Name:

Company:
Date:
Final Exam 2013
Upper – intermediate (Financial)

1. Use words or phrases to complete these sentences. ( /10)

1. When business activity increases during an economic downturn, it is called

c___t_r cy _ _ _ _ l
2. Companies whose business takes time to react to changing economic conditions,
are known as l _ t _ cy _ _ _ companies
3. A competitor made a h _ _ t _ _ _ bid for a company which did not want to be
taken over
4. Corporate f _ n _ _ c _ _ r _ like to take advantage of interesting business
investment opportunities
5. A person who starts a new company is called an e _ t _ _ p _ _ _ _ _ _
6. To set up a new company you need money, known as c _ p _ _ _ _
7. Investors are happiest when they receive a high r _ _ _ of r _ t _ _ _ on
their investments
8. Arranging finances in a clever, profitable and sometimes slightly dishonest way
is known as f _ n _ _ _ _ _ _ e _ g _ _ _ _ _ _ _ g
9. Companies which borrow money usually have to provide the lender with some
type of security or c _ l l _ _ _ _ _ l in case they cannot repay the loan
10. If the company makes a lot of cash, this can be called generating
l_q_____y

2. Choose the best word or phrase to complete each of these

sentences. ( /10)
1. A __________ is an amount of money owed by a company to a lender of
supplier.
a) dividend b) debtor c) deposit d) liability
2. __________ is the capital that a company has from shares rather than from
loans.
a) Securities b) Equity c) Retained profit d) Earnings per share
3. A company's __________ profit is the profit relating to its normal activities of
providing goods or services.
a) paper b) pre-tax c) trading d) operating
4. Companies regularly publish performance forecasts or __________
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a) expectations b) guidance c) predictions d) considerations
5. A strong or __________ currency or stock performs well when others are doing
badly.
a) reliable b) powerful c) resilient d) solid
6. When the value of stocks and shares is rising and falling without much warning,
this is known as market __________
a) instability b)volatility c) risk d) shakiness
7. When a company reduces the value of an asset on its balance sheet, it writes it
__________
a) off b) on c) down d) up
8. Good __________ management helps to protect a company from financial
disaster
a) cost b) quality c) people d) risk
9. When some of a company's managers take over part of the company and run it
separately, this is known as a __________
a) merger b) management buyout c) hostile takeover d) golden parachute
10. Options and futures are types of __________
a) debts b) accounts c) derivatives d) strategies

3. Listening ( /25)

Listen to eight different presenters, and decide what each one is doing.
- Write one letter, a)-f), next to the number of the speaker.
- You will have to use four letters twice.

Speaker 1 _____
Speaker 2 _____ a) introducing the main topic
Speaker 3 _____ b) turning to a new topic
Speaker 4 _____ c) going back to a previous point
Speaker 5 _____ d) referring to visuals
Speaker 6 _____ e) dealing with questions
Speaker 7 _____ f) concluding the presentation
Speaker 8 _____

4. Speaking ( /35)

1. Briefly describe the crisis in the international banking system which began in
2007

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2. Why are global companies keen to expand to China? Do you know any
companies which have open subsidiaries in China? Which industrial sectors do
they operate in?
3. Make a list of reasons why Chinese companies might be keen to invest in
Western companies.
4. A completely new company is often referred to as a "start up". In what ways can
start-ups be risky ventures? Can you think of any start-ups which have become
very successful in the last few years? What factors do you think contributed to
their success?

5. Writing ( /20)

You work for ColourColour, a paint manufacturer. The company has not yet
received payment from a retail customer for the invoice below. The finance
manager, Mrs. Spears, asks you to write a letter (120–140 words) to Myron
Jenkins, the manager of the retail business. Include the following points.
– The subject of the letter
– Remind the customer what the order was
– Explain to Mr. Jenkins that the payment is overdue
– Explain that if payment is not received within seven days, the company will take
further action
– Give details of how you or Mrs. Spears can be contacted.

INVOICE
Colour
Invoice number: 01886212
Client: Passion for Paint
Date: 15 June
Order: wall paint, magnolia
(Deliver by 17 June)
Quantity: 100 x 5 litre tins
Price: £1,825
Payment due: within 30 days (by 15 July)