Sample TEST1 – HP4 – EXAM IN ENGLISH FOR BUSINESS STUDIES SECTION 1: Vocabulary and Structure (30 – Studocu

EXAM IN ENGLISH FOR BUSINESS STUDIES

SECTION 1: Vocabulary and Structure (30 marks, 1 mark/answer)

Make the best choice

1. The power of money has become __________
   in today’s business world, which can
   unfortunately contribute to unethical
   decisions.
   A. pervading
   B. pervasive
   C. pervaded
   D. pervasion
2. The __________ strategy was to target the
   heads of the household as they had the final
   say on where the disposable income would be
   spent.
   A. promotional
   B. promoting
   C. promoted
   D. promotive
3. To __________ is to make a deal between
   different parties where each party reduces
   demands or changes their opinions in order to
   agree.
   A. deal with
   B. confront
   C. complain
   D. compromise
4. People in __________ cultures are good at
   changing plans.
   A. multi-active
   B. reactive
   C. linear-active
   D. collective
5. It’s not fair to make __________ out of loans
   to poor students.
   A. changes
   B. profits
   C. efforts
   D. messes
6. The President has accused two cabinet
   ministers of working secretly to ________ his
   position.
   A. undermine
   B. undergo
   C. undertake

D. underlie
7. A person such as an employee, customer or
citizen who is involved with an organization,
society, etc. and therefore has responsibilities
towards it and an interest in its success is a(n)
__________.
A. account holder
B. shareholder
C. stockholder
D. stakeholder
8. A __________ is an amount of a company’s
profits that is paid to people who own shares
in the company.
A. loan
B. mortgage
C. dividend
D. surplus
9. __________ is the process of designing the
products or services to benefit a local market
while at the same time developing and
distributing them on a global level.
A. Globalization
B. Localization
C. Glocalization
D. Grobalization
10. He was employed to __________
the computerization of records.
A. integrate
B. motivate
C. supervise
D. achieve
11. __________ is the extra money that you pay
if you have borrowed money, or the extra
money that you receive if you have money in
some types of bank account.
A. Investment
B. Intangible
C. Interest
D. Income
12. _____________ is the difference between the
funds a country receives and those it pays for
all international transactions

A. Balance sheet
B. Balance of payments
C. Balance of trade
D. Balance outstanding
13. It is difficult to __________ the success of the
campaign at this stage.
A. measure
B. allocate
C. include
D. classify
14. __________ is the process of dividing a broad
consumer or business market, normally
consisting of existing and potential customers,
into sub-groups of consumers based on some
type of shared characteristics.
A. Market expansion
B. Market segmentation
C. Market penetration
D. Market promotion
15. All the companies or individuals
(‘middlemen’) involved in moving goods or
services from producers to consumers are
called _______________.
A. vehicles
B. distribution couriers
C. transportations
D. distribution channels
16. __________ is a marketing process that
showcases the differences between products.
A. Product variation
B. Product marketing
C. Product differentiation
D. Product segmentation
17. Some car manufacturers, food retailers and
department stores now offer products like
personal loans, credit cards and insurance.
Technically these are not banks but
__________.
A. credit crunch
B. non-bank financial intermediaries
C. traditional investment funds
D. stockbroking management services

18. __________ are private investment funds for
    wealthy investors that use a variety of risky
    investing strategies than traditional
    investment funds, in order to achieve higher
    returns.
    A. Non-bank financial intermediaries

B. Hedge funds
C. Stockbrokers
D. Conglomerates
19. More resources are being __________ to the
project.
A. divided
B. separated
C. allocated
D. conformed
20. __________ is a strategy for setting a low
price to try to sell a large volume and increase
market share of a particular product or
service.
A. Market penetration strategy
B. Market development strategy
C. Product development strategy
D. Product expansion strategy
21. __________ measures the responsiveness of
the quantity demanded or supplied of a good
to a change in its price.
A. Price differentiation
B. Price response
C. Price elasticity
D. Price adaptivity
22. At the , prices may have to be
reduced because competitors are established
in the market, but companies try to defend
their market share while also maximizing
profit.
A. introduction stage
B. growth stage
C. maturity stage
D. decline stage
23. A statement showing the value of a business’s
assets, its liabilities, and its capital or
shareholders’ equity is called a(n)_
A. income statement
B. cash flow statement
C. balance sheet
D. financial record
24. The _________ account shows if a company
is receiving more money than it’s spending.
A. profit and expense
B. profit and loss
C. profit and share
D. profit and fund
25. LeoStone PLC has declared __________ after
a year of heavy pre-tax losses.
A. bankruptcy

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 (40 marks)

The Business Cycle

Expansion and contraction

All market economies have periods when consumption – spending on goods and services – rises.
Consumers buy more, companies invest more, and production, income, profits and employment
increase. These periods are always followed by periods when spending and investment fall, and
unemployment rises. This is the business cycle.

A period during which economic activity increases and the economy is expanding is an upturn or
upswing. If it lasts a long time it is called a boom. The highest point of the business cycle is a peak,
which is followed by a downturn, during which the amount of economic activity decreases. If the
economy keeps contracting for more than six months, the downswing is called a recession. A serious,
long-lasting recession is called a depression or a slump. The lowest point of the business cycle is a
trough, which is followed by a recovery, when economic activity increases again, and a new cycle
begins.

Fiscal policy

Governments and central banks use fiscal policy, which involves changing the levels of government
expenditure and taxation to try to limit the extent of the business cycle. If an economy is moving into a
recession, the government might have a reflationary fiscal policy. This means trying to stimulate the
economy by increasing government spending, or by cutting levels of direct or indirect tax so that
individuals and companies have more money to spend.

If an economy is overheating – expanding too quickly – it means that industry is working at full capacity
and producing as much as it possibly can. Because demand is greater than supply, leading to rising
prices and inflation, the government might have deflationary fiscal policy. This means trying to cool
down the economy: reducing the amount of economic activity by raising tax rates or cutting
government expenditure. This reduces the level of demand in the economy and helps to reduce inflation.

Monetary policy

Governments or central banks can also use monetary policy – changing interest rates and the level of the
money supply – to influence the level of economic activity. They can boost or increase economic
activity if the economy is in a downturn by reducing interest rates and allowing the rate of growth of the
money supply to increase. Alternatively, if the economy is growing too fast and causing inflation, they
can slow it down by increasing interest rates and reducing the rate of growth of the money supply.

The main reason for having an independent central bank is to prevent governments from creating a
political business cycle – a cycle that will be at a high point at the time of the next election.
Governments can do this by beginning their periods of office with a couple of years of policies designed
to stop the economy from growing, followed by tax cuts and monetary expansion in the two years
before the next election. This policy, sometimes called boom and bust, helps the government get re-

elected but is not good for economic stability. An independent central bank makes this less likely to
happen.

Based on the information in the article, say whether the following statements are True (T), or
False (F).

41. If the government thinks the economy is contracting too much, it can cut taxes and increase its
    spending.

42. If an economy is overheating, it means that industry is working below its potential.

43. Monetary policy involves interest rates and the money supply.

Choose the correct answer:

44. What should the government do if the economy is growing too quickly?

A. raise tax and cut its expenditure

B. cut tax and increase its expenditure

C. raise tax and raise its expenditure

45. A recession is a period when….

A. the economy keeps contracting for less than six months.

B. the economy keeps expanding for more than six months.

C. the economy keeps contracting for more than six months.

What does each of the underlined words refer to?

46. “… by a downturn, during which the amount of economic activity decreases …” (para 2)

47. “.. as much as it possibly can …” (para 4)

48. “… causing inflation, they can slow it down by increasing interest rates and reducing …” (para 5)

Find words from the text which mean:

49. purchasing and using goods and services

50. the willingness and ability of consumers to purchase goods and services

51. government actions concerning taxation and public expenditure

52. the total amount of money available in an economy at a particular time

53. the money collected by the government from the income of individuals and businesses

Fill in each gap of these sentences with one suitable word FROM THE ARTICLE:

54. __________ policy, including setting interest rates, is designed to maintain financial stability.

55. During a(n) __________, parts of the economy expand to the point where they are working at full
    capacity.

KEY

SECTION 1

1. B pervasive 02. A.
   promotional

03. D

compromise

4. A multi-active 05. B. profits

5. A undermine 07. D.
   stakeholder

6. C. dividend 09. C glocalization 10. C. supervise

7. C. interest 12. B balance of
   payments

8. A. measure 14. B. market
   segmentation

9. D. distribution
   channels

10. C. product
    differentiation

11. B. non-bank
    financial
    intermediaries

12. B hedge
    funds

13. C. allocated 20. A. market
    penetration

14. C. price
    elasticity

15. C maturity
    stage

16. C. balance
    sheet

17. B. profit and
    loss

18. A bankruptcy

19. A. unfettered 27. A dividend 28. A recession 29. C tax havens 30. A. Shareholders’
    equity

SECTION 2

31. features

32. shareholders

33. strategy

34. conditions

35. motivation

36. external

37. statements

38. statistical

39. agency

40. communication

SECTION 3

41. TRUE

42. FALSE

43. TRUE

44. A

45. C

46. a downturn

47. industry

48. governments or central banks

49. consumption

50. demand

51. fiscal policy

52. money supply

53. tax

54. monetary

55. upturn/upswing/boom

SECTION 4

56. loans

57. collateral

58. management

59. distributing

60. diversified

61. scalable

62. conventional

63. purpose

64. microcredit

65. positive

AUDIO SCRIPTS

… Microfinance schemes started with several NGOs and social enterprises, for example Grameen Bank

in Bangladesh. They distribute very small loans to poor people, often without financial collateral. But

they use some kind of different collateral, sometimes it can be social collateral, so they create a group of

people and within the group, people help each other to repay the loan, but it’s usually a very small

amount of money, and from the bank’s point of view it actually provides a unique risk-management

tool. Of course, distributing loans to poor people sounds very risky, but because we are talking about a

large number of people, with a very small amount of money, it actually creates a very nice portfolio in

which the risk can be diversified. NGOs and social enterprises proved that these kinds of schemes can

be scalable, and the poor people are actually repaying the loans, so now the conventional banks like

Citibank and Barclays are taking part in these schemes , not for the purpose of doing good only, they are

actually doing it as part of their business. They are developing their microfinancing and microcredit