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 cấp dưới
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 giai đoạn bão hoà
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

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

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
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

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 features conditions statements balance

agency shareholders motivation individual corporation
communication strategy external internal

One of the most important (31) features ________________ 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) shareholders _______________ 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) internal ________________. They inform managers of their plans,
and the managers then communicate with the other employees. Negotiations are conducted concerning pay and
working (34) conditions ________________. Managers communicate decisions and orders and try to improve
morale and (35) motivation ________________ through good communication. Employees also communicate with
each other, for example over production and wages.

(36) external ________________ 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) statistical ________________ together with the reports of the Chairman and Directors. Government
departments require (38) strategy ________________ and financial information from the company. An advertising
(39) statements ________________ 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) balance ________________ 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 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.
 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.

3 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.

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.
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) marketing today
48 “… Others become absorbed in the competition …” (Para. 4) Other US companies

Find words from the text which mean:

49. not reacting or paying enough attention to something (Para. 2) unresponsive
50. spreading through or into everything (Para. 3) all-pervasive
51. to trick someone (Para. 3) neither to fool
52. to change something in order to deceive people (Para. 3) falsify
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 sales________________ 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 focus________________ 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
 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

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
B. downturn
C. consumption
D. balance of payments

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

Pure free market theorists argue that the function of a business is to make profits. Milton Friedman, for
1 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.
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 False

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. 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 do 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) ________________ ________________ 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.