End of Unit Test 1 (70 Minutes) : SECTION 1: Vocabulary and Structure (30 Marks, 1 Mark/answer)
End of Unit Test 1 (70 Minutes) : SECTION 1: Vocabulary and Structure (30 Marks, 1 Mark/answer)
End of Unit Test 1 (70 Minutes) : SECTION 1: Vocabulary and Structure (30 Marks, 1 Mark/answer)
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
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 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
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
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
28. A ________________ is a person who believes that the group is more important than the
individual.
A. collectivist 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
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.
2 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.
4 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.
5 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. T
42. The main focus of companies shifted from engineering to finance to marketing. F
43. The author claims that marketing is to fool the customers and to falsify the company’s image. F
44. Marketing today is to integrate the customer into the design of the product.T
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.
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
Part 1 (10 marks, 1 mark/answer)
56. business 61. profit
57. value 62. difference
58. shares 63. worth
59. account 64. loss
60. assets 65. measure.
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 C. equilibrium
B. consumption decisions 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 C. consumptions
B. balance of payments D. demand decline
7. ________________ is the economic theory that supports governmental intervention in the economy, to
counteract the business cycle.
A. Keynesianism C. Classical economic theory
B. Monetarism D. Friedman theory
8. The period during which radical innovations destroy established companies or industries is called
________________.
A. creative destruction C. trough
B. technological invention 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
________________.
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 C. tax havens
B. tax harbors 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 C. caveat emptor
B. stakeholder model D. classical theory
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
19. ________________ means a country's ability to produce particular goods more efficiently than some other
countries.
A. Absolute advantage C. Relative advantage
B. Comparative advantage D. Competitive advantage
20. ________________ means restricting imports by way of trade barriers such as tariffs and quotas.
A. Consumerism C. Protectionism
B. Strategic industry D. Absolute advantage
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 income-generating activity, which makes everyone poorer.
A. Value-added tax B. Income tax C. Inheritance tax D. Capital gains tax
27. Unfettered free markets can ensure the long- term optimal ________________ of resources and long- term
economic growth.
A. provision B. allocation C. calculation D. collaboration
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 C. consumption D. balance of
B. downturn payments
(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.
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
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 social responsible actions of corporations as an undemocraticy.
44. Friedman argues that the social responsibility of business is to solve social problems.
46. According to the text, what other desires might stockholders have, apart from making as much money as
possible?
Section 4
Part 1 (10 marks, 1 mark/answer)
56. business 61. profit
57. value 62. difference
58. shares 63. worth
59. account 64. loss
60. assets 65. measure.