While company layoffs often appear, at first glance, to be the most decisive and effective method by

which a business can save money and recover costs, they provide only a short-term solution to a
company's problems and may prove to be detrimental to a company in the long-term. The costs of
downsizing can sometimes outweigh its benefits. Evidence repeatedly suggests that layoffs rarely reduce
a company's costs by as much as expected and that layoffs can significantly reduce a company's
performance. This can often lead to reduced stock values and insecurity among shareholders.
Employers, looking at salaries as strictly a budget item, may forget that employees are not merely an
expense, but a long-term investment. Wages can be better understood as payments into an employee's
capital of skill and commitment. The announcement of a round of layoffs can undermine this important
investment. Layoffs not only affect those low-performing employees whose jobs have been cut, but they
also create an atmosphere of uncertainty, which causes others to leave. Layoffs can therefore lead to a
reduction in the quality and productivity of the overall staff.
If a reduction in payroll expenses does not already seem to be eclipsed by the reduction in performance,
also consider the possible affect that this might have on shareholder morale. Layoffs communicate to the
stockholders that a company is in severe crisis. They can therefore lead to a decline in stock value which
often, in turn, compounds the very problem that the layoffs sought to resolve.
1. What is this text mainly about?
A. The importance of budget analysis
B. The negative effects of downsizing staff (akhir paragraph 1, paragraph 2 dan 3 menunjukkan
efek negatif dr downsizing staff)
C. The best way for companies to increase value
D. The various factors that contribute to shareholder’s morale
E. The reduction in payroll expenses
2. The word detrimental in paragraph 1, is closest in meaning to…  merusak, mengganggu
A. Positive  positif
B. Temporary  sementara
C. Superficial  palsu
D. Harmful  berbahaya
E. Beneficial  menguntungkan
3. According to the text, why does a company lose high-performing workers in a round of layoffs?
(HIGHLIGHTED BIRU PARAGRAF 2)
A. They are usually the highest paid and therefore the first to be laid off.
B. They often leave voluntarily due to the climate of uncertainty (low-performing workers sdh
dipecat, tp yg high-performing workers memilih utk pergi krn the climate of uncertainty di
dlm perusahaan)
C. They usually leave because they are worried about the stock value
D. They become frustrated with their coworkers’ lack of productivity
E. They often stay due to the climate of uncertainty
4. According to the text, which of the following is least important to the overall success of a
business?
A. Employee commitment
B. Payroll expenses
C. Shareholder confidence
D. Employee skill
 E. Stock sold (stock sold ini lebih membutuhkan peran dr shareholders jd peran stock tdk trllu
penting)
5. The word compounds in the final sentence of the text is closest in meaning to… 
menggabungkan
A. Multifaceted  banyak sisi
B. Complex  kompleks, rumit
C. Makes greater  membuat semakin besar
D. Chemical combinations  kombinasi bahan kimia
E. Sepulchre  kuburan, makam
6. The word “This” on the final sentence of paragraph 1 refers to…
A. Shareholders
B. Owner of the company
C. Layoff (subjek dr kalimat sebelumnya adalah layoff)
D. Employee
E. Payroll expenses
Many parts of the Southwestern United States would become deserts again without the waters of the
Colorado River. A system of thousands of miles of canals, hundreds of miles of tunnels and aqueducts,
and numerous dams bring Colorado River water to the area. The Imperial Valley in Southern California is
an example of such a place; it is a vast and productive agricultural area that was once a desert. Today,
2,000 miles of canals irrigate the fertile land and keep it productive.
7. Which of the following is mentioned in the passage as a way that Colorado River water gets to
the Southwest?
A. By truck
B. In bottles
C. In wells
D. Through canals (line 2 menunjukkan cara air dr Colorado River berpindah)
E. By car
8. According to the passage, the Imperial Valley…
A. Is a desert today
B. Is located in Colorado
C. Does not require irrigation
D. Has no water
E. Produces a lot of agricultural goods (line 4 menunjukkan bhw Imperial Valley merupakan
tempat yg menghasilkan agricultural goods dlm jumlah yg besar dan daerahnya luas)
9. What is the best word to replace vast ?  luas, sangat besar
A. Small  kecil
B. Enormous  besar
C. Tiny  kecil
D. Thin  tipis
E. Thick  tebal
10. The word “it” in the final sentence of the passage refers to…
A. Colorado River
B. Water
C. Canals
D. The Imperial Valley (subjek dr kalimat sebelumnya adalah Imperial Valley)
E. Deserts