BANKING UNIVERSITY- HCM CITY Student’s name: ………………….

…
FACULTY OF FOREIGN LANGUAGES Reg. No.: ……………………………

MID-TERM TEST OF ENGLISH

Reading 4 Time allotted: 30 minutes

ANSWER SHEET
1 11 21 31

2 12 22 32

3 13 23 33

4 14 24 34

5 15 25 35

6 16 26 36

7 17 27 37

8 18 28 38

9 19 29

10 20 30

PART ONE: Look at the statements below and the advice on handling acquisitions. Which section (A, B, C or D)
does each statement 1 - 7 refer to? For each statement 1 - 7, write one letter (A, B, C or D) on your Answer Sheet.
You will need to use some of these letters more than once.
1 A cautious approach can be used when calculating what a company is worth.
2 Consider personnel issues so that you have sufficient resources to fulfil your objectives.
3 In order to know if you can make a return on your investment, assess how you can add to the
company you are buying.
4 Providing sufficient support for staff during the acquisition process can have a favourable
outcome.
5 Take into account your long-term requirements to ensure you have the resources you need.
6 Even after investing some effort in the acquisition, it may still be necessary to withdraw.
7 Terms initially negotiated can be changed after the acquisition.
MERGERS AND ACQUISITIONS
As Finance Director of plastics manufacturer VKT, Yvonne Maynart has overseen many successful
takeovers.
(A) It is essential to build up a team to handle the acquisition so that your existing business can continue
uninterrupted during the deal. It also helps to operate with spare capacity so that you can transfer people
during the initial stages. A key person should be driving the acquisition process forward, although one
person alone cannot assume responsibility for a large deal. It is clearly vital to do thorough research when
identifying potential targets - but do not be afraid to walk away from a deal if you become aware of serious
difficulties with a company you are targeting.
(B) To decide on the value of any target business, you must first determine what contribution your
acquisition can make to it. For example, you may be able to increase revenue through a more focused
management team, or improve margins through greater purchasing power and lower costs. At VKT, we base
our valuations on conservative assumptions - we also add in the risk element. This approach may be best,
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 and it's worth remembering that with listed companies, shareholders tend to have higher risk/reward
expectations.
(C) Developing relationships with finance providers is a key part of the finance director's role. It is
important to draw up a good business plan to ensure backing from lenders in the early stages of the
acquisition. Your loan application needs to be supported by detailed profit and cash flow projections. Make
sure you factor in sufficient finance to let the business develop over time, and allow for reinvestment. Here
at VKT, we usually finance acquisitions with bank debt in the form of a 364-day loan, which can then be
refinanced at a lower interest rate later.
(D) If an acquisition is large, it can take years for companies to integrate. At VKT we monitor all acquisitions
closely for at least two years and the most important lesson I've learned is that a deal is only good if it is
beneficial for both vendor and acquirer. Change causes confusion so it needs to be handled carefully. In
order to protect profits and grow the business, you need to minimise the impact of change and help the
people affected feel comfortable about it. When this is done properly it can really boost morale.

PART TWO: Questions 8-12: Read the article below about IWC, a luxury Swiss watch company. For each gap 8–
12, choose one letter (A–F) and write on your Answer Sheet. Do not use any letter more than once.
The rule breaker at IWC on the move to go global
Chief Executive of IWC, Georges Kern has shaken up the luxury watch industry. In an industry
renowned for cautious, reserved executives, Georges Kern is an exception. The German took the helm of
Richemont-owned IWC Schaffhausen 12 years ago at the age of 36 – making him at that time the youngest
chief executive of any brand within the luxury conglomerate’s portfolio. He had a difficult task: turning a small,
146-year-old watch house – the only watch brand based in eastern Switzerland – into a competitive global
name, and to date his approach has met with commercial success.
So when IWC unveiled a ‘midsized’ collection as part of its Portofino range this year, the industry took
notice. __ (8) __ ‘I don’t know why people are surprised. We’ve always sold to women – they now make up 25%
of our sales base, so it seemed a fitting next step,’ says Mr. Kern. The option of reduced case-diameters was
also devised with Asian customers in mind.
‘I like that we break rules. We must be a contemporary brand – we are not a dusty brand. And the
appetite for our designs is there, from a valuable and growing customer demographic.’ __ (9) __. The campaign,
shot by film-maker Peter Lindbergh, features a constellation of Hollywood stars wearing tuxedos and lounging
about in the Italian coastal town after which the collection was named.
‘We live in a world fixated on the transactional power of the image. So you need to find ambassadors
and environments that resonate universally with consumers,’ Mr Kern says. __ (10) __. ‘One must be
progressive and’ relevant, he adds. In less than three weeks the Portofino video gained 4.7 million views on
YouTube – notable, given the reluctance of Swiss luxury watch houses until recently to harness the power of
digital advertising platforms.
But with the rise of wearable devices, and the prospect of the launch next year of the Apple Watch,
brands such as IWC must show more agility online than ever before.
I am not concerned by the impact of smartwatches on our sales – they are at a vastly different price
point, so we are not competing for the same consumer,’ says Mr Kern.
__ (11) __. ‘To make sure consumers understand this involves positioning ourselves in all the right
places,’ says Mr Kern. This means the brand is adding to the number of its boutiques globally, including a
flagship store on London’s New Bond Street, expected to open in December. But it is not only concentrating on
Europe: luxury spending hubs such as New York, Miami, Dubai and Tokyo have also seen IWC stores open in
recent years. __ (12) __. ‘We’ve worked very hard with our retail strategy to ensure we are not dependent on
any one region.’
A: ‘A decade ago we were a very Eurocentric brand – we had zero visibility in the US or Asia, let alone
emerging markets,’ he says.
B: That approach is also evident in the advertising campaign.
C: But the battle for watches looks likely to be a fight between fast fashion and timepieces that represent
traditional craftsmanship.
D: But volatile exchange rates and mounting geopolitical instability appears to be taking its toll on the global
growth rate of the watches and jewellery sector.
E: The collection was IWC’s first aimed at women as well as men.
F: The campaign is also running on social media.

PART THREE: Questions 13-18. Read the article below and decide if the statements are TRUE/FALSE/NOT GIVEN.
For each question 13 – 18, write one letter (A, B, or C ) on your Answer Sheet for the answer you choose.

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 In the US., not every agreement between two people is a binding contract. Sometimes a contract may be
defective and may consequently be void, voidable, or unenforceable.
A contract may be void – that is, no contract exists – if one or both of the parties are not recognised in law as
having legal capacity to consent to a contract, for example persons with certified mental incapacity. An
agreement that is lacking one of the legal elements of a contract is also said to be a void contract. An agreement
that is illegal - for example, a promise to commit a crime in return for a money payment - is void. Neither party
to a void “contract” may enforce it.
A voidable contract is one that may become unenforceable by one party but can be enforced by the other. In
other words, a contract is voidable when it may be revoked or cancelled by one of the parties if there is some
defect in its formation. For example, if the contract for the sale of land is not in writing, the parties can either
ignore the defect and treat the contract as fully binding, or one of the parties can use the defect as a means for
setting the contract aside. Another example is when a minor (any person under 18) may “avoid” a contract with
an adult, and the adult may not enforce the contract against the minor if the minor refuses to carry out the
bargain. However, the adult has no choice if the minor wishes the contract to be performed.
Some contracts may be neither void nor voidable but cannot be enforced in a court of law, for example
payment of a gambling debt. Lapse of time may render a contract unenforceable. The limitation period for a
legal action brought under a deed is usually 12 years from the date of occurrence of the cause of action. An
action on a simple contract is barred from being raised after six years.
13. A binding contract must be in the form required by law.
A: TRUE
B: FALSE
C: NOT GIVEN
14. A contract must be between parties with legal capacity to make it binding or enforceable.
A: TRUE
B: FALSE
C: NOT GIVEN
15. A contract for the sale of land which is made orally is a void contract.
A: TRUE
B: FALSE
C: NOT GIVEN
16. A void contract can still be enforceable by law.
A: TRUE
B: FALSE
C: NOT GIVEN
17. A simple contract becomes effective on execution generally when it is signed.
A: TRUE
B: FALSE
C: NOT GIVEN
18. All contracts may be either void or voidable.
A: TRUE
B: FALSE
C: NOT GIVEN

PART FOUR: Questions 19–24: Read the article below about project managers. For each question write ONE word
in CAPITAL LETTERS (chosen from the box) on your Answer Sheet.

BEEN WHOSE MUCH FOR

HAD WHO TO THEY
IT ABOUT THAT MOST

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 In the past, school leavers have __(19)__ encouraged to train on a university education because it would
guarantee a quick route to a good job with security and benefits. People spoke of apprenticeships in a
particularly way, rarely applauding their value and suggesting this course to those __(20)__ were considered
academically weak.
However, the business world has changed considerably since those days and the current thinking is __(21)
__ recruiting apprentices is a better option for companies. Furthermore, apprenticeships which provide both
work experience as well as giving them an allowance __(22)__ university study, seem to offer the best of both
worlds for companies and employees.
In today’s fast-changing world, it is imperative that companies have staff who can connect the dots and
who have the ability to spot opportunities when faced with them. When employing graduates __(23)__ can
take quite a long time before they understand the company and its work culture, whereas the apprentice not
only has sector-relevant skills but they also fit in __(24)__ more quickly.

PART FIVE: Questions 25–38. Read the advice below about How to Plan a Sales Conference. Choose the best word
to fill each gap from A, B, C or D. For each question 25 – 38, mark one letter (A, B, C or D) on your Answer Sheet.
BYE-BYE BORING
You can plan a lively sales conference without breaking the bank.
For a sales representative, there are few things more boring than being asked to endure three days of sales
meetings. But because sales conferences are an excellent __25__ for reps to discuss a new product launch or get
new ideas, there are many powerful __26__ to plan a gathering.
Would you like to pull together a lively sales conference that will __27__ your reps to sell better, bond and
share their most __28__ selling practices? Here are a few great ways to plan a conference.
Create a mix of fun and focus. Schedule a keynote speech from a speaker the sales staff respect. And when
__29__ activities, remember: one salesperson’s idea of a fun experience may be another’s waste of __30__ time.
Planners should create a menu of entertaining activities and let people decide. While some may choose golf,
__31__ may go for a massage and a manicure. A well-planned meeting should be a mixture of 25 per cent fun
and 75 per cent education.
Book well and __32__ money. Rio during Carnival may make your bankrupt, so _33__ booking a great resort in
the off-season. Think Maine in March or Dallas in June. You’ll get wonderful facilities at _34__ prices- and
probably a lot more attention from the hotel staff.
If you are on a tight _35_, you should be especially careful at the development stage. Plan and get competitive
bids from _36_ providers. Analyse the costs _37_ to your goals, and organize the meeting so that it will be as
cost-effective as possible.
Engage your _38_. Motivate reps before the conference by giving them an assignment, such as reading industry
articles they should be prepared to discuss, or sharing the finest proposals they have ever written.

25. A: position B: point C: place D: area

26. A: reasons B: intentions C: needs D: advantages
27. A: force B: inspire C: move D: involve
28. A: capable B: effective C: certain D: able
29. A: doing B: thinking C: making D: arranging
30. A: costly B: pricey C: worthy D: valuable
31. A: one B: another C: others D: any
32. A: save B: keep C: spend D: pay
33. A: think B: plan C: consider D: arrange
34. A: lowest B: exclusive C: falling D: bargain
35. A: estimate B: budget C: quote D: spending
36. A: few B: varied C: distinct D: various
37. A: next B: similar C: relative D: near
38. A: attendees B: attendants C: assistants D: attention

SUGGESTED KEYS - SCORES

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