2014 Dow Jones News Fund

Business Reporting Internship Test

Score_____
Student_______________________________________ College______________________________________________
Address_____________________________________________ City ______________________ State_____ ZIP_______
Monitors name & signature____________________________________________________ Date _____/______/2013
(Print name, then sign to certify student completed the exam in one hour or less.)

Monitors Address______________________________________ City ___________________ State_____ ZIP________

Monitors Phone Number (_____)______________ Monitors Email address: __________________________________
Instructions: This test has a one-hour time limit. Please print clearly using a dark pencil or pen. If attaching a
computer printout for the writing exercise, please make sure your name is on it.

Participants and monitors for this national competition should not divulge the contents of this exam. No parts of this test can be
reproduced without written permission of the Dow Jones News Fund.
Copyright 2013 Dow Jones News Fund, Inc.

PART 1 FINANCIAL KNOWLEDGE.

1. Who is Janet Yellen and what position is she being considered for?

2. Define a hostile takeover and explain how it may be accomplished.

3. Describe the deal between Samsung and Jay Z.

4. What does LIBOR stand for ?

5. What is the NLRB?

2014 DJNF Business Reporting Internship Test

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PART 2 CURRENT EVENTS. Fill in the blanks.

1. The Justice Department opposed a merger between ________________________ and _____________________.
2. The U.S. Supreme Court upheld the_______________________________________ though nullifying a key part.
3. Investor Carl Icahn sued to stop a buyout vote at computer maker ________________________.
4. CEO Ballmers announced retirement plans buoyed the stock price of _______________________________.
5. The ______________ acknowledged the existence of Area 51, long the subject of UFO conspiracy theories.
6. The 1963 March on Washington demanded civil rights and ________________________.
7. Three passengers died and 180 were injured in the __________________ crash at San Francisco International
Airport.

8. The ____________________ defended its spying programs saying it did not violate American citizens privacy.
9. Russia granted asylum to _______________________ after he spent several weeks in an airport transit area.
10. Security forces slaughtered hundreds as the Muslim Brotherhood rebelled in ___________________________.
PART 3 BUSINESS VOCABULARY. Define the financial terms and provide an example.
Profit Margin--

Gross Revenue--

Non Profit Corporation--

Limited Liability Company --

Subprime Lending --

2014 DJNF Business Reporting Internship Test

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PART 4 WRITING AND REPORTING. Write a news article using only the facts and quotes provided. You
may use a pencil or a pen; please ensure your completed story is clearly marked. If stapling a computer printout or
additional sheet of paper for this exercise, please make sure your name, university and date are on it.

FACTS
The companies are turning instead to developing current projects, unable to justify buying more property while fields
bought during the 2009-2012 flurry remain below their purchase price, according to analysts.
North American oil and gas deals, including shale assets, plunged 52 percent to $26 billion in the first six months from
$54 billion in the year-ago period. During the drilling frenzy of 2009 through 2012, energy companies spent more than
$461 billion buying North American oil and gas properties, the data show.
The spending slowdown by international companies including BHP Hilliton Ltd. and Royal Dutch Shell Plc comes amid a
series of write-downs of oil and gas shale assets, caused by plunging prices and disappointing wells.
The deal-making slump, which may last for years, threatens to slow oil and gas production growth as companies that built
up debt during the rush for shale acreage cant depend on asset sales to fund drilling programs. The decline has pushed
acquisitions of North American energy assets in the first-half of the year to the lowest since 2004.
Those companies that have to sell assets will likely fetch lower prices, said Fadel Gheit, an analyst at Oppenheimer & Co.
Inc. in New York. Producers with the highest debt levels that need cash to fund development, such as Chesapeake Energy
Corp., of Oklahoma City, are most at risk of having to accept lower offers from buyers, Gheit said in a phone interview.

QUOTES
Their appetite has slowed, said Stephen Trauber, Citigroup Inc.s vice chairman and global head of energy
investment banking, who specializes in large oil and gas acquisitions. It hasnt stopped, but it has slowed.
People do not sell unless they really need the money to invest in better options, Gheit said.

(Use back page or staple additional sheets to write your story)

2014 DJNF Business Reporting Internship Test

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2014 DJNF Business Reporting Internship Test

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2014 Dow Jones News Fund

Business Reporting Internship Test KEY
Score_____
Student_______________________________________ College______________________________________________
Address_____________________________________________ City ______________________ State_____ ZIP_______
Monitors name & signature____________________________________________________ Date _____/______/2013
(Print name, then sign to certify student completed the exam in one hour or less.)

Monitors Address______________________________________ City ___________________ State_____ ZIP________

Monitors Phone Number (_____)______________ Monitors Email address: __________________________________
Instructions: This test has a one-hour time limit. Please print clearly using a dark pencil or pen. If attaching a
computer printout for the writing exercise, please make sure your name is on it.

Participants and monitors for this national competition should not divulge the contents of this exam. No parts of this test can be
reproduced without written permission of the Dow Jones News Fund.
Copyright 2013 Dow Jones News Fund, Inc.

PART 1 FINANCIAL KNOWLEDGE.

1. Who is Janet Yellen and what position is she being considered for?
Janet Yellen is an American economist and professor who serves as vice chair of the Board of Governors of
the Federal Reserve System and is considered the front runner to replace Ben Bernanke as chair.

2. Define a hostile takeover and explain how it may be accomplished.

The acquisition of one company (called the target company) by another (called the acquirer) that is
accomplished not by coming to an agreement with the target company's management, but by going directly
to the company's shareholders or fighting to replace management in order to get the acquisition approved.
A hostile takeover can be accomplished through either a tender offer or a proxy fight.

3. Describe the deal between Samsung and Jay Z.

Samsung purchased 1 million copies of Jay Zs latest release Magna Carta for $5 each to allow users to
download for free.

4. What does LIBOR stand for ? London Interbank Offered Rate, the interest rate banks are prepared to pay
to borrow money from each other.

5. What is the NLRB?

National Labor Relations board, an independent federal agency that ensures employees of private
companies can organize union representation.
2014 DJNF Business Reporting Internship Test

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PART 2 CURRENT EVENTS. Fill in the blanks.

1. The Justice Department opposed a merger between __U.S. Airways___ and __American Airlines_____.
2. The U.S. Supreme Court upheld the_Voting Rights Act of 1965______ though nullifying a key part.
3. Investor Carl Icahn sued to stop a buyout vote at computer maker ___Dell___.
4. CEO Ballmers announced retirement plans buoyed the stock price of ___Microsoft Corporation_________.
5. The C.I.A.__________ acknowledged the existence of Area 51, long the subject of UFO conspiracy theories.
6. The 1963 March on Washington demanded civil rights and _______jobs, full employment___________.
7. Three passengers died and 180 were injured in the_Asiana Airlines_ crash at San Francisco International Airport.
8. The ___N.S.A._____ defended its spying programs saying it did not violate American citizens privacy.
9. Russia granted asylum to____Edward Snowden_________ after he spent several weeks in an airport transit area.
10. Hundreds were slaughtered as the Muslim Brotherhood rebelled in ___________Eqypt________________.
PART 3 BUSINESS VOCABULARY. Define the term and provide examples.
Profit Margin--A ratio of profitability calculated as net income divided by revenues, or net profits

divided by sales. It measures how much out of every dollar of sales a company actually keeps in
earnings. Profit margin is displayed as a percentage; a 20% profit margin, for example, means the
company has a net income of $0.20 for each dollar of sales.
Gross Revenue--"Raw" sales income; the amount customers actually pay the company when they make
their purchases.
Non Profit Corporation--an organization incorporated under state laws and approved by both the state's
Secretary of State and its taxing authority as operating for educational, charitable, social, religious,
civic or humanitarian purposes. A nonprofit corporation (also called "not for profit corporation") is
formed by incorporators, has a board of directors and officers, but no shareholders. Churches,
hospitals, universities, the United Way etc.
Limited Liability Company -- A limited liability company is a hybrid type of legal structure that provides
the limited liability features of a corporation and the tax efficiencies and operational flexibility of a
partnership.The "owners" of an LLC are referred to as "members." Depending on the state, the
members can consist of a single individual (one owner), two or more individuals, corporations or other
LLCs.
Subprime Lending --Typically, subprime loans are for persons with blemished or limited credit histories. The
loans carry a higher rate of interest than prime loans to compensate for increased credit risk. E.g., Home
refinance loans account for higher shares of subprime lenders' total origination than prime lenders'
originations; Subprime lenders are more likely to have terms like "consumer," "finance," and "acceptance" in
their lender names. Payday loans, car title loans.

2014 DJNF Business Reporting Internship Test

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PART 4 WRITING AND REPORTING. Write a news article using only the facts and quotes provided. You
may use a pencil or a pen; please ensure your completed story is clearly marked. If stapling a computer printout or
additional sheet of paper for this exercise, please make sure your name, university and date are on it.

FACTS
The companies are turning instead to developing current projects, unable to justify buying more property
while fields bought during the 2009-2012 flurry remain below their purchase price, according to analysts.
North American oil and gas deals, including shale assets, plunged 52 percent to $26 billion in the first six
months from $54 billion in the year-ago period. During the drilling frenzy of 2009 through 2012, energy
companies spent more than $461 billion buying North American oil and gas properties, the data show.
The spending slowdown by international companies including BHP Hilliton Ltd. and PLC comes amid a
series of write-downs of oil and gas shale assets, caused by plunging prices and disappointing wells.
The deal-making slump, which may last for years, threatens to slow oil and gas production growth as
companies that built up debt during the rush for shale acreage cant depend on asset sales to fund drilling
programs. The decline has pushed acquisitions of North American energy assets in the first-half of the
year to the lowest since 2004.

Those companies that have to sell assets will likely fetch lower prices, said Fadel Gheit, an analyst at
Oppenheimer & Co. Inc. in New York. Producers with the highest debt levels that need cash to fund
development, such as Chesapeake Energy Corp., of Oklahoma City, are most at risk of having to accept lower
offers from buyers, Gheit said in a phone interview.
QUOTES
Their appetite has slowed, said Stephen Trauber, Citigroup Inc.s vice chairman and global head of
energy investment banking, who specializes in large oil and gas acquisitions. It hasnt stopped, but it has
slowed.

People do not sell unless they really need the money to invest in better options, Gheit said.

2014 DJNF Business Reporting Internship Test

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SHALE GRAB IN THE U.S. STALLS AS FALLING VALUES REPEL SHALE BUYERS
North American oil and gas deals, including shale assets, plunged 52 percent to $26 billion in the first six
months from $54 billion in the year-ago period. During the drilling frenzy of 2009 through 2012, energy
companies spent more than $461 billion buying North American oil and gas properties, the data show.
The spending slowdown by international companies including BHP Billiton Ltd. (BHP) and Royal Dutch
Shell Plc (RDSA) comes amid a series of write-downs of oil and gas shale assets, caused by plunging prices
and disappointing wells.
The companies are turning instead to developing current projects, unable to justify buying more property
while fields bought during the 2009-2012 flurry remain below their purchase price, according to analysts.
The deal-making slump, which may last for years, threatens to slow oil and gas production growth as
companies that built up debt during the rush for shale acreage cant depend on asset sales to fund drilling
programs. The decline has pushed acquisitions of North American energy assets in the first-half of the
year to the lowest since 2004.

Those companies that have to sell assets will likely fetch lower prices, said Fadel Gheit, an analyst at
Oppenheimer & Co. Inc. in New York. Producers with the highest debt levels that need cash to fund
development, such as Chesapeake Energy Corp., of Oklahoma City, are most at risk of having to accept lower
offers from buyers, Gheit said in a phone interview.
People do not sell unless they really need the money to invest in better options, Gheit said.
Their appetite has slowed, said Stephen Trauber, Citigroup Inc.s vice chairman and global head of
energy investment banking, who specializes in large oil and gas acquisitions. It hasnt stopped, but it has
slowed.

(Use back page or staple additional sheets to write your story)

2014 DJNF Business Reporting Internship Test

Page 4 of 4