certain sectors. Now we could argue in theory I just need to (60) ________________ my job and become working in computing. It may be very (61) ________________ for me to do that. I may be in the wrong part of the country, I may not have the (62) ________________ skills and so on. Basically what happens with free trade is that many many people (63) ________________ and a few people may lose and they may lose big time, and if we’re concerned about those people we may want to have some (64) ________________ process, we may be concerned about (65) ________________ free trade.

PART 2: Listen and complete the summary (2 marks/answer) Q: What recent changes have you noticed in the job market? A: The most unique change in the job market recently is the intervention of (66) ________________ ________________ and websites. As a global business, we can recruit roles that are based wherever. Besides, the candidate or (67) ________________ ________________ do have a large number of choice. For example, you can go online at home to look for roles and jobs that are advertised worldwide. It’s an absolutely (68) ________________ ________________ for both candidates and employers. In terms of the recruitment market, there has been an increasing need for interim and temporary employees. The fact is that many organizations will continue to experience change, and quite often, (69) ________________ ________________ will need to be brought in on project bases to handle specific projects in areas such as IT, (70) ________________ ________________ … and people will keep looking for project management.

KEY – EOU TEST 2 Section 1 (30 marks, 1mark/answer) 1. C. Fiscal policy

16. C. free enterprise

2. C. downturn

17. B. maximize

3. D. fall

18. B. espionage

4. B. demand

19. B. Comparative advantage

5. A. balance of payments

20. C. Protectionism

6. A. gross domestic product

21. A. A quota

7. A. Keynesianism

22. B. A trademark

8. A. creative destruction

23. C. value-added tax

9. B. budget deficit

24. A. dump

10. C. business cycle

25. B. Infrastructure

11. D. stakeholders

26. B. Income tax

12. C. tax havens

27. B. allocation

13. A. stockholder model

28. B. taxation

14. C. external

29. B. permanent

15. D. to conform

30. A. upturn

Section 2 (20 marks, 2 marks/answer)  31. designing 32. environment 33. economic 34. protecting 35. impact 36. business 37. advanced 38. schedule 39. managed 40. committed Section 3 (30 marks, 2 marks/answer) 41. T 42. F 43. T 44. F 45. B 46. B

47. Milton Friedman / Milton / Friedman 48. the corporate executive / corporate executive 49. conforming to 50. discriminating / discrimination 51. to undermine / undermine 52. to harm / harm 53. ethical 54. provide 55. stakeholder Section 4 Part 1 (10 marks, 1mark/answer) CD2 Track 23 56. developed 57. free 58. lose 59. concern 60. reallocate 61. difficult 61. right 63. gain 64. transition 65. unfettered Part 2 (10 marks, 2marks/answer) 66. online recruitment 67. job seekers 68. unique opportunity 69. specialist people 70. human resources