Full name: …………………………… EOI 3 - MIDTERM TEST
Class: ………………………………… Time allowed: 90 minutes
Code: 03
Part 1. READING (5 points)
Read the following text and do the tasks below.
STARTING ON THE PATH TO SUCCESS?
1. It once took a company a long time to be worth a billion dollars. Today dozens of tech
start-ups are achieving this level of economic success within their first five years. While
successful tech start-ups have the ability to change traditional industries, many are still
not successful. Companies should focus on easy access, the use of free content, creating
a product people need, and the time it takes to be successful.
2. So what is needed to be a successful start-up? Firstly, you do not have to create a
completely new product to sell. One approach many entrepreneurs take is just to
improve access to products that already exist. This can be via an online shop, like
Amazon, selling and delivering a huge range of products around the world. Another
approach is by changing how we use a product. For instance, the industry of streaming
movies and TV shows has seen big increases in the last decade. Many previously
successful companies have now closed because of their decision to continue to sell the
old physical products that people were demanding much less. Knowing when and how
to adapt to the changing world is vital—when was the last time you rented a DVD
through the mail?
3. Another recent change is the increased demand for free products. Why has this proven
to be such a successful concept? Firstly, there is the obvious point that most people like
receiving something for free. However, giving everything away for free is clearly not a
good business model. The second main reason is that companies can give people a small
part of a product for free and then charge for more features. This is called a freemium
model. One issue start-ups find difficult is that very few people will have heard of their
product or service. By giving a certain amount away for free, you can get people
interested and willing to pay for more or further access. Lastly, companies don’t need
to spend as much on advertising because people are likely to tell their friends and family
about free products. If you give people free products or free access for sharing posts on
their social media, then you can reach a lot more people both quickly and cheaply.
4. Despite there being some examples of extremely successful start-ups in recent years,
the number of start-ups that fail remains high. So why do so many new businesses fail?
One reason might be that there isn’t a need for the company’s product. One priority any
new company should have is to solve a problem that exists. For example, online
shopping solved the problem that many people just do not have time to shop in stores.
Secondly, companies or products fail because it is the wrong product for the time.
Minidiscs, which were smaller versions of CDs, did not do well at first because of their
cost. Just as the cost became lower, MP3s became popular and people bought them
instead. Thirdly, there isn’t always space for the product in a crowded industry. When
a market is already nearly full it can be very difficult to get customers to notice you.
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People already have loyalty to a brand and unless you are very different or unique then
a business will find it difficult to be a success.
5. There are a number of other key reasons why a start-up business fails. Firstly, many new
businesses simply fail because they do not have enough money available. It can be
expensive to run a business, especially at first when you have to spend money on fees
to advertise your brand. Many small businesses simply run out of money before they
become successful. Secondly, and connected to this, building a good brand can take a
long time. It can also take a lot of money to build a reputation before a business becomes
successful. Airbnb, which found it difficult at first, managed to improve their brand and
reputation by using professional photography. Without the time or money to spend in
this way, the company might not be successful today. Companies that can survive more
than five years have a much higher chance of going on to become successful and
profitable businesses.
6. So what makes some start-ups so successful? Understanding what customers want,
timing your product correctly, promoting your company cheaply but well, and having
enough money to survive the first five years are important for a start-up to be successful.
A fantastic idea five years too early will probably fail. A company with a fantastic
product but a lack of money will probably fail. Many things need to fall into place at
the right time to put you on the path to success.
Task 1. Choose the best answers.
1. What is the main focus of the text?
A. The history of successful tech companies
B. The path and challenges to start-up success
C. How to build traditional industries
D. The benefits of streaming services
2. What has changed in recent years regarding start-up success?
A. It now takes longer to reach a billion dollars
B. Tech start-ups rarely succeed economically
C. Start-ups can reach billion-dollar status faster
D. Companies are no longer focusing on new products
3. Which of the following is NOT mentioned as a focus for companies to succeed?
A. Creating unnecessary products
B. Free content
C. Easy access
D. Time to be successful
4. What is one strategy for a successful start-up mentioned in the passage?
A. Inventing new physical products
B. Avoiding online selling
C. Focusing only on local markets
D. Improving access to existing products
5. Why did some older companies fail, according to the text?
A. They priced their products too high
B. They didn’t use enough advertisements
C. They didn’t adapt to changes in product use
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D. They partnered with online stores too late
6. What industry is given as an example of changing how we use a product?
A. Music downloading
B. Streaming movies and TV shows
C. Online retail
D. Mobile phones
7. What is a "freemium model"?
A. Giving all services for free forever
B. Charging for every product feature
C. Giving part of a product for free, charging for more features
D. Offering free trials that expire quickly
8. Why is giving away free content helpful for start-ups?
A. It guarantees immediate profit
B. It prevents competitors from growing
C. It reduces production costs
D. It helps people notice the product and promote it
9. What is one reason new businesses fail?
A. They offer too many free services
B. They lack market competition
C. There is no need for their product
D. They grow too fast
10. Why did minidiscs fail, according to the passage?
A. MP3s became cheaper and more popular
B. They were too large to carry
C. They were released too early
D. They had no storage capacity
11. What makes it difficult for products in a crowded industry to succeed?
A. Customers prefer physical stores
B. People are already loyal to other brands
C. Markets are empty and hard to enter
D. New products are too innovative
12. What is a major reason small businesses fail early on?
A. They lack enough funding
B. They have too many investors
C. They rely on customer reviews
D. They grow too quickly
13. What helped Airbnb become successful?
A. Giving away free accommodation
B. Reducing staff costs
C. Using professional photography to improve its brand
D. Expanding quickly across the world
14. According to the text, companies that survive over five years:
A. Always become billion-dollar businesses
B. Have a better chance at long-term success
C. Are likely to fail afterwards
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D. Must be international companies
15. What combination leads to a successful start-up?
A. Passion, independence, and luck
B. Creativity, fast decisions, and limited marketing
C. Inventing new products every year
D. Understanding customers, timing, promotion, and funding
Task 2. Read the text again and decide whether the following sentences are True (T), False
(F) or Not given (NG).
1. Successful start-ups always invent entirely new products.
2. Amazon is an example of improving access to existing products.
3. Companies that sell physical DVDs are still growing rapidly.
4. The freemium model has helped companies reduce customer service costs.
5. Giving free access to products can help with word-of-mouth marketing.
6. The text claims that all companies should spend heavily on advertising.
7. Minidiscs were more successful than MP3s.
8. Some products fail because they are introduced at the wrong time.
9. Airbnb succeeded only because of low prices.
10. Timing is just as important as having a great product for start-up success.
Part 2. WRITING (5 points)
Choose ONE of the following topics and write a paragraph of about 200-220 words:
1. “Young people today are not polite.” To what extend do you agree or disagree?
2. “Some people think that social media has had a negative effect on young people’s
behavior.” To what extend do you agree or disagree?
3. “Polite behavior is the same throughout the world.” To what extend do you agree or
disagree?
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