Test 8B (Units 15-16) Name: Mark:

Reading Comprehension (20 points)

1 Read the webpage. Then write T (true), F (false) or DS (doesn’t say) next to the sentences below.
(10 points)

FE101 – Running your own business

This course is for people who would like to start their own business but need help getting it started. Many
small businesses fail in the first few years, because their owners haven’t got enough information or don’t
know how to plan ahead. This course will prepare you to run your small business successfully. You will
learn about finance, law, insurance and marketing.
Course Structure
First Month: Learn how to finance your business. Get real information about handling business accounts,
credit lines, loans and payment terms.
Second Month: Find out what a balance sheet and a cash flow statement are and why you need to
understand them.
Third Month: Find out how to reach potential customers. Study a variety of marketing strategies
and techniques.
The course is held one night a week and on some Saturdays for 13 weeks. The course starts in September,
January and April.
Please Note:
1. Students must be over 20 years old.
2. Our teachers do not provide advice on specific business ideas.
For schedules and prices, click on the course number above.
Click here to fill in a registration form. For more information, please contact Jules Reardon
at jules@hatton.co.uk

.......... 1. Many small businesses fail because they take out the wrong business account.
.......... 2. You will learn who the best providers of insurance are on the course.
.......... 3. The course teaches you about money issues for small businesses.
.......... 4. Most of the classes are on Saturdays.
.......... 5. You can apply for the course online.

2 Complete the sentences. (10 points)

1. The name of this particular course is .................................................................................................................................. .
2. The first part of the course teaches you ...............................................................................................................................
3. The second part of the course teaches you the importance of understanding .....................................................................
4. You can’t come on the course if you’re 18 because .............................................................................................................
5. You can find out how much the course costs by ..................................................................................................................
 Test 8B: Units 15-16

Vocabulary (50 points)

1 Add one of the words below to each of the word groups. (6 points)
encrypted  lend  original  vehicle  fraud  place an order
1. pay off  borrow  ...........................................................
2. e-risks  fire  ...........................................................
3. browse  shopping cart  ...........................................................
4. stylish  striking  ...........................................................
5. negligence  debt  ...........................................................
6. bandwidth  domain name  ...........................................................
2 Circle the correct answer. (10 points)
1. The website allows you to showcase / gather / impose feedback on your products from customers.
2. She carefully read the collateral / equity / terms and conditions for the loan.
3. Max went into the value / misunderstanding / branch of his bank to speak to someone face-to-face.
4. The shopping cart / escrow service / standing order will release the funds after delivery of the goods.
5. The company denied / sued / secured having an unsafe workplace.
6. The e-mail asking for our bank details and password was a scam / packaging / host.
7. Most e-commerce hosts offer clients a template / composition / venture to help them design their website.
8. We use social media as a traffic / platform / retail for e-commerce.
9. The money to pay off / customise / fine the bank loan has come from increased sales.
10. The projection / terms / liability of our sales for next year is looking really good.
3 Circle the correct response. (8 points)
1. Why should I take out this insurance policy? 5. What does identity fraud mean?
a. Because we need money for new equipment. a. Using someone’s credit card without permission.
b. It covers you for a wide range of things. b. Pretending to be someone else.
c. Both a and b. c. Both a and b.
2. What are you offering as collateral for the loan? 6. Do you think we can take a payment holiday?
a. My house. a. I’ll contact the bank and ask them.
b. One of the company buildings. b. Yes, we haven’t been away for a long time.
c. Both a and b. c. Both a and b.
3. The website isn’t letting me place an order. 7. Why don’t you claim on the insurance?
a. That’s good value for only $60. a. It’ll put the cost of the premium up.
b. You need to pay for it first. b. Because we’ll lose the no-claims discount.
c. Both a and b. c. Both a and b.
4. It will be a lot of work to set up an e-shop. 8. The company was fined.
a. Yes, but I think it’s worth the effort. a. I’m glad it’s doing so well.
b. Yes, but it covers us for fire and theft. b. How much did they have to pay?
c. Both a and b. c. Both a and b.
4 Complete the sentences with the words below. (8 points)
negligence  worth  secured  browsed  arrangement fee  withdrawn  legal  personal guarantee
1. The company was sued for ........................................................... after an employee was injured at work.
2. The Managing Director gave the bank a ........................................................... that the loan would be repaid.
3. The loan was ........................................................... against the company buildings.
4. We’ve already ........................................................... over £10,000 in cash this month to pay for various expenses.
5. The ........................................................... for the loan is £175.
6. The business was fined and ordered to pay the ........................................................... fees of the injured employee.
7. He ........................................................... the Internet for several hours looking for the best insurance policies.
8. All that advertising was expensive, but it was ........................................................... the effort.
 Test 8B: Units 15-16

5 The words in bold are in the wrong sentences. Write them next to the correct sentences. (10 points)
1. The packaging on our website has increased a lot after all that advertising.
2. The company took our money, but had no premium of actually sending the goods!
3. We’ve improved our venture so it contains much less plastic.
4. The standing order who set up the company has made millions of dollars.
5. I’m thinking of starting a new business traffic selling imported Japanese food.
6. Your credit limit is where you put things you want to buy online before paying for them.
7. The entrepreneur for our insurance is £478 per month.
8. I’ve set up a policyholder to pay for the electricity and water each month.
9. We’ve reached our intention, so we can’t borrow any more money.
10. According to our records, the shopping cart for this insurance is Mrs J Watson.
6 Circle the correct answer. (8 points)
1. If you want to protect your computers from 5. A … is someone who is making a claim against the
damage from hackers, etc., you need … . insured person.
a. public and employer’s liability insurance a. business account
b. professional indemnity insurance b. third party
c. e-risks insurance c. credit rating
2. Insurers sometimes provide a … car while your 6. A … is money you get off your insurance policy.
own car is being repaired. a. no-claims discount
a. courtesy b. legal fee
b. vehicle c. credit rating
c. neutral 7. If you … , it means you’ve spent more money than
3. If something is … , it usually means it’s very you had in the bank.
high quality and original. a. deny negligence
a. secured b. accept liability
b. handmade c. go overdrawn
c. compatible 8. We’ve just … details of the new product on
4. With two people who don't speak the same our website.
language, it's easy for ... to occur. a. suffered
a. feedback b. posted
b. misunderstandings c. funded
c. intensions

Functional Language (10 points)

Match the sentences in A to the responses in B.

A B
1. I’m sure we’ll meet all your quality requirements. .......... a. Then you must purchase employer’s liability
2. You get unlimited bandwidth. insurance.
3. We’d be open for business 24/7. .......... b. Fantastic! Did you find any you liked?
4. We provide services or advice in our work. .......... c. We’ll need that when the site becomes popular.
5. Does a line of credit have to be secured against .......... d. They’ll check if we’ve got a good business credit
collateral? rating and if we're profitable.
6. What will the bank require to approve this line of .......... e. No, we just ask for full payment on receipt of the
credit? goods.
7. I need a supplier who can make high-quality light .......... f. Yes, but we’ve shown the bank evidence of this.
fixtures. .......... g. Items returned within 30 days get a full refund.
8. And what is your returns policy? .......... h. Could you send me some samples, so I can check
9. Do you require an advance payment when we place how good the products are?
an order? .......... i. We’ve been making those for over thirty years so I’m
10. I’ve already been looking at domain names. sure you’ll be happy with our products.
.......... j. That will give us more time to sell more products!
Test 8B: Units 15-16
 Test 8B: Units 15-16

Listening Comprehension 20 (10 points)

1 Listen to a radio programme and complete the sentences. (6 points)

1. The radio programme is aimed at ............................................................................................................................. .
2. The topic of today’s show is ............................................................................................................................. .
3. Dan says many new businesses don’t .............................................................................................................................. for about two years.
4. Businesses that don’t spend enough on market research .............................................................................................................................. .
5. Business owners should discover if .............................................................................................................................. their products or services.
6. Dan suggests you must also find out the .............................................................................................................................. of the target
population.
2 Listen again and tick (✓) the things Dan mentions. (4 points)
.......... 1. How long it can take a new business to become profitable.
.......... 2. Taking loans in order to start a business.
.......... 3. Asking friends and family for their opinions about your business idea.
.......... 4. How much money market research costs.

Writing (10 points)

Imagine that a friend is thinking of setting up a new business selling high-quality clothes. He / She has
asked for your advice about starting the business. Write an e-mail to your friend, giving your advice.
Include information about:
• banking
• insurance
• using global e-commerce