You are on page 1of 9

Test 13



Match the words with their corresponding definitions. (12%)

1. niche
a. competitors
2. assembled
b. happening every year
3. potential
c. fail
4. chairperson
d. supply goods to retailers
5. validity
e. similarities
6. annual
f. an unusually large business organization
7. payroll
g. correctness
8. distribute
h. particular market
9. flop
i. possible opportunities
10. parallels
j. president of a board of directors
11. giant
k. a list of employees and the wages they are paid
12. rivals
l. put together
Fill in the blanks according to the first given letters. (18%)
Many large businesses in the UK are 1p_____ limited companies (plc), which
means that the public can buy and sell their shares on the 2s_____ exchange.
Examples include Mark & Spencer, British Telecom and the National Westminster
Bank. The minimum share 3c_____ for a public limited company is 50,000, so
many new businesses are likely to take one of the following forms.
Sole Trader or Sole 4P_____ (UK)
The simplest way of starting a business. You are self-employed and 5e_____
responsible for all aspects of the management of your business.
Partnership (UK)
Two or more people starting a business together can set up a partnership. All
partners are responsible for the 6d_____ of the partnership, and 7p_____ and
l_____ are shared.

P_____ Limited Company (UK)

A company can be formed with a minimum of two people becoming its 10s_____.
They must appoint a 11d_____ and a company 12s_____. If the company goes out
of business, the responsibility of each shareholder is limited to the amount that
they have 13c_____; they have limited 14l_____. Such a company has Ltd
(Limited) after its name.
In the US, businesses take the same basic forms. However, American companies

are registered or 15i_____ with the authorities in the state where they have their
h_____. The abbreviations Inc and 17C_____ refer to such companies. To sell
shares to the public they must 18a_____ to the Securities Exchange Commission.
Reading (34%)
Questions 1-12
There are 2 passages below. Each passage is followed by some questions or
unfinished statements. For each of them there are four choices marked A, B C and
D. Decide on the best choice.
Passage 1

When you set up your own business, unless you work from home you will need
somewhere to operate from, some premises for your offices or factory. For a new
business, the only realistic options are buying or leasingrentingexisting property.
The main advantage of buying property is that you can use it as you like, provided you
stay within the law. If you buy a property in good condition, and at the right price, it
could eventually prove an excellent defense against inflation if you choose to sell it later.
However, this cannot be counted upon, as property values may fall, and in general, the
risk capital that you have is likely to give a much greater return if it is employed in the
business rather than invested in the property.
Another downside of buying is the difficulty of raising the purchase money. Commercial
lenders such as High Street banks tend to be very cautious with potential borrowers,
particularly with new businesses, and will usually only give advances of up to around
70% of the purchase price. This shortfall means that a considerable amount of money will
be required from other sources if a purchase is to go ahead. You will also have to be sure
that your business can generate enough profit to pay the interest on the loan.
If you decide to rent, on the other hand, one advantage is that there is little capital outlay
in acquiring occupation of the building. In many cases, it is just a question of fitting it out
with equipment, furniture, etc. which you would have to do anyway with a purchased
If you rent a building, you and your landlord will sign a lease committing you to renting
the premises for a specific period, usually between three and twenty years. When your
lease expires, you have the right to stay, provided you and your landlord agree on the
terms of a new lease. There are two exceptions to this rule, however. If you have been a
bad tenant, there are means by which the landlord can get you out. More importantly, if
the landlord wants to occupy his own premises for his own purposes, or wants to
redevelop, then he normally has the right to do so, and you will have to leave. He will
generally have to pay you compensation, the amount of which will be related to the value
of the property and the length of time that you have been renting.
A lease also includes terms covering certain rights and obligations. It commits you to
looking after the property and not making any alterations or changing its use without the

landlords approval. It will normally also allow for regular rent reviews. There may be a
clause in the lease permitting you to sell your outstanding lease to another party.
Do not consider renting a space larger that your business needs, with the intention of subletting the extra space to someone else, even if the rent you intend them to pay you may
seem attractive. There are strong restrictions on sub-letting you will need to check your
lease to see if it is allowed, and there is the added risk that you may not be able to find
a sub-tenant. If you do not, you will still have to pay rent, rates, insurance and
maintenance on the extra space until you are successful in doing so.
1. What warning is given in the second paragraph?
A Inflation will reduce the value of property.
B A lot of properties are over-valued by people selling them.
C You will probably need to sell property at some point.
D You may lose money on property you buy.
2. What problem is mentioned concerning borrowing money to buy a property?
A Banks will not lend you money to new businesses.
B You will need to find 70% of the price at first and the rest later.
C You will probably need to borrow from more than one lender.
D The interest you have to pay will be more than your profits.
3. The writer says that when a lease comes to an end, you will probably be able to stay
A if you have been there for longer than twenty years
B if you and the landlord negotiate a new lease
C if the landlord improves the building
D if you pay the landlord compensation
4. According to the writer, your rights and obligations under the terms of a lease mean
that ______.
A you are not responsible for the condition of the building
B you may be able to move out early and sell the rest of your lease
C the rent is normally fixed for the whole period of the lease
D you can make changes to the building without the landlords agreement
5. The writer says that it is not advisable to rent premises larger than you need, because
A until you have sub-let you will have to pay all the bills
B it may be difficult to find a sub-tenant who is reliable
C even if you have a sub-tenant you will have to pay all the bills
D the rents paid by sub-tenants are often very low
6. What is the main purpose of this article?
A To tell the reader how to become a landlord.

B To tell the reader how to make money out of property.

C To help the reader to decide whether it is better to buy or lease.
D To recommend new businesses to buy property.
Passage 2
Personnel management is regarded as a profession. It is an organizational activity, which
is growing in Australia and elsewhere. Many observers believe that the most important
and pressing problems of future industrial societies will not be solely concerned with
production or technical questions, but will be people oriented and will involve a
knowledge of social and behavioral sciences and of the personnel function. Personnel
Management is now often called human resource management (HRM). We will use these
terms interchangeably.
The role of personnel management has, of course, changed over time. Originally
management to obtain and maintain an effective work force only used it and the emphasis
was on production and on economic rewards. Later there was a move towards a welfare
oriented personnel function such as benefits and health. This is now only one part of the
function. Later it was realized that if worker needs could be understood and met, for
example, security, achievement, and job satisfaction, then the organization itself could
better achieve its maximization of goals such as profits. Recently added to this has been
the social (community) responsibility of the organization. Thus personnel management
may now be involved in certain community activities, in equal opportunity employment
in developing policies, for example, in employing racial minorities of physically
handicapped people and in seeking to provide and maintain a climate in which individual
and organization goals are achieved.
Personnel management is about people. The management of people is an integral part of
the organization and of the process of management itself. It is through people that
organizations accomplish their goals; thus the management of people is a vital aspect of
an organizations functioning. Personnel management is not so mething that is only
carried out by the personnel department; it is an organization wide activity. All levels of
management are engaged in managing personnel. Line managers of other departments
e.g. marketing and production of various departments of sections in the public service and
public agencies e.g. Telecom all have personnel / human resource management duties.
They are involved in working in co-operation with the personnel department and its staff
in such areas as recruitment, training, appraisal, counseling, safety and health and job
Personnel management in its broadest sense involves all matters in an organization
regarding people decisions. This broad view focuses attention on three distinct but
interrelated topics. The first is that of human relations, in which such matters as
individual motivation, leadership, and group relationships and behavior are covered. The
second is the field of organization theory, which considers job design, managerial spans
of control, the flow of work through the organization, and so forth. The third consists of
the specific kinds of decision areas for which the personnel manager or personnel

department is directly responsible: acquisition, development, rewarding, and maintenance

of human resources.
The board definition of personnel management illustrates that the scope of personnel
management pervades the organization. Every person in an organization is involved with
personnel decisions. For example, all managers in any organization will need to know
how to train their employees, appraise their performance, and so forth. Similarly, no
managerial employees will not be exposed to performance appraisals, selection
interviews when hired, and so on.
To these sorts of definitions or descriptions must be added that as well as considering the
development and maintenance of the human relationships and physical well being of
employees, such activities are aimed at achieving individual and organizational objectives
or goals.
7. This extract serves as ______.
A a prelude to a book on personnel management
B an overview of personnel management
C a summary of how to manage people
D a briefing on administration
8. The future personnel management is bound to ______.
A be people oriented
B develop in the direction of personal satisfaction
C be focused on organizational behavior
D do without understanding social and behavioral patterns
9. Recently the scope of personnel management has been enlarged to embrace ______.
A fringe benefits
B security, achievement and job satisfaction
C welfare
D social responsibility
10. The specific duties of personnel management cover ______.
A how to manage personnel
B how to staff
C how to compensate the employees
D all of the above
11. In a broad sense, work design and the flow of work as well as the managerial spans of
control fall into the category of ______.
A human relations
B placements
C organization theory
D specific decision-making

12. The fundamental role of personnel management is to ______.

A maximize economic profits for the company
B ensure success in fulfilling individual and organizational objectives and goals
C cultivate and maintain a suitable business climate with the local community
D keep personnel highly motivated
Questions 13-17
Read the article below about changes in working hours. Choose the best sentence
from the list A-F to fill each of the blanks. Any sentence is to be chosen only once.
Ed Smith, a senior manager for Trustco Ltd in Worcester, used to work a minimum of 70
hours a week. He traveled regularly between the UK and USA and began to feel he had
become almost a stranger to his wife and his two young sons. Realizing that he was
putting himself under too much stress, he decided to try to change his working hours.
This idea worked.
These days, he still goes to work very early but he also leaves early. He now sees his
children before they go to bed and then does about an hours work by computer from
home in the evening, keeping in touch with American colleagues. 13______. The key to
Ed Smiths changing his hours was persuading his employer that he and other staff were
more productive when they worked the hours that suited them. This is easier said than
done, of course. 14______. Many of them are slow to realize the benefits of letting
employees work fewer or more flexible hours.
A recent survey of five thousand senior managers found that nearly half of them always
worked more than their contract hours, while many worked evenings and weekends. A
majority thought that this not only had a negative effect on their family relationships and
their health, but also reduced their productivity. 15______. It seems that it is job
satisfaction that is the deciding factor when it comes to employee productivity.
However, the good news is that more employers are now starting to realize that they are
only going to get higher output from their staff if those staff are happy and want to be at
work. 16______. His company have brought in changes partly for competitive reasons.
The research and development part of the business employs highly trained scientists, who
are expensive to replace. 17______. The employees seem to be very happy with the new
arrangements and, as a result, productivity rates have gradually but consistently increased
and staff turnover rates have fallen dramatically. According to Ed Smith, many companies
would benefit from a similar scheme, and everyone, from directors to employees
families, would have something to gain.
A Ed Smiths new working hours are just one example of the attempt to alter corporate

B This adds to the increasing evidence that long hours are not necessarily useful hours.
C They are often willing to accept that happy employees produce more.
D He admits to feeling much happier, and believes he has established a balance between
work and home life.
E It can be difficult to persuade organizations that a change of this type is in their
interest, too.
F To keep them happy, trust time has been introduced, where the company trusts
employees to do what is required, in whatever time it takes.
Cloze (30%)
There are 15 blanks in the following passage. For each blank there are four choices
marked A, B, C and D. Decide on the best choice.
Martin Charlesworth pays a visit to discover the secret of success at a busy printing firm.
From designing and printing corporate brochures and business cards to photocopying
students essays its all in a days work for Multicopy Printing. The family-run firm is one
of the most successful printing, copyshop and design offices in the region. Although it is
a 1 small company, it thinks big. The company has made a considerable 2 in hightech machinery to 3 up in this rapidly changing industry.
The companys success has recently enabled it to modernize and
its premises.
Multicopys Managing Director, Colin Marsh, says, It was very 5 before. We may get
up to two tonnes of paper delivered a day and we were running out of space to 6 it.
Now, were the only business in this area 7 a print service from start to finish all
under one roof. A vast amount of work can be 8 in a very short space of time.
The firm was 9 up 22 years ago by Colins father, who was the area manager for a
national 10 of printers before deciding to go into business on his own. In those days,
it was mostly small printing 11 such as letter-heads and photocopying. The business
grew rapidly in the mid-1980s with the 12 of new technology. Nowadays the core
photocopying business is high-volume, sometimes up to 300,000 copies for one job, and
it often needs to meet 13
deadlines for commercial outlets. But despite Multicopys
recent success, it has not forgotten its 14 , and part of the everyday 15 still consists
of doing small numbers of photocopies for members of the general public.
1. A. relatively
2. A. investment
3. A. go
4. A. boost
5. A. closed
6. A. reserve
7. A. lending
8. A. settled
9. A. taken

B. roughly
B. expense
B. get
B. exceed
B. crowded
B. collect
B. providing
B. built
B. put

C. wholly
C. cost
C. keep
C. continue
C. occupied
C. store
C. stocking
C. constructed
C. made

D. nearly
D. payment
D. bring
D. expand
D. filled
D. fetch
D. holding
D. completed
D. set

10. A. branch
11. A. duties
12. A. event
13. A. narrow
14. A. origins
15. A. duty

B. chain
B. actions
B. opening
B. sharp
B. reasons
B. routine

C. system
C. jobs
C. occasion
C. tight
C. bases
C. method

D. series
D. labours
D. introduction
D. steep
D. causes
D. effort

Finding out the extra word. (6%)
Questions 1 10
Read the job advertisement below.
In most of the lines 1- 10 there is one extra word. It is either grammatically incorrect
or does not fit in with the sense of the text. Some lines, however, are correct.
If a line is correct, write CORRECT on your Answer Sheet.
If there is an extra word in the line, write the extra word in CAPITAL LETTERS on
your Answer Sheet.
The exercise begins with two examples, (0) and (00)
Food Technologists Required
0 For all the diversity of the people who work at WP Foods there is one
00 single thing that unites to us all: a passion to create something special
1 and a determination to be the best in whatever we do. Weve been
2 producing high-quality foods for over than a century, and we travel to the
3 ends of all the earth to create the next generation of foods and drinks so
4 as to give delight our millions of customers. And thanks to our dedicated
5 staff, our much-loved brands just keep getting on better. We are now
6 seeking to appoint as innovators to manage a number of new teams in
the organization. Applicants must have a research degree in Food Technology
plus at least four years industrial experience.
00 TO

I. Match the words with their corresponding definitions. (12%)

1 h 2 l 3 i 4 j 5 g 6 b 7 k 8 d 9 c 10 e 11 f 12 a
II. Fill in the blanks according to the first given letters. (18%)
1 public 2 stock 3 capital 4 Proprietor 5 entirely 6 debts 7 profits 8 losses 9 Private
10 shareholders 11 director 12 secretary 13 contributed 14 liability 15 incorporated 16
headquarters 17 Corp 18 apply
III. Reading (34%)
1-6 D C B B A C
7-12 B A D D C B
13-17 D E B A F
IV. Cloze (30%)
1-5 A A C D B
6-10 C B D D B
11-15 C D C A B
V. Finding out the extra word. (6%)
1. CORRECT 2. than 3. all 4. give 5. on 6. as

1. () Graham Tullis Tonya Trappe New Insights into