3 Match the sentences 1 -2 with their meaning a-b.
1 It should be noted that there are a There are some theorists who believe that.
a few theorists who believe
that this is the right way to do
business.
2 It should be noted that there b It is difficult to find a theorist who believes
are few theorists who believe that.
that this is the right way to do
business.
Business management 4 9
Part 2: Skills development
Exam information I Matching information
In the exam, you may be asked to match specific information, for example, a reason, a
description or an explanation, to the section of a text where it can be found - A, B, C, etc.
Exam tip
Read the questions first, then skim-read the text to get an idea of its structure, and scan
for the specific information. Every paragraph usually has a sentence that summarizes
the main idea(s) in the paragraph (the topic sentence). This sentence may help you.
1 Match the underlined parts in the text opposite to the type of specific information.
[ explanation reason (x3) example comparison condition
explfli/watLoi/t: the oov^av i^ts, that an emoted li/tthe Itadivu^ share -price indices
2a What are the following paragraphs about? Choose a, b or c.
/ paragraph A
a the media b large companies c smaller businesses
// paragraph D
a the reasons why small companies are better than larger ones
b the reasons why the government wants more small businesses
c a list of good points about small companies
iii paragraph E
a the role of policy makers
b the importance of business planning
c tips on improving your business
2 b Now decide which sentence in each of the paragraphs A, D and E is the topic sentence.
3 Underline the key words in these questions and then look for the answers in the text.
1 Which paragraph mentions statistics?
2 In paragraph A, which word indicates that the text will not be about large businesses?
3 In paragraph C, which sentence explains why new and developing small businesses are
crucial to the success of the economy?
4 Which paragraph builds on the same idea as the one in A and C (mentioned in question 5)?
5 0 Get Ready for IELTS: Reading
Unit 7
(A) The business sections of the media tend to focus on large, traditional companies. By
definition, these are high-profile businesses - the companies that are quoted in the
leading share price indices. However, most economists agree that smaller businesses,
particularly new and developing small businesses, are central to the long-term success
of any economy. They argue that the industries of the future will originate in the small
business sector. That is why the United Nations Economic Commission for Europe
describes SMEs (small and medium-sized enterprises, with less than 250 employees)
as 'the engine of economic development'.
(B) In the UK, the Department of Trade and Industry (DTI) reported that the total number of
businesses, including small companies, partnerships and sole traders, rose by 260,000
in 2004 to 4.3 million (source: www.dti.oov.uk). This is up from the previous year and
represents the best figures ever recorded.
(C) This is success for government policy. Successive UK governments have sought to
encourage small business start-ups. Behind the policy is a belief that small businesses
contribute to a stronger economic base, and that they have the ability to thrive in a
competitive global business environment.
(D) The government also encourages small businesses because they are:
• a source of employment
• flexible and innovative
• responsive to gaps in the market
• able to accommodate people with a passion for a product who might not thrive in a
large corporation.
Business planning
(E) Policy makers recognize that it is not sufficient to simply encourage an enterprise
culture. If new entrepreneurs are to succeed, if new businesses are to thrive, then it is
important that they appreciate the central role of planning. A business plan is the basis
of new business development, and it encourages an entrepreneur to think ahead and
plan, as far as possible, for the business to be successful.
(F) ' Writing a business plan will not in itself ensure that a business survives. However, it
is an invaluable exercise, forcing entrepreneurs to go through planning steps to make
sure their business propositions are viable. A business plan draws on concepts, skills
and knowledge, including:
• doing market research to make sure that planned products and services meet
customer needs
• understanding the market by analysing competitors' products, services and prices
• setting clear business aims and objectives
• finding sufficient capital to meet the business's short-term and long-term needs
• deciding on the most suitable structure and form of ownership for the business
Glossary
share price indices: plural of 'share price index': a system by which (the speed of) changes in the value of
share prices is recorded and measured • sole trader, a person who owns their own business and does not
have a partner or any shareholders.
Business management 5 1
Part 3: Exam practice
Questions 1-6
The passage below has nine paragraphs A-l. Which paragraphs mention the following
information? You may use any letter more than once.
1 physical and mental problems that a business owner can face...........
2 leadership and team improvement ideas..........
3 the advantage of not expanding in business...........
4 individuals and larger groups that are available to help people who are new to business
5 the reasons why the more basic jobs in a small company should not be not be carried
out by employers...........
6 external reasons why companies should try to keep their employees' knowledge and
expertise up-to-date...........
Setting up in business
(A) It takes a considerable commitment to set up and run a small
business. Owners must be able to do all the tasks necessary to run
the business or have sufficient funds to buy in appropriate external
help, and even then they must be able to check the quality of the
service they are receiving.
(B) Anyone planning to start a business must be realistic about what
can be achieved, and in what time frame. Entrepreneurs often work extremely long hours,
not just during 'trading' hours, but also after hours doing all the associated paperwork. If
entrepreneurs overwork, they will find it difficult to make good decisions and will lack the
energy to analyse and evaluate marketing and finance data. If an entrepreneur becomes
over tired and over anxious, they can undermine their businesses by giving the impression
that things are bad and the business is just about to close down.
(C) Many organizations provide support networks for entrepreneurs running small businesses.
These networks provide training and access to experienced business mentors for little or
no charge. The Business Link network, funded by Department of Trade and Industry, is one
source of this kind of support. If entrepreneurs are under 30 years of age, the Prince's Trust
also provides training and mentoring for business start-ups. There are various other privately
run business networking groups which can be both fun and mutually supportive.
(D) Owners need to consider four key issues: training, leadership and team development,
delegation and management systems.
(E) Investment in training is necessary to ensure that staff have the skills to do their jobs
efficiently and they can meet the requirements of current legislation such as health and
safety. Staff may also need training to develop skills to meet internationally recognized
quality standards for products and service delivery. Research shows that small and
medium-sized firms often find it very difficult to organize effective training.
5 2 Get Ready for IELTS: Reading
Unit 7
(F) Ideally,