University of Economics, HCMC Paper Code: SPECIMEN TEST HP4

School of Foreign Languages for Economics

EXAM IN ENGLISH FOR BUSINESS STUDIES (75 minutes)

SECTION 1: Vocabulary and Structure (30 marks, 1 mark/answer)
Make the best choice
1. The power of money has become __________ in 10. He was employed to __________
today’s business world, which can unfortunately the computerization of records.
contribute to unethical decisions. A. integrate
A. pervading B. motivate
B. pervasive C. supervise
C. pervaded D. achieve
D. pervasion 11. __________ is the extra money that you pay if you
2. The __________ strategy was to target the heads of have borrowed money, or the extra money that you
the household as they had the final say on where the receive if you have money in some types of bank
disposable income would be spent. account.
A. promotional A. Investment
B. promoting B. Intangible
C. promoted C. Interest
D. promotive D. Income
3. To __________ is to make a deal between different 12. _____________ is the difference between the funds
parties where each party reduces demands or a country receives and those it pays for all
changes their opinions in order to agree. international transactions
A. deal with A. Balance sheet
B. confront B. Balance of payments
C. complain C. Balance of trade
D. compromise D. Balance outstanding
4. People in __________ cultures are good at changing 13. It is difficult to __________ the success of the
plans. campaign at this stage.
A. multi-active A. measure
B. reactive B. allocate
C. linear-active C. include
D. collective D. classify
5. It’s not fair to make __________ out of loans to poor 14. __________ is the process of dividing a broad
students. consumer or business market, normally consisting of
A. changes existing and potential customers, into sub-groups
B. profits of consumers based on some type of shared
C. efforts characteristics.
D. messes A. Market expansion
6. The President has accused two cabinet ministers of B. Market segmentation
working secretly to ________ his position. C. Market penetration
A. undermine D. Market promotion
B. undergo 15. All the companies or individuals (‘middlemen’)
C. undertake involved in moving goods or services from producers
D. underlie to consumers are called _______________ .
7. A person such as an employee, customer or citizen A. vehicles
who is involved with an organization, society, etc. B. distribution couriers
and therefore has responsibilities towards it and an C. transportations
interest in its success is a(n) __________ . D. distribution channels
A. account holder 16. __________ is a marketing process that showcases
B. shareholder the differences between products.
C. stockholder A. Product variation
D. stakeholder B. Product marketing
8. A __________ is an amount of a company’s profits C. Product differentiation
that is paid to people who own shares in the D. Product segmentation
company. 17. Some car manufacturers, food retailers and
A. loan department stores now offer products like personal
B. mortgage loans, credit cards and insurance. Technically these
C. dividend are not banks but __________.
D. surplus A. credit crunch
9. __________ is the process of designing the products B. non-bank financial intermediaries
or services to benefit a local market while at the C. traditional investment funds
same time developing and distributing them on a D. stockbroking management services
global level.
A. Globalization 18. __________ are private investment funds for wealthy
B. Localization investors that use a variety of risky investing
C. Glocalization strategies than traditional investment funds, in order
D. Grobalization
 to achieve higher returns. D. profit and fund
A. Non-bank financial intermediaries 25. LeoStone PLC has declared __________ after a year
B. Hedge funds of heavy pre-tax losses.
C. Stockbrokers A. bankruptcy
D. Conglomerates B. dividend
19. More resources are being __________ to the project. C. equity
A. divided D. recession
B. separated 26. __________ free trade is potentially hostile to
C. allocated environmental concerns and may put human health
D. conformed and safety at risk.
20. __________ is a strategy for setting a low price to try A. Unfettered
to sell a large volume and increase market share of a B. Restricted
particular product or service. C. Limited
A. Market penetration strategy D. Definite
B. Market development strategy 27. DVP has cut its __________ to 2 USD per share
C. Product development strategy after two years of declines in annual turnover.
D. Product expansion strategy A. dividend
21. __________ measures the responsiveness of the B. turnover
quantity demanded or supplied of a good to a change C. sample
in its price. D. distribution
A. Price differentiation 28. Hoang Yen group, a restaurant & buffet chain, is
B. Price response suffering in the current __________ because
C. Price elasticity consumers are spending less money going out.
D. Price adaptivity A. recession
22. At the _________, prices may have to be reduced B. annual turnover
because competitors are established in the market, C. bankruptcy
but companies try to defend their market share while D. placement
also maximizing profit. 29. A __________ is a country or place that has a low
A. introduction stage rate of tax so that people choose to live there or
B. growth stage register companies there in order to avoid paying
C. maturity stage higher tax in their own countries.
D. decline stage A. money launderer
23. A statement showing the value of a business’s B. tax harbour
assets, its liabilities, and its capital or shareholders’ C. tax haven
equity is called a(n)__________ D. tax evasion
A. income statement 30. __________ is comprised of all capital contributed to
B. cash flow statement the company including paid-in capital and retained
C. balance sheet earnings.
D. financial record A. Shareholders’ equity
24. The _________ account shows if a company is B. Shareholders’ dividend
receiving more money than it’s spending. C. Stocks
A. profit and expense D. Liability
B. profit and loss
C. profit and share

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 38 Features 31 Conditions 34 Statements 37 balance

Agency 39 Shareholders 32 Motivation 35 individual company
Communication 40 Strategy 33 External 36 internal

One of the most important (31) ________________ 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) ________________ 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) ________________. 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 adveritising (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.

SECTION 3: Reading Comprehension (30 marks, 2 marks/answer)

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. T

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

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

44. If there is an independent central bank, governments can’t manipulate the business cycle. T

Choose the correct answer:

45. 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

46. 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?

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

48 “… causing inflation, they can slow it down by increasing interest rates and reducing …” (para 5) governments &/central
banks

Find words from the text which mean:

49. purchasing and using goods and services consumption

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

51. government actions concerning taxation and public expenditure fical policy

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

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

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

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

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

SECTION 4: Listening (20 marks) - You may listen 2 times for each part.
PART 1: Listen and fill in the gaps (1 mark/answer)
Microfinance schemes started with several NGOs and social enterprises, for example Grameen Bank in Bangladesh. They
distribute very small (56) _________ to poor people, often without financial collateral. But they use some kind of different
collateral, sometimes it can be social (57) _________, 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 (58) _________ tool. Of course, (59) _________ 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
porfolio in which the risk can be (60) _________.
NGOs and social enterprises proved that these kinds of schemes can be (61) _________, and the poor people are actually
repaying the loans, so now the (62) _________ banks like Citibank and Barclays are taking part in these (63) _________,
not for the purpose of doing good only, they are actually doing it as part of their business. They are developing their
microfinancing and (64) _________ products in developing countries. It seems that microfinance is doing really well
particularly in Bangladesh and part of India, and there are some (65) _________ cases in Latin America and Africa too.
PART 2: Listen and fill in the notes (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.
 
SECTION 4
Part 1
56. loans
57. collateral
58. management
59. distributing
60. diversified
61. scalable
62. conventional
63. schemes
64. microcredit
65. positive
Part 2
66. online recruitment
67. job seekers
68. unique opportunity
69. specialist people
70. human resources