r4 (Practice+Vocab)

R4 PRACTICE R4 LECTURER: NG THAO TRANG
MATCHING SENTENCES (U7)
• Read the article below about management styles.
• Choose the best sentence (A–G) to fill each of the gaps.
• For each gap 1–5, mark one letter (A–G).
• Do not use any letter more than once.
• There is an example at the beginning.
TIPS:
- Read through the whole text.

- Check the topic of each paragraph.
- Look very closely at the sentences immediately before and after the gap.
- Make sure that the sentence fits in with the topic of both sentences.
- There is always an extra sentence that does not fit anywhere.
What the best parents can teach us about management

by Michael Sapinker
No textbook can prepare you for being in charge of people for the first time. You
quickly realise that people do not always do what you tell them to do. (0) G. You can
try to enforce your will or you can accept that your team know their jobs and let them
get on with it.
Douglas McGregor called these approaches Theory X and Theory Y in his book The
Human Side of Enterprise, published in 1960. You probably manage, or are managed,
according to one of his two theories. Theory X assumes people do not particularly want
to work and need to be ‘coerced, controlled, directed, and threatened with punishment'.
Theory Y assumes people want to do a good job (1) ...... McGregor favoured Theory Y.
However, many managers spoke of Theory Y, but practised Theory X.
There have always been exceptional workplaces - often in the professional services
or technology sectors – where managers gave their staff the freedom to set their own
hours, work from home or find the best ways of serving customers. (2) ......
McGregor's research in the US from the mid-1930s to the 35 mid-1950s, was

during a period of prosperity and people expected to have long careers with just one or
two compares. His writings revolutionised the field of 40 management theory, but it
seems Theory Y management has fallen victim to today's insecure working world, where
companies offer their staff no loyalty and receive little in return.
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There are many easy-going, creative workplaces relying on outsourced data

processing and call centres, which are not full so of managers eager to let their employees
decide their own working practices. However, even in the most go-ahead offices, the
human resources and legal departments increasingly insist on the completion of online
forms for routine activities. (3) ......
We need a different type of thinking about management. (4) ..... Diana Baumrind,
a US psychologist famous for her research on good parenting, outlines three ways of
dealing with children: permissive, authoritarian, and authoritative.
"The permissive parent attempts to behave in a non-punitive, acceptant, and

affirmative manner,' she wrote. This is like McGregor's Theory Y. The authoritarian parent
tries 'to shape, control, and evaluate. She values obedience as a virtue. This is like Theory
X. Then there 7s is the authoritative parent, who 'attempts to direct the child's activities
in a rational, issue-oriented manner' This is the parent who 'encourages verbal give and
take'. She exerts control only at points of real divergence 'but does not hem the child in
with restrictions.'
(5) .... Children cannot resign. But the authoritative parent, who sets clear
parameters but allows freedom within them, who reasons rather than rules (and makes
the numbers), strikes me both as an excellent model for managers and a realistic middle
route between Theories X and Y.
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A. But there are many more companies where managers claim to believe in their people
but micromanage and insist things be done their way.
B. They do not need to be ordered about and are naturally inventive, looking for the
best ways to get work done.
C. Nevertheless most managers tend to be Type X these days.
D. However, there are differences between parenting and management.
E. If we want to find an effective way of treating our staff like adults, perhaps we
should turn to an expert in dealing with children.
F. These take up a lot of time and managers, therefore, find themselves unable to do a
good job.
G. There are two accepted ways to deal with this.
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MATCHING STATEMENTS (U8)
• Look at the statements below and the comments made by team-building experts.
• Which section (A, B, C, or D) does each statement 1–7 refer to?
• For each statement 1–7, mark one letter (A, B, C, or D).
• You will need to use some of these letters more than once.
Example: Team members lacked the desire to continue working. D
1. Staff and employers disagree about the value of specific training.
2. The leader behaved in an unacceptable way.
3. Disagreements jeopardized the final outcome of the project.
4. A company regretted not using experts.
5. Problems should be resolved by the whole team.
6. Team members were not guided by their team leader.
7. Team members were against the idea of the project.
A Teamwork is about getting different people with different skill sets working
cooperatively and efficiently. A company I worked with had disorganised and
indecisive leaders who set unrealistic goals so that team members found it
impossible achieve the required results. Things went badly wrong on a very
important project, and conﬂict amongst the team threatened to damage the entire
project. Luckily, I was called in to help just in time and made sure that the leader
addressed the situation by involving the whole team, and we succeeded in saving
the project.
B We organise team-building events to improve a company’s team spirit. One
company said their staff were unenthusiastic about these and saw the previous
training as a waste of time, whereas the company believed it was a practical way
to develop loyalty and trust between team members. We explained to the
company that perhaps they had chosen the wrong type of activity in the past, as
some outdoor physical activities may be totally unsuitable for certain staff
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members. We spoke to the staff involved and suggested a less physical team-
building event, which was very successful.
C I remember one company that was notorious for choosing poor team leaders and
they might have avoided the failures had they chosen better. For one project, the
team was chosen, seemingly at random, to prepare the way for setting up a new
factory overseas. The leader was inexperienced and uncommunicative, and
everyone worked independently. Although the objectives had been clearly set out,
many team members hated the plan from the start so were uncooperative. The
company wished it had called us in earlier.
D In one company the team leader only chose people who were his close associates.
He should have chosen them according to their skills and ability to work in a team.
Furthermore, he failed to give team members enough time to complete tasks,
putting them under extreme pressure and leading to serious mistakes. He then
threatened staff with demotion if they failed and promptly succeeded in
demotivating the whole team. Leaders need training in the necessary skills of
managing, and that company should have chosen a more competent team leader.
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CLOZE READING (4 OPTIONS)
• Read the article below about dealing with finances.
• Choose the best word to fill each gap from A, B, C or D.
• For each question 1–15, mark one letter (A, B, C or D).
• There is an example at the beginning.
Dealing with finances
Financial advice always advocates that you don’t put all your (0) C in one
basket – in other words, you spread the risk, but for many companies that is not
easy. Poor (1) …... has caused many a company to go into (2) ….... They tell us
that we have to speculate to (3) …..., but most companies are not able to (4)
…... big risks. Companies need to be fully aware of the assets and (5) …... and
especially any bad (6) ….... There are many other things which have to be taken
into account: (7) …... payments on any loans and (8) …... repayments for any
monies borrowed against property. It is vital for the finance department of any
organisation to allocate realistic (9) …... and even more important for employees
to ensure that they do not overspend.
Furthermore, limited organisations also have to pay (10) …... to

shareholders every year, (11) …... on the success of the company. Anyone who
invests in a business wants to ensure they get a good (12) …... on that investment
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and when companies are not doing well, they may start selling shares, making the
situation even worse. When companies need support, investors are often not
prepared to throw good money after (13) ….... There is no (14) …... that they
will make money, it is always a risk. Although it is ideal to always be in the (15)
…..., many businesses have to operate owing money, especially in the first few
years of business.
0 A ideas B plans C eggs D food
1 A equity B capital C collateral D cashﬂow
2 A bankruptcy B administration C liability D collapse
3 A accumulate B acquire C invest D accrue
4 A make B do C take D have
5 A debts B liabilities C debtors D capital
6 A deposits B charges C debts D subsidies
7 A credit B share C return D interest
8 A mortgage B overdraft C dividend D warranty
9 A loans B instalments C subsidies D budgets
10 A shares B dividends C fees D grants
11 A regarding B according C depending D concerning
12 A return B charge C interest D collateral
13 A poor B wrong C weak D bad
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14 A warranty B guarantee C promise D agreement
15 A red B black C dark D pink
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MULTIPLE CHOICES (4 OPTIONS) (U12)
• Read the article below about the Dixons Carphone merger.
• For each question 1–6, mark one letter (A, B, C or D) for the answer you choose.
Dixons Carphone case study: the hard work after the merger fanfare
When Dixons Retail merged with Carphone Warehouse this year, the two electrical goods
retailers turned some of their outlets immediately into joint stores. They decided to mark
out Carphone areas with lighter coloured flooring, to distinguish them from the spaces
occupied by the legacy Dixons brands: Currys and PC World. But Mr. James, Dixons
Carphone's Chief Executive, now worries the flooring may send the wrong message to
staff and customers about a partnership he hopes will be seamless.
It is just one tiny example of the many management challenges that groups face as they
enter the critical integration phase following a takeover or merger. Even the most
promising unions can be doomed by unanticipated culture clashes, problems with
combining systems, or tension at the top between executives who suddenly find they
have to share responsibility for businesses they once headed outright.
Almost exactly a year ago, Mr. James, who headed Dixons before the merger, met Andrew
Harrison, his opposite number at Carphone Warehouse to discuss how they could work
better together. Mr. Harrison says the deal discussions began with a vision of ‘what we
wanted to achieve and a vision of where the world was going’. It sounds corny but could
be a good start. Using a sample of recent US and UK transactions, Cass Business School
found that mergers and acquisitions based on clear strategic intent made up a far higher
percentage of those that succeeded.
Dixons and Carphone had to accelerate when rumours of the impending deal leaked in
February. While the leak put short-term pressure on the two companies, it also allowed
them to be more open with staff and suppliers. The same Cass research shows the
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importance of open communication, noting that two-thirds of successful acquirers shared

more detailed information in public announcements of their plans.
By August, the two companies had gathered their 2,000 Store Managers together for
training and to get to know each other. Individual stores took responsibility for briefing
their own staff.
The retail infrastructure of the two companies is quite different, with Carphone staff
trained to sell mobile phone contracts, whereas Currys and PC World staff are more used
to selling hardware. At the moment, the staff are measured against separate in-store
targets. But Mr. James believes ‘selling intangibles’ will become more important for the
merged group, as it moves further into service, installation, and maintenance of
‘connected’ homes and offices.
A less obvious, but potentially significant concern is how to bring different warehouses,
stock systems, and information technology into line, to ensure, for instance, uniform
pricing of the accessories. While Dixons Carphone was able to decide not to rebrand, the
merging of the two companies' logistical infrastructure is unavoidable – and risky. To
differentiate between their roles, Mr. Harrison takes responsibility for the growth of
businesses and innovation, while Mr. James has day-to-day operational control of the
group. Mr. Harrison also heads the single team that now handles all global supplier
relationships.
As the same former Dixons executive points out, whether the combined group can win
even better terms from suppliers than Dixons and Carphone did separately will be critical
to the deal's success.
However, in many mergers of equals, one side eventually emerges dominant. The
difference in corporate mergers is that plenty of people, including staff, shareholders and
customers, mind a great deal if the honeymoon period eventually gives way to chaos and
acrimony.
1. When the two companies merged,
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A. all the stores included both companies.
B. staff worked in different colour coded areas.
C. Mr. James had anticipated problems with the color coding.
D. staff and customers received a personal message from the CEO.
2. According to the article, when companies merge
A. few problems occur in the early stages.
B. the sharing of responsibility must be clarified.
C. top executives find it easier than the rest of the staff.
D. bosses can often underestimate potential difficulties.
3. Before the Dixons Carphone merger, senior managers
A. discussed the sharing of power.
B. studied various mergers around the world.
C. agreed on future objectives.
D. based their plans on each company’s current vision.
4. According to the fourth paragraph, companies planning to merge should
A. share information with suppliers.
B. avoid rumours getting out about the merger at all costs.
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C. introduce staff to each other at the earliest point.
D. ensure that training is provided for all staff.
5. Dixons and Carphone staff
A. are working towards the same goals.
B. need to focus on selling their own company’s products.
C. are being trained to sell each other’s products.
D. have different experience and skills.
6. One of the main problems facing Dixons and Carphone now is
A. the fact that prices have increased.
B. the integration of their distribution centres.
C. the two top executives are unable to share responsibility.
D. negotiating better deals with global suppliers.
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MATCHING HEADINGS
TIPS:
#1: Read the headings and underline the keywords in order to understand each
heading and predict the contents of the paragraph with each heading.
#2: Skim the first paragraph to conclude the main idea, ignore unimportant
details. Focus on some of the first and last sentences. (Some paragraphs have no
topic sentence)
#3: Read all the headings again and choose the most suitable heading for the
passage.
*The heading that matches the most with the MAIN IDEA of the paragraph is the
correct heading. Some headings might only contain a detail of the paragraph.
#4: If you are debating between two or more headings, move on to the next
paragraph and come back later.
• Choose the correct heading for sections A-D and F from the list of headings
below.
• Write the correct number i-ix in boxes 1-5 on your answer sheet.
List of Headings
i. The probable effects of the new international trade agreement
ii. The environmental impact of modern farming
iii. Farming and soil erosion
iv. The effects of government policy in rich countries.
v. Governments and management of the environment.
vi. The effects of government policy in poor countries.
vii. Farming and food output.
viii. The effects of government policy on food output.
ix. The new prospects for world trade.
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Section A ..........
Section B ..........
Section C ..........
Section D ..........
Section E ..........
Section F ..........
Reading passage:
A The role of governments in environmental management is difficult but

inescapable. Sometimes, the state tries to manage the resources it owns, and
does so badly. Often, however, governments act in an even more harmful way.
They actually subsidize the exploitation and consumption of natural resources. A
whole range of policies, from farm-price support to protection for coal-mining, do
environmental damage and (often) make no economic sense. Scrapping them
offers a two-fold bonus: a cleaner environment and a more efficient economy.
Growth and environmentalism can actually go hand in hand if politicians have the
courage to confront the vested interest that subsidies create
B No activity affects more of the earth's surface than farming. It shapes a third of
the planet's land area, not counting Antarctica, and the proportion is rising. World
food output per head has risen by 4 percent between the 1970s and 1980s mainly
as a result of increases in yields from land already in cultivation, but also because
more land has been brought under the plough. Higher yields have been achieved
by increased irrigation, better crop breeding, and a doubling in the use of
pesticides and chemical fertilisers in the 1970s and 1980s.
C All these activities may have damaging environmental impacts. For example, land
clearing for agriculture is the largest single cause of deforestation; chemical
fertilisers and pesticides may contaminate water supplies; more intensive farming
and the abandonment of fallow periods tend to exacerbate soil erosion; and the
spread of monoculture and use of high-yielding varieties of crops have been
accompanied by the disappearance of old varieties of food plants which might
have provided some insurance against pests or diseases in future. Soil erosion
threatens the productivity of land in both rich and poor countries. The United
States, where the most careful measurements have been done, discovered in
1982 that about one-fifth of its farmland was losing topsoil at a rate likely to
diminish the soil's productivity. The country subsequently embarked upon a
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program to convert 11 per cent of its cropped land to meadow or forest. Topsoil
in India and China is vanishing much faster than in America.
D Government policies have frequently compounded the environmental damage
that farming can cause. In the rich countries, subsidies for growing crops and
price supports for farm output drive up the price of land. The annual value of
these subsidies is immense: about $250 billion, or more than all World Bank
lending in the 1980s. To increase the output of crops per acre, a farmer's easiest
option is to use more of the most readily available inputs: fertilisers and pesticides.
Fertiliser use doubled in Denmark in the period 1960-1985 and increased in The
Netherlands by 150 per cent. The quantity of pesticides applied has risen too: by
69 per cent in 1975-1984 in Denmark, for example, with a rise of 115 per cent in
the frequency of application in the three years from 1981. In the late 1980s and
early 1990s some efforts were made to reduce farm subsidies. The most dramatic
example was that of New Zealand, which scrapped most farm support in 1984. A
study of the environmental effects, conducted in 1993, found that the end of
fertiliser subsidies had been followed by a fall in fertiliser use (a fall compounded
by the decline in world commodity prices, which cut farm incomes). The removal
of subsidies also stopped land-clearing and over-stocking, which in the past had
been the principal causes of erosion. Farms began to diversify. The one kind of
subsidy whose removal appeared to have been bad for the environment was the
subsidy to manage soil erosion.
In less enlightened countries, and in the European Union, the trend has been to
reduce rather than eliminate subsidies, and to introduce new payments to
encourage farmers to treat their land in environmentally friendlier ways, or to
leave it fallow. It may sound strange but such payments need to be higher than
the existing incentives for farmers to grow food crops. Farmers, however, dislike
being paid to do nothing. In several countries they have become interested in the
possibility of using fuel produced from crop residues either as a replacement for
petrol (as ethanol) or as fuel for power stations (as biomass). Such fuels produce
far less carbon dioxide than coal or oil, and absorb carbon dioxide as they grow.
They are therefore less likely to contribute to the greenhouse effect. But they are
rarely competitive with fossil fuels unless subsidised - and growing them does no
less environmental harm than other crops.
E In poor countries, governments aggravate other sorts of damage. Subsidies for
pesticides and artificial fertilisers encourage farmers to use greater quantities than
are needed to get the highest economic crop yield. A study by the International
Rice Research Institute of pesticide use by farmers in South East Asia found that,
with pest-resistant varieties of rice, even moderate applications of pesticide
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frequently cost farmers more than they saved. Such waste puts farmers on a
chemical treadmill: bugs and weeds become resistant to poisons, so next year's
poisons must be more lethal. One cost is to human health. Every year some
10,000 people die from pesticide poisoning, almost all of them in the developing
countries, and another 400,000 become seriously ill. As for artificial fertilisers,
their use world-wide increased by 40 per cent per unit of farmed land between
the mid 1970s and late 1980s, mostly in the developing countries. Overuse of
fertilisers may cause farmers to stop rotating crops or leaving their land fallow.
That, in turn, may make soil erosion worse.
F A result of the Uruguay Round of world trade negotiations is likely to be a
reduction of 36 per cent in the average levels of farm subsidies paid by the rich
countries in 1986-1990. Some of the world's food production will move from
Western Europe to regions where subsidies are lower or non-existent, such as the
former communist countries and parts of the developing world. Some
environmentalists worry about this outcome. It will undoubtedly mean more
pressure to convert natural habitat into farmland. But it will also have many
desirable environmental effects. The intensity of farming in the rich world should
decline, and the use of chemical inputs will diminish. Crops are more likely to be
grown in the environments to which they are naturally suited. And more farmers
in poor countries will have the money and the incentive to manage their land in
ways that are sustainable in the long run. That is important. To feed an
increasingly hungry world, farmers need every incentive to use their soil and water
effectively and efficiently
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TRUE/FALSE/NOT GIVEN
NOTES
True: All parts of the statement agree with the information in the passage
False: At least one part of the statement contradicts the information in the passage
*Contradicting means the statement has the same type of information but with a
different meaning
Not given: There is no such type of information on this.
• It is important to remember that the answer is always in the text.

• Do not use your own knowledge about the topic in the text or make assumptions
– use only the information in the text.
• If you’re not sure of the answer, don’t spend too long thinking about it. Choose
an answer choice and move on.
STRATEGY
Step 1: Read the first statement and underline keywords.
Step 2: Scan for the first answer (notice synonyms and paraphrases)
Step 3: Read carefully and decide whether True/False/Not Given
Step 4: Repeat the same process.
Reading passage:
AUSTRALIAN CULTURE AND CULTURE SHOCK
Sometimes work, study or a sense of adventure takes us out of our familiar

surroundings to go and live in a different culture. The experience can be difficult, even
shocking.
Almost everyone who studies, lives, or works abroad has problems

adjusting to a new culture. This response is commonly referred to as ‘culture
shock’. Culture shock can be defined as ‘the physical and emotional discomfort
a person experiences when entering a culture different from their own’
(Weaver, 1993).
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For people moving to Australia, Price (2001) has identified certain values which
may give rise to culture shock. Firstly, he argues that Australians place a high value on
independence and personal choice. This means that a teacher or course tutor will not tell
students what to do but will give them a number of options and suggest they work out
which one is the best in their circumstances. It also means that they are expected to take
action if something goes wrong and seek out resources and support for themselves.
Australians are also prepared to accept a range of opinions rather than believing
there is one truth. This means that in an educational setting, students will be expected
to form their own opinions and defend the reasons for that point of view and the evidence
for it.
Price also comments that Australians are uncomfortable with differences in status
and hence idealize the idea of treating everyone equally. An illustration of this is that
most adult Australians call each other by their first names. This concern with equality
means that Australians are uncomfortable taking anything too seriously and are even
ready to joke about themselves.
Australians believe that life should have a balance between work and leisure time.
As a consequence, some students may be critical of others who they perceive as doing
nothing but study.
Australian notions of privacy mean that areas such as financial matters,

appearance, and relationships are only discussed with close friends. While people may
volunteer such information, they may resent someone actually asking them unless the
friendship is firmly established. Even then, it is considered very impolite to ask someone
what they earn. With older people, it is also rude to ask how old they are, why they are
not married, or why they do not have children. It is also impolite to ask people how much
they have paid for something unless there is a very good reason for asking.
Read the paragraph in bold in the passage and say which of these statements
is TRUE, which is FALSE, and which is NOT GIVEN.
1. Culture shock affects most people who spend time living in another country.
2. Culture shock affects certain types of people more quickly than others.
3. Culture shock only affects how people feel.
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Read the rest of the paragraph and do the following statements.
1. Australian teachers will suggest alternatives to students rather than offer one
solution.
2. In Australia, teachers will show interest in students’ personal circumstances.
3. Australians use people’s first names so that everyone feels their status is similar.
4. Students who study all the time may receive positive comments from their
colleagues.
5. It is acceptable to discuss financial issues with people you do not know well.
6. Younger Australians tend to be friendlier than older Australians.
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2 Management styles 1
Motivation 1
Yolanda is a senior manager of a car rental firm:
'I believe that all our employees can find
satisfaction in what they do. We give them
responsibility-the idea that the decisions th¢y
take have a direct impact on our success - and
encourage them to use their initiative - they
don't have to ask me about every decision they
make. My style of managemenfis participative -
employees take part in the decision-making
process. They are given a sense of
empowerment (see Unit 3).
'We hope this feeling of empow�rment gives employees the feeling that they are valued - with
management knowing the effort they make. We believe that all this leads to a higher sense of
motivation - interest, enthusiasm and energt-among employees. When everyone feels motivated,
morale is good and there is a general feeling of well-being in the organization. This leads to
improved job satisfaction.'
Motivation 2
Xavier is a factory manager:
'I don't believe in all this talk about motivation.
My subordinates - the people working under
me-are basically lazy. They need constant
supervision - we have to check what they are
doing all the time. Some people think this is
authoritarian, but I think it's the only way of
managing. There have to be clear rules of
discipline-you have to be able to tell
subordinates what is right and wrong, with a
consistent set of disciplinary procedures.
'Decisions must be imposed from above without
consultation - we don't discuss decisions with
workers, we just tell them what to do.'
Theory X and Theory Y

Xavier believes in what the US management thinker Douglas McGregor in The Human Side of
Enterprise called Theory X-the idea that people dislike work and will do everything they can to
avoid it.
Yolanda believes in Theory Y-the more advanced view that, given the right conditions, everyone
has the potential to find satisfaction in work.
12 Business Vocabulary in Use Advanced

2.1 Yolanda's employees are talking about her management style (see A opposite). Replace each
underlined item with an expression from A, keeping the rest of the sentence as it is. Pay attention to
the grammatical context. The first one has been done as an example.
1 She knows exactly what's involved in our jobs. She makes us feel she understands the effort we
make. vo..w.ed,
2 She encourages us to do things without asking her first.
3 The feeling among employees here is very good. We feel really involved and want to work towards
the company's goals.
4 We have a real sense of the idea that our efforts are important for the success of the company.
5 We have a real sense of liking what we do and feeling good when we achieve specific goals in our
work.
2.2 Look at Band C opposite. Read the text and answer the questions.
cGregor's ideas about managerial behaviour had a profound effect on

management thinking and practice. His ideas give a frame of reference for
managerial practice. His Theory Y principles influenced the design and
implementation of personnel policies and practices. Today they continue to influence
participative styles of management and the continued practice of staff performance
appraisal -the evaluation of employees' work.
McGregor defined theories that he felt underpinned the practices and attitudes of
managers in relation to employees. These were evident from their conversations and
actions. The two sets of ideas were called Theories X and Y. McGregor was saying
that what managers said or exhibited in their behaviour revealed their theories-in-use.
These led managers to pursue particular kinds of policies and relationships with
employees. Regrettably, McGregor's Theory Y was interpreted and promoted as a
'one-best-way', i.e. Y is the best! Managers or aspects of their behaviour became
labelled as Theory X, t�e bad stereotype, and Theory Y, the good. McGregor's ideas
were much informed by Abraham Maslow's model of motivation. People's needs
provide the driving force which motivates behaviour. Maslow's ideas suggested that
worker dissatisfaction with work was due not to something intrinsic to workers but to
poor job design, managerial behaviour and too few opportunities for job satisfaction.
1 What have the long-term effects of McGregor's thinking been, according to the article?
2 Which factors reveal whether a manager believes more in Theory X or Theory Y?
3 Name two things that result from these factors.
4 Did McGregor think that Theory X or Theory Y represented the best way of doing things?
5 Who influenced McGregor's thinking? What did this thinker believe to be the main factor in
determining people's behaviour?
6 Is employee dissatisfaction due to something within employees themselves, according to this
thinker? Why? I Why not?
Over to you
Write a memo to the head of your organization or one you would like to work for, suggesting ways to
encourage initiative among employees.
Business Vocabulary in Use Advanced 13

Hygiene factors
Yolanda, the car rental manager we met in the previous unit, went on a management course. She,
looked at the work of Frederick Herzberg*, who studied what motivates employees. Here are the
notes she took:
Some aspects of work can lead to dissatisfaction if they are not at a high
enough standard.
These are what Herzberg calls the hygiene factors:
supervision - the way employees are managed
policy - the overall purpose and goals of the organization
working conditions - the place where you work, hours worked, etc.
salary
peer relationships - how you relate to and work with others on the same level of
the organization
security - level of confidence about the future of your job
Other aspects of work can give positive satisfaction. These are the motivator factors:
achievement - the feeling that you have been successful in reaching your goals
recognition - the feeling that your employers understand and value what you do by
giving positive feedback, which means telling you what a good job you are doing
the work itself - the nature and interest of the job
responsibility - when you are in charge of something and its success or failure
advancement - how far you will be promoted in the organization and/or how far you
will go up the career ladder
personal growth - how you develop personally in your work, and your opportunities
to do this
Note the spelling

of career.
- Empowerment
Now look at the more recent idea of empowerment (see Unit 2).
Empowerment is the idea that decisions, where possible, should be made by
employees who are close to the issues or problems to be solved, without having to
consult their managers further up the hierarchy. In other words, managers have to
delegate as much as possible. Delegation is one of the keys to employees being
empowered in this way. Also, organizations become less hierarchical, with fewer
management levels.
*Work and the Nature of Man, 'One More Time: How Do You Motivate Employees?' Harvard Business Review, 2008.

3.1 Look at this job advertisement.
Match the underlined items (1-6) DUVAL LEGAL TRANSLATOR
with the hygiene factors in A •/\1\JD · ENGLISH-FRENCH
opposite.
SMITH Paris (1) €80,000
Large Anglo-French law firm seeks legal translator to translate and

correct French and English legal documents. Legal qualifications
and experience essential.
Based in the firm's busy translation department, you will work
(2) under the head of translation (3) as part of a team of five
translators (4) in line with the overall policies of the firm.
You will work (5) a 35-hour week, with a (6) one-year contract in
the first instance.
Email CV to jmartin@duvalandsmith.fr
3.2 Vanessa Holt got the job in the advertisement in 3.1 above. Three months later, she writes an email
to a friend. Complete the gaps in the email using expressions from B opposite.
••• From: vanessaholt@aol.com
Subject: Back to the UK?
Date: 14 November
To: jane.rourke@hotmail.com
Hi Jane, How are you? I've been at Duval and Smith, an Anglo-French law firm in Paris,
for three months now. I've had experience of translating a lot of different documents,
so (1) is interesting enough, but I don't get any
(2) for the work I do - my boss never says anything. He
never gives us any (3) for example, he never lets us deal
with clients directly. I never get a sense of (4) my boss
takes all the credit for the work we do.
There are quite good opportunities for promotion and (5) ............................................................................
at Duval and Smith, but I'm not sure I want to stay. I think there must be better opportunities
elsewhere for me to develop, and as (6) is important to me,
I've decided to move back to the UK and look for a job there.
So hope to see you in London soon - I'll give you a call.
All the best
3.3 Complete this table with words from C opposite.

Verb I Noun I Adjective
empower empowered
consultation consulted
- hierarchical
delegated
Over to yc:,11
Describe your own organization, or one you would like to work for, in relation to Herzberg's motivator
factors.

9 Team building
- Teams
In some (but not all) situations, tasks can
be achieved more easily by teams with a
common purpose rather than by
individuals. Of course, it's important to
develop teamwork through team
building so as to get the best from the
team. The.level of engagement and
commitment is the degree to which team
members feel involved with the team.
Here are some frequent combinations with
'team':
leader the person in charge of the team

effort the work done together by the team
performance the results that the team produces
team
dynamics the way the team works together
effectiveness the degree to which the team produces results
learning when people learn in teams rather than individually
.
Team players
Meredith Belbin* has identified these type's of team rriembers or Team Roles:
a The Implementer converts the team\ plah into"so�ething achievable.
b The cqordinator is a confident member who sets objectives and defines team members' roles.
c The Shaper defines issues, shapes ideas and leads�the action.
d The Plant is a creative and imaginative perion who supplies original ideas and solves problems.
e The Resource Investigator communicate} witnth� outside world and explores opportunities.
f The Monitor Evaluator sees all the possiqilitie� evaluates situations objectively and sees what is
realist�cally achievable. . .
g The Team Worker builds the team, suppo:rts others. and reduces conflict.
h The Completer Finisher meets deaqti12es, corrects,mistakes and makes sure nothing is forgotten.
Stages-of team life

'= ,;, -
The typical team goes through a seriesbf;stages:
.:::
a Formi!lg The group is anxious and feel� dependenJ oq a leader. The group tri.e s to discover how it
is going to operate and what the 'normal' waysiof working will be.
b StormingThe atmosphere may be C>.n� of conflict petwe�n members, who may resist control from
any onie person. There may be the f�eling'that the task cannot be achieved.
c Norming At this stage, members of the group f�el closer together and the conflicts are forgotten.
Mef'T'!bers of the group will start to sup�qrt- eac� other.
- There is increasingly the feeling that it is
possi�te to achieve the task.
d Perfor;ming The group is carrying ot.Jt the task (or 'Which it was formed. Members feel safe enough
to express differences of opinion, in relati�n to 0th�rs:
.
e Mourning The group's work is finisffed, apd .its m�mbers begin to have pleasant memories of their
activities and achievements., · -
ce;· ·.·c "'. c· .•
*Monogem!nt Teams: Why They Succeed or Fail, But1;erworth.,.�infmann, 1996.
26 Business Vocabulary in Use Advahced

9.1 Look at A opposite. Then read the article and answer the questions.
In many manufacturing industries, a daily meeting is used to keep the plant running smoothly;
but this level of daily communication is seldom employed in knowledge work or administration.
Sarah manages a team of nurses. Sitting together in the morning and building positive emotion,
energy, and shared tasks for the day helps build their focus on the work of the whole unit.
Shared knowledge helps limit mistakes and keep people engaged in learning. And knowing who
may need help distributes the work of the unit across the formal team structures. The practice
of daily meeting and discussion of tasks is another crucial way in which Sarah builds engagement.
Sarah's transparency in terms of performance requirements is another leadership practice
that reinforces engagement. Once a month, Sarah shares information with the group that shows
the unit's overall productivity numbers and their clinic-by-clinic performance. This monthly
meeting, to discuss the unit's performance and the breakdown of each team's performance,
creates performance pressure for all members of the team.
1 What is Sarah's job?

2 Two types of meeting are mentioned. How often does each of them happen?
3 How are knowledge work and administration different from manufacturing?
4 What are the advantages of regular meetings?
5 What negative things can regular meetings prevent?
6 What is the advantage of the monthly meetings?
9.2 Look at the types of team members in B opposite and say if these statements are true or false.
1 Implementers are not interested in final results.
2 Coordinators tend to take a leading, organizing role.
3 Shapers tend to follow what other people say.
4 Plants can be useful in providing new ideas when the team has run out of steam.
5 Some Resource Investigators probably need to use the internet.
6 Monitor Evaluators are not good at seeing all sides of a problem.
7 Team Workers may help to defuse arguments between members.
8 Completer Finishers are bad at finishing things on time.
9.3 Members of a team brought together to work on a design project said the following things. Match
what they said (1-5) with the stages (a-e) in C opposite.
1
We had such a great time working together.
2
We need to appoint a leader.
3
4
Who does Ana think she is, taking over and behaving like she's in charge?
5
We're really making progress now and we get on so well together.
Over to
��:l�'tl:t,."N"t
• What teams have you worked in or are you working in?

• Do you recognize the types in B opposite in your team?
• What role do you usually play?

!
24 Customer satisfaction
- ThefourCs
Susanna Chang, mobile !)hone marketing manager (see Unit 23), continues:
'The whole marketing!effort can be looked at from the point of view of customers, rather than the
company, with the four ts:
•, Customer solution- we aim to find a solution to a customer "problem" by offering the right
combination of product(s) and service(s) to satisfy particular customer needs. For example,
pay-as-you-go was a dream solution for parents worrie,d about children running up big
phone bills.
• Customer cost - the price paid by the customer for the product. It includes the "price" related
to not buying another product of the san;ie or another type. For example, someone who buys
a sophisticated'mobile may not then have the money fo buy a laptop or tablet that they
wanted.
•, Convenience-idistributing our products_ in the way that is most convenient for each type of
customer. We have to decide, for instance, how many new shops to open and where they
should be. We also have to think about the people who prefer to buy online.
• Communication with the customer- customers are informed about products through
advertising, and so on, but the communication is two-way. Customers also communicate with
us, for example through telephone helplines. This is a good way for us to find out more about
what our customers want. We can then change or improve our offering, and get ideas for new
offerings.
'Thinking of the marketing mix in these terms h�lps us maintain a true customer orientation or
customer focus.'
- customer eKpec-ations
When customers get what they hoped for, their :expectations are met and there is customer
satisfaction. Products, sadly, often fall below expectations.
When expectations are exceeded - you get more than you expected - there may even be customer
-
delight (see Unit 12), but this partly depends on how involved you are in the purchase. There is a
difference in your degree of involvement when you buy different products. For example, there is low
involvement when yog buy something ordinaryJike petrol, and high involvement when you purchase
something emotionally important such as a family holiday.
Customer dissa.tisfaction
Research shows that �5 per cent of dissatisfied tustomers don't complain; they just change
suppliers. Satisfied customers create new busin;ess by telling up to 12 other people. Dissatisfied ones
will tell up to 20 peopfe* � Word-of-mouth is a powerful form of advertising.
Some say that encouragf:ng customer loyalty or allegiance is important for profitability. They say
that customer retention - keeping existing customers - is key. Getting repeat business is five times
cheaper than finding new customers.
Customer defection must be reduced as much as possible of course, but a company can learn from
lost customer analysis: analysing its mistakes by asking those who do leave why they defected.
Services like mobile phone and broadcasting companies have to reduce churn- the percentage of
customers who change suppliers or who stop using the service altogether each year. This is very
costly; the companies would prefer, of course, to keep existing customers and add more in;order to
bu
_ ild their customer base. ;
*Philip Kotler and Kevin Keller::Marketing Management, Pearson, 2008.

24.1 A new customer for Sky satellite television services is talking. Look at A opposite and find which 'C'
he is referring to in each of the sentences.
1 I wanted the satellite dish to be installed at a time that suited me.
2
I had some questions about how to use the service,
so I looked at the Sky website. It answered all my gueries.
3
The cost is very reasonabl_e �onsider_iAg all the channels you get.
4
I wanted a TV service with good reception.
The ordinary TV signal in my area is very bad.
24.2 Match the two parts of these sentences containing expressions from B opposite.
1 The systematic analysis of D a loyalty programs for years and says the best
customer claims constitutes an programs allow customers to earn points outside
important source of information the business but redeem them inside.
on customer D b satisfaction, or more likely, on customer
2 Dreze has researched customer dissatisfaction.
3 The company's acquisition of its D c delight by delivering more than you promise.
rival led to customer D d defections, due to declines in service quality.
4 Maintaining customer
5 You can sometimes obtain
D e allegiance results from continuing to provide
excellent service, which dissuades your customers
customer from wanting to go elsewhere.
24.3 Match the words and expressions in C opposite to the examples below.
1 A language school that ran courses for a company's employees - the company was so pleased
with the result that it asked the school to run more courses. (4 expressions)
2 The people who use a particular supermarket chain, considered as a group.
3 A mobile phone company that grew quickly despite not advertising much - users just told
their friends how good it was.
4 A train company with such bad services that 40 per cent of passengers stopped using its trains
and took other forms of transport.
5 A newspaper website where half the subscribers left each year, but were replaced by new
subscribers.
6 The same newspaper website's questionnaire to customers that left, asking them to give their
reasons.
Over to fC1iJ
� '"' �- :ail."'1o"W'�1:��
Think about coffee shops, clothes shops, supermarkets, airlines, or the make of car that you drive, or
would like to drive. Are you/ Would you be a loyal customer? How is your loyalty rewarded?

22 Risk and uncertainty
- Incurring risks
Businesses take, run, confront or, more formally, incur risks of different
kinds. They have to deal with uncertainty, not knowing what is going to
happen in the future. Experts in risk analysis try to calculate the
probability, the likelihood or, more informally, the odds of different events
happening in the future.
Business managers have to think about these kinds of risk for their
organization.
a economic� the state of the economy as a whole might affect its
performance
b financial - it might suffer from bad business decisions, and/or from unwillingness of investors and
lenders to continue funding it
c human - its employees or managers might make a harmful mistake ·
d reg'ulatory- its activities might be restricted in new ways, or become illegal
e environmental - its activities might damage rivers, the atmosphere etc.
f reputational - its activities or behaviour might be criticized, with its performance suffering
Managers attempt to reduce or mitigate risk. It can be minimized, but never completely eliminated -
removed.
Risk analysts and others talk about worst-case scenarios, the worst possible combination of negative
future events.
I
Attitudes to risk
Attitudes to risk - how people feel about it- vary widely.
Adrienne is an entrepreneur. Entrepreneurs are knovm for their willingness
to take risks - their risk appetite. She is a risk-taker who has started several
businesses - two of them failed but one is very profitable. She tries to analyze
the risk factors involved in a potential business - the things that will
contribute to its success or failure.
Bernardo runs the family business founded by his grandfather. He i� more
risk-averse - he has a low risk appetite and is very cautious. For example,
he tries to limit his risk exposure by only trying to enter new markets where
he is sure of success. He believes in risk avoidance. His risk strategy- his
plan for dealing with risk - is basically to avoid it as much as possible.
Insurance
You can reduce uncertainty and take out insurance against negative future events. For example,
businesses can insure against risks such as damage to their property, theft of equipment and goods,
negligence - actions (or inaction) by employees that harm other people- to maintain business
continuity and against the cost of business interruption (see Unit 21).
The insurer will ask what level of cover is required - how much the insured business will receive if it
makes a claim. The insured firm agrees to an excess- a particular amount that will be deducted if it
makes a claim. In relation to all this information, the insurer issues-an insurance policy, and tells the
business how much it will have to pay monthly or yearly in insurance premiums for the particular
insurance cover.
Insurance companies have risk analysts who calculate the probability of various future events, and how
much the company will have to pay out if they happen.

22.1 Match these situations for the different companies below with the types of risk a-f in A opposite.
1 The government tells housebuilders that houses will have to be better able to resist fire.
2 A retailer sees reports that activity across the economy as a whole might decrease.
3 A waste recycling plant fears that poisonous chemicals will leak into nearby rivers.
4 A travel company's cruise ship is involved in a collision and lots of people see this on TV.
5 A power company finds that workers have been falsifying safety reports.
6 Shares in a car company fall when sales of its new models are disappointing.
22.2 Executives from various companies are talking about their attitudes to risk. Use appropriate forms of
combinations containing 'risk' in B opposite to complete what they say.
1 We have managers whose job is to find the right combination between activities that are risky,
and those that are less risky - they are the ones who work on our company's ...
2
When we look to export to new markets, there's always the things that can go wrong - we have
to look at all the ...
3
We've invested heavily in some politically unstable countries, so we have a certain degree of ...
(2 possibilities)
4
We put money into what we consider to be the safest activities - you could say that we have
a high level of ...
5
The economy of our country needs people like this if new companies are going to be started -
we need people who are real ...
6
We are a solid business growing at 2 per cent a year. We stick to what we know and have
a low ...
22.3 Look at C opposite and put these events into the correct order.
a Two weeks later, Greta made a claim for €550,000 for compensation to guests for their
inconvenience, lost income for cancelled bookings and the cost of new door locks.
b The insurance company agreed to provide cover of €1 million for this specific risk, and an excess of
' €25,000. She paid a monthly premium of €500.
c The claim took the insurance company six months to investigate and then they paid out €500,000
after deducting the excess.
d She was very glad to have obtained this cover because, one day, computer hackers attacked the
hotel's computer system so that guests were unable to lock and unlock their room doors with
their key cards - about 20 guests were locked in and another dozen or so were locked out as it was
impossible to open the doors manually.
e When the insurance company paid out, Greta was relieved that she had insured against this worst
case scenario, even if she had not realized exactly what it would consist of!
Greta had to call locksmiths to open the doors, and she had to cancel guest reservations for the
following week while the locks were changed.
g A hotel owner in Austria, Greta Schmidt, took out insurance against business interruption, in
addition to other more usual forms of insurance against fire, damage to buildings and so on.
Over to _ :_
If you work, are you a risk-taker, or are you risk-averse? Give examples. If you don't work, think
about a job you would like and decide if you would like to be a risk-taker.

34 Mergers, takeovers and sell-offs
A Stakes and joint ventures
a stake 
an interest  in a company the shares that an investor has in a company
a holding 
 stake when more than half of a company’s shares are owned by one
a majority  interest
 holding investor, giving them control over how the company is run
 stake when fewer than half of a company’s shares are owned by one
a minority  interest
 holding investor
Two companies may work together in a particular area by forming an alliance or joint venture –
they may remain separate companies, or form a new company in which they both have a stake.
B Mergers and takeovers 1

join
2
combination
3
reduction in the number of
Yahoo on Wednesday rejected allegations by companies
D elta Air Lines and Northwest
Airlines are to merge1 in a deal
that will create the world’s biggest
Carl Icahn, the investor, that it had damaged the
chances of any acquisition8 by Microsoft with an
4
5
company that might be
bought
expensive worker compensation plan. The purchase
carrier. The merger2 could well internet company said Mr Icahn’s reference to its
6
possible buyer
7
bring about further consolidation3 in employee plan as a poison pill9 ‘could not be buy
8
the US airline industry. further from the truth’. taking control by buying most
or all of its shares
9
something that makes a
Commerzbank, until not long ago

seen as a poor fourth in German
C ontinental has potential investors which
could act as white knights10 as the German
company less attractive
to buy
10
companies which can save
motor supplier seeks to fend off11 an €11.3
banking – and seemingly inevitable another from being bought
billion ($17.6 billion) hostile bid12 from
prey4 for a takeover5 – has against their will
Schaeffler, its privately owned rival. Continental is
become a predator6, and is about 11
resist
in talks with five strategic and financial investors
to acquire7 its rival, Allianz. 12
unwanted attempt to buy it
that are prepared to pay a higher price than
(opposite = friendly bid)
Schaeffler’s takeover bid13 launched last week. 13
attempt to buy it
C Conglomerates
1909 Lonrho began operating in Africa.
1961 Tiny Rowland started to transform the company into a worldwide conglomerate1.
1995 Lonrho’s African non-mining businesses had expanded, with the parent company2 controlling
approximately 90 subsidiaries3 that had diversified into4 a wide range of business activities.
1995 Lonrho decided to restructure5 these African non-mining businesses into five core activities6:
motors, agribusiness, distribution, hotels and property, and construction.
1998 These businesses were demerged7 in a process of divestment8 and a new company was
created.
2000 Lonrho began to refocus9 and to follow a strategy of divesting10 its non-core assets11 in order
to pay off its debt.
2005 Most of Lonrho’s assets had been sold and the disposal12 programme completed.
2006 Lonrho starts to rebuild an African conglomerate.
1 5 9
large group of companies reorganize change its activities
2 6 10
main company main activities selling
3 7 11
smaller companies separated non-essential property, etc.
4 8 12
become involved in selling unwanted companies sales
76 Business Vocabulary in Use Intermediate

Exercises
34.1 Match the two parts of these sentences containing expressions from A and B opposite.
1 The Canadian government decided to sell up to 45 per cent of Air Canada to the public
2 The BBC has a minority
3 Russia’s second biggest airline is trying to buy a stake
4 China signed an agreement with Airbus to develop jointly a regional jet. The programme will be
managed through a joint
5 New Tribune shares will be issued to company employees over time, and they will eventually gain
a majority
a venture company in which China will have a 46 per cent stake, Airbus 39 per cent and Singapore
Technologies 15 per cent.
b and keep a 55 per cent controlling stake.
c interest in the successful satellite channel UK Gold.
d holding of the company’s common shares.
e in a US airline so that they can work out a marketing alliance.
34.2 Which expressions from A and B opposite do the underlined words in these headlines refer to?
1 4
GERMAN TRUCKMAKER MAN IN FRIENDLY UK COMPANIES UP FOR
APPROACH TO SWEDISH RIVAL SCANIA SALE TO FOREIGN BUYERS
2 5
FORD TO BREAK UP ITS EUROPEAN Conoco in combined operation with
LUXURY DIVISION TO RAISE CASH origin energy in canadian natural gas
3 6
Midwest rejects airtran’s ‘inadequate’ MFI IN POSSIBLE COMBINATION
offer of $11.25 per share WITH HOMEFORM
34.3 Use correct forms of expressions from C opposite to complete what a journalist says about
conglomerates.
If a large company that has previously (1) d i a wide range of
activities then finds that some of these are becoming less profitable, it may decide to sell those
(2) s that do not fit in with its overall strategy. The board of the
(3) p c may talk about (4) d these activities and
(5) r so that they can get out of particular businesses. In this case, the group makes
(6) d of its (7) n -c a and uses the
money from these (8) d to invest in and concentrate on its (9) c
activities.
Over to you
• Why do companies form joint ventures?
• Describe a recent merger in your country or elsewhere. Why did the companies merge?
• What is the core activity of your country’s biggest company?
Business Vocabulary in Use Intermediate 77

32 Share capital and debt
A Capital
Capital is the money that a company uses
to operate and develop. There are two SHAREHOLDERS
main ways in which a company can raise
capital – find the money it needs: it can
either use share capital or loan capital
(Share capital) (Dividends)
from investors. These are people or
organizations who put money in, hoping
to make more money from their
investment or stake in the company COMPANY
(see Unit 36).
B Share capital Loans

Repayments
and interest
Share capital is contributed by
shareholders. They are individuals or
organizations that have provided or put
up money to buy shares or stock in the LENDERS
company. Each share represents a part of
the ownership of the company. If you hold
shares in a company, you may receive dividends periodically, usually based on the company’s
earnings – profit – in the relevant period, if any. But some companies do not pay dividends, and
investors make a profit as the company grows and the value of its shares increases. Capital in the
form of shares is also called equity.
C Loan capital
A company can also obtain capital in the form of money lent by investors who do not then have part
of the ownership of the company. This is loan capital; an investor or a financial institution providing
money in this way is a lender, and this money is referred to by them as lending.
The company borrowing money is the borrower and refers to the money as borrowing or debt.
A company’s total debt is its level of indebtedness.
The sum of money borrowed is the principal. The company has to pay interest – a percentage of the
amount it has borrowed – on its debt whether it has made a profit in the relevant period or not.
D Security
Borrowing by companies and other organizations is often in the form of bonds or debentures
that they issue – make available and sell to lenders. Different types of bonds and debentures have
particular technical conditions.
One of these conditions is whether there is collateral or security for the loan – if the borrower
cannot repay the loan, the lender has the right to take equipment, property, etc. from the
borrower and to sell it in order to get their money back. This equipment or property may be an asset
that was bought with the loan (see Unit 30).
E Leverage
The amount of loan capital that a company has in
Note
BrE/AmE: leverage, highly leveraged

relation to its share capital is its leverage. A company
BrE only: gearing, highly geared
with a lot of borrowing in relation to its share capital
is highly leveraged. A company that has difficulty in
making payments on its debt is overleveraged.
72 Business Vocabulary in Use Intermediate

Exercises
32.1 Look at A and B opposite. Then read the article and match the figures with the things to which
they refer.
NEWSONLINE
Home News Wo r l d Business Food Te c h n o l o g y Science
B A N K O F A M E R I C A T O R A I S E $ 1 0 B I L L I O N I N C A P I TA L
Bank of America, the largest US bank, said on share price falling, demonstrated the effect of the
Monday it would raise $10 billion in capital and crisis on banking’s surviving firms.
halve its dividend in an effort to survive the Bank of America said it would cut its dividend by
banking crisis. The moves came as the bank half to 32 cents, giving it an extra $1.4 billion in
reported earnings of $1.2 billion in the most capital each quarter. The latest capital raising,
recent period – a third of the level of a year which follows a big capital raising by the bank
ago. Ken Lewis, Bank of America chief earlier this year, would involve issuing stock.
executive, said it was “important to raise “Both economic and financial market conditions
capital to very high levels in this uncertain have changed significantly in the past two
environment”. months,” Mr Lewis said. “The outlook is for still
“These are the most difficult times for financial weaker economic performance which we expect
institutions that I have experienced in my 39 will reduce earnings.” Of the dividend cut, Mr
years in banking,” Mr Lewis said. But BofA’s Lewis said: “We cannot pay out what we have
announcement on Monday, which sent its not earned.”
1 $10 billion a BofA’s profit in the latest period

2 $1.2 billion b the amount of capital that BofA wants to raise
3 39 c the amount per share of its latest dividend
4 $1.4 billion d the number of years that BofA’s CEO has worked in the banking industry
5 32 cents e the amount of extra capital that BofA will have in each three-month period
following the reduction in its dividend
32.2 Answer these questions, using expressions from C, D and E opposite.

1 You want to raise money for your company, but you do not want to sell shares. What can you use
instead? (2 expressions)
2 You want to raise money and you want to reassure lenders that they will get their money back if
your company cannot repay. What would you offer them? (2 expressions)
3 You are interviewed by a financial journalist who wants to know why you are borrowing money.
What do you tell them that you want to increase? (2 expressions)
4 The financial journalist writes an article saying that your company has a lot of debt in relation to
its share capital. Which two expressions might she use in her article?
5 A few months later the financial journalist writes an article saying that your company has too
much debt in relation to its ability to pay. Which expression might she use in her article?
Over to you
• Have you ever thought of starting your own business? What sort of business would it be? Where
would you get the capital?
• Where do existing companies in your country normally get capital? Describe two methods of doing
this, and give some of the advantages and disadvantages of each.
Business Vocabulary in Use Intermediate 73

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R4 PRACTICE R4 LECTURER: NG THAO TRANG

MATCHING SENTENCES (U7)

• Read the article below about management styles.

• Choose the best sentence (A–G) to fill each of the gaps.

• For each gap 1–5, mark one letter (A–G).

• Do not use any letter more than once.

• There is an example at the beginning.

- Read through the whole text.

What the best parents can teach us about management

McGregor's research in the US from the mid-1930s to the 35 mid-1950s, was

There are many easy-going, creative workplaces relying on outsourced data

"The permissive parent attempts to behave in a non-punitive, acceptant, and

C. Nevertheless most managers tend to be Type X these days.

D. However, there are differences between parenting and management.

G. There are two accepted ways to deal with this.

MATCHING STATEMENTS (U8)

Example: Team members lacked the desire to continue working. D

1. Staff and employers disagree about the value of specific training.

2. The leader behaved in an unacceptable way.

3. Disagreements jeopardized the final outcome of the project.

4. A company regretted not using experts.

5. Problems should be resolved by the whole team.

6. Team members were not guided by their team leader.

7. Team members were against the idea of the project.

CLOZE READING (4 OPTIONS)

• Read the article below about dealing with finances.

• Choose the best word to fill each gap from A, B, C or D.

• For each question 1–15, mark one letter (A, B, C or D).

• There is an example at the beginning.

Dealing with finances

Furthermore, limited organisations also have to pay (10) …... to

0 A ideas B plans C eggs D food

1 A equity B capital C collateral D cashﬂow

2 A bankruptcy B administration C liability D collapse

3 A accumulate B acquire C invest D accrue

4 A make B do C take D have

5 A debts B liabilities C debtors D capital

6 A deposits B charges C debts D subsidies

7 A credit B share C return D interest

8 A mortgage B overdraft C dividend D warranty

9 A loans B instalments C subsidies D budgets

10 A shares B dividends C fees D grants

11 A regarding B according C depending D concerning

12 A return B charge C interest D collateral

13 A poor B wrong C weak D bad

14 A warranty B guarantee C promise D agreement

15 A red B black C dark D pink

MULTIPLE CHOICES (4 OPTIONS) (U12)

• Read the article below about the Dixons Carphone merger.

importance of open communication, noting that two-thirds of successful acquirers shared

1. When the two companies merged,

A. all the stores included both companies.

B. staff worked in different colour coded areas.

C. Mr. James had anticipated problems with the color coding.

D. staff and customers received a personal message from the CEO.

2. According to the article, when companies merge

A. few problems occur in the early stages.

B. the sharing of responsibility must be clarified.

C. top executives find it easier than the rest of the staff.

D. bosses can often underestimate potential difficulties.

3. Before the Dixons Carphone merger, senior managers

A. discussed the sharing of power.

B. studied various mergers around the world.