SECTION 1: Vocabulary and Structure (30 marks, 1 markanswer) 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. linearactive B. multiactive C. reactive D. mixed
EOU TEST SECTION 1: Vocabulary and Structure (30 marks, mark/answer) 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 People in cultures often like to many things at once A linear-active B multi-active C reactive D mixed 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 one thing at a time A multi-active B linear-active C reactive D hyper-active 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 C Product elasticity D Product life cycle 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 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 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 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 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 are the attributes or characteristics of a product, such as size, shape, quality, price, reliability, etc A Product differentiation B Product features 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 13 offer interest-free banking They 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 B mortgage C surplus D dividend 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 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 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 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 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 A Grobalization B Localization C Globalization D Glocalization B compromise C confrontation D connection 29 are people of influence or importance with whom you are associated A Collectivists B Confrontation C Intuition D Connections 30 In terms of business across cultures, assume that rules should be applied to everybody A individualists B universalists C collectivists D particularists 28 A is a person who believes that the group is more important than the individual A collectivist SECTION 2: Reading Cloze (20 marks, 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, marks/answer) Marketing is everything 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 True False 42 The main focus of companies shifted from engineering to finance to marketing True False 43 The author claims that marketing is to fool the customers and to falsify the company’s image True False 44 Marketing today is to integrate the customer into the design of the product True False 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 D You forget about the market and the competition 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 marketing into an expensive competition over small targets D 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 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 Section (30 marks, mark/answer) B subordinates 17 D dividend B multi-active 18 A reflects what the company owns, owes and B linear-active what the shareholders put in as equity B maturity stage 19 B Asset D decline stage 20 B Tax accounting B Product features 21 D intangible assets B Market skimming 22 C measure the performance B Market opportunity 23 B Depreciation 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 (20 marks, marks/answer) 31 features 35 motivation 39 agency 32 shareholders 36 external 40 communication 33 strategy 37 statements 34 conditions 38 statistical Section (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 Part (10 marks, mark/answer) 56 business 61 profit 57 value 62 difference 58 shares 63 worth 59 account 64 loss 60 assets 65 measure Part (10 marks, marks/answer) 66 maximize value 67 personal goals 68 young professionals 69 match goals 70 people … develop EOU TEST SECTION 1: Vocabulary and Structure (30 marks, mark/answer) is referred to as government actions concerning taxation and public expenditure A Monetary policy B Economic policy C Fiscal policy D Tax policy 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 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 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 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 The period during which radical innovations destroy established companies or industries is called A creative destruction B technological invention C trough D endogenous 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 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 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 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 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 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 incomegenerating activity, which makes everyone poorer A Value-added tax B Income tax C Inheritance tax D Capital gains tax 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 27 Unfettered free markets can ensure the long- term optimal of resources and longterm economic growth A provision B allocation C calculation D collaboration 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 28 He also maintained that increases in public expenditure would lead to increased and higher unemployment A intervention SECTION 2: Reading Cloze (20 marks, marks/answer) Fill in each blank with one suitable word/phrase You don’t need to use all the words provided designing environment economic protecting impact business advanced schedule managed committed related 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 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, marks/answer) Profits and social responsibility 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: 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 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 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 so Any such action “harms the foundations of a free society” and reveals an unfortunate “suicidal impulse” in businessmen 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 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 business to make money True False 42 Friedman believes both people and corporations can have responsibilities True False 43 Friedman describes social responsible actions of corporations as an undemocraticy True False 44 Friedman argues that the social responsibility of business is to solve social problems True Choose the best answer False 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 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 making something weaker (Para 1) 52 causes 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) 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 that I may be in the wrong part of the country, I may not have the (62) 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) 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 Section (30 marks, 1mark/answer) C Fiscal policy 16 C free enterprise C downturn 17 B maximize D fall 18 B espionage B demand 19 B Comparative advantage A balance of payments 20 C Protectionism A gross domestic product 21 A A quota A Keynesianism 22 B A trademark A creative destruction 23 C value-added tax 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 (20 marks, marks/answer) 31 designing 32 environment 33 economic 34 protecting 35 impact 36 business 37 advanced 38 schedule 39 managed 40 committed Section (30 marks, 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 discrimination 51 undermine 52 harms 53 ethical 54 provide 55 stakeholder Section Part (10 marks, 1mark/answer) 56 developed 57 free 58 lose 59 concern 60 reallocate 61 difficult 61 right 63 gain 64 transition 65 unfettered Part (10 marks, 2marks/answer) 66 online recruitment 67 job seekers / job seeker 68 unique opportunity 69 specialist people 70 human resources ... 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 ... 21 A A quota A Keynesianism 22 B A trademark A creative destruction 23 C value-added tax B budget deficit 24 A dump 10 C business cycle 25 B Infrastructure 11 D stakeholders 26 B Income tax 12 ... 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 (20 marks, marks/answer) 31 designing 32 environment