REVISION 2

I. Choose one word from the box for each blank.

stake optimal suits losses differences risk
diluting defaults exposing interest secured fixes

Sources of finance
What do you need to consider when choosing the source of new business finance?
A key consideration is to strike a balance between equity and debt to ensure the funding structure (1)
………. the business.

The main (2) ………. between borrowed money (debt) and equity are that, with debt, bankers request
(3) ………. payments and capital repayments, and the borrowed money is usually (4) ………. on
business assets or the personal assets of shareholders and/or directors. A bank also has the power to
place a business into administration or bankruptcy if it (5) ………. on debt interest or repayments or its
prospects decline.

In contrast, equity investors take the (6) ………. of failure like other shareholders, whilst they will
benefit through participation in increasing levels of profits and on the eventual sale of their equity (7)
………..

The overall objective in raising finance for a company is to avoid (8) ………. the business to excessively
high borrowings, but without unnecessarily (9) ………. the share capital. This will ensure that the
financial risk of the company is kept at a(n) (10) ………. level.

II. Choose the best answers

11. What is the primary goal of production scheduling?
A. Increase product variety
B. Ensure timely delivery of products
C. Reduce employee turnover
D. Enhance marketing strategies
12. Batch production is best suited for which type of manufacturing?
A. Customized products
B. Single-use production
C. Large-scale, continuous production
D. Medium to large quantities with variations in product types
13. Lead time refers to:
A. The time required for product testing
B. The period between order placement and product delivery
C. The lifespan of a product
D. The time spent in research and development
14. A strategic vision for a company is important because it:
A. Focuses on long-term goals and growth direction
B. Guides daily operations
C. Deals with immediate customer service issues
D. Helps employees understand performance metrics
15. Linear workflow in production is characterized by:
A. Multiple tasks being performed simultaneously
B. Parallel processing of different tasks
C. Randomized task assignments
D. Work progressing in a straight line from one step to the next
16. The Just-in-Time (JIT) manufacturing strategy primarily focuses on:
A. Reducing lead time
B. Producing products in anticipation of future demand
C. Minimizing waste by producing only when there is demand
D. Maximizing inventory levels for emergency situations
17. A balance sheet provides a snapshot of:
A. A company's financial performance over a period of time
B. A company's assets, liabilities, and equity at a specific point in time
C. Cash inflows and outflows for a business
D. The production costs for a single project
18. A cash flow statement is useful for understanding:
A. The changes in a company’s cash position over a period of time
B. The profitability of a business
C. The total assets and liabilities of a company
D. The company’s strategic vision
19. A production bottleneck occurs when:
A. Production speeds up in one area
B. There are too many workers in one area
C. Finished goods exceed the storage capacity
D. A particular step in the production process slows down the entire workflow
20. Production yield refers to:
A. The time taken to complete a production cycle
B. The amount of finished products produced from raw materials
C. The percentage of defective products in a batch
D. The total number of products manufactured
21What does a "level playing field" mean in business?
A. An environment where all companies have equal market share
B. A situation where competition is fair and everyone has the same opportunities
C. A market dominated by a few large firms
D. A marketplace with no government intervention
22. Why do people typically take out a mortgage loan?
A. To finance a house or real estate property
B. To purchase a vehicle
C. To start a new business
D. To buy stocks and bonds
23. What is a hedge fund known for?
A. Providing long-term fixed returns to investors
B. Focusing on socially responsible investing
C. Funding government projects
D. Using high-risk strategies to achieve high returns
24. Why is consumer spending an important economic indicator?
A. It reflects the amount of money businesses invest
B. It shows the level of government spending on public services
C. It indicates the total demand for goods and services in an economy
D. It measures the total income of households
25. What are industrial emissions?
A. The waste products released into the atmosphere by manufacturing plants
B. The amount of products a company manufactures annually
C. The total workforce employed by factories
D. The profits generated by industrial sectors
26. How are carbon credits used in environmental regulations?
A. To pay for renewable energy projects
B. To reward companies for producing sustainable products
C. To increase the efficiency of industrial production
D. To allow companies to legally emit a certain amount of carbon dioxide
27. What is the role of pressure groups?
A. Raising capital for businesses
B. Influencing the government and ordinary people's opinions
C. Creating new business ventures
D. Controlling interest rates in the financial market
28. What does restructuring in a business usually involve?
A. Expanding the product line
B. Relocating the company to another country
C. Redesigning the company’s organizational or financial structure
D. Increasing the number of employees in a department
29. What is deregulation?
A. Removing or reducing government rules and regulations in a sector
B. Increasing government control over industries
C. Imposing stricter environmental standards on businesses
D. Strengthening labor unions in a company
30. What is an acquisition in the business context?
A. A company increasing its workforce
B. A company taking over another company by purchasing a controlling interest
C. A company launching a new product
D. A company signing a merger agreement with another business
31. In ……………, products are often tailored to specific customer requirements or specifications,
allowing for greater flexibility and personalization.
A.batch production
B.mass production
C.unit production
D.process production
32. Managing the conversion process from inputs such as natural resources, raw materials, human
resources, and capital to outputs, products and services is the role of ……………
A.performance management
B.brand management
C.line management
D.operarions management
33. Since job shops are set up for small-scale production, they can often reduce …………… for unique
or custom orders compared to mass production facilities.
A.production costs
B.lead times
C.industrial wastes
D.labor force
34. A .................. involves a straightforward, step-by-step process where each task must be completed
before moving on to the next one.
A.strategic vision
B.performance measurement
C.linear workflow
D.workflow process
35. Objectives management involves .................., making operational decisions based on business goals
and aligning operations to support overall company objectives.
A.optimizing costs
B.perfoming tasks
C.running daily operations
D.setting priorities
36. Six Sigma is a quality improvement operations management system focused on identifying product
................. and addressing them.
A.promotions
B.returns
C.deficiences
D.varieties
37. .................. is a specialized field of accounting that involves investigating financial records to detect
and prevent fraud, embezzlement, or other financial crimes.
A.Creative accounting
B.Forensic accounting
C.Auditing
D.Bookkeeping
38. ……………. involves calculating how much an individual or a company will have to pay to the local
and national governments and trying to reduce this to a minimum.
A.Tax accounting
B.Cost accounting
C.Managerial accounting
D.Equity accounting
39. ............... is a type of intangible asset that is associated with the purchase of one company, including
reputation, loyal customers, solid customer service, good employee relations, etc.
A.Pattern
B.Trademark
C.Goodwill
D.Equity
40. A(n) ............... is a payment made by a corporation to its shareholders, typically as a distribution of
profits.
A.dividend
B.interest
C.principal
D.debt
41. A .................. allows homeowners to finance the purchase of a property by borrowing money from
a lender, with the property itself serving as collateral.
A.short-term loan
B.bad loan
C.long-term loan
D.mortgage loan
42. …………… is money that a company borrows from banks, investors, etc. which is calculated as part
of the company’s total capital.
A.Debt capital
B.Equity capital
C.Fixed capital
D.Human capital
43. Members of the British Parliament who do not have official positions in the government or in an
opposing political party are ……………
A.statemen
B.politicians
C.backbenchers
D.protagonists
44. The Federal Government has responded to industry pressure and ................ (i.e. got rid of) the budget
plan to impose a tax increase on backpacker workers.
A.offset
B.dumped
C.implemented
D.pinpointed
45. New legislation was .............. to address environmental concerns, aiming to reduce carbon emissions
and promote sustainable practices across industries.
A.carried
B.enacted
C.spelt out
D.let on
46. The company's recent decision to ................ on its returns policy has generated mixed reactions from
customers alike. According to the new policy, to be elegible for returns, customers must report problems
to their orders within 3 days instead of a month as stipulated earlier.
A.compromise
B.recoup
C.impose
D.backflip
47. Due to budget constraints, we had to ……………. our travel accommodations from a luxury hotel
to a budget-friendly hostel for the upcoming business trip to meet cost-saving targets.
A.relaunch
B.reassess
C.downsize
D.downgrade
48. Critics argued that plans to ............... control on environmental protections could lead to increased
pollution and harm to ecosystems.
A.deregulate
B.decentralize
C.deactivate
D.deduct
49. The company's investment in advanced technology, such as artificial intelligence, gave them a
significant .............. in the marketplace by allowing them to offer faster and more accurate services
compared to their competitors.
A.exclusive agency
B.rising margin
C.competitive edge
D.acquisition opportunity
50. The startup identified a(n) ............... market in rural areas, where there was a growing demand for
eco-friendly products, but competition was still minimal due to limited distribution channels and
awareness.
A.mass
B.untapped
C.niche
D.free

III. Reading
KEEPING YOUR BALANCE WITH CUSTOMERS
Adapted from Robert S. Kaplan and David P. Norton (https://hbswk.hbs.edu/item/keeping-your-
balance-with-customers)
From product push to customer pull, technology has vastly reshaped the business transaction—and in
turn, the customer's place in the value chain. Today, managing the customer relationship has become the
single most important dimension of enterprise strategy. Here, Kaplan and Norton analyze the four-
component processes of the Customer Management theme—customer selection, acquisition, retention,
and growth—demonstrating their importance in maximizing customer value and, ultimately, in value
creation itself.
Customer management (CM) reflects much of what is new in modern business strategy. In the Industrial
Era, product innovation and operations management predominated. Product innovation ensured the
continuous flow of new products that would sustain growth or market share or both. Operations
management ensured that costs and quality were managed so that competition could be based on price
and profits could be derived from scale. Customer management was relegated to selling and promoting
the company's products. The customer relationship was seldom the issue.
The New Economy has changed all of this. With the evolution of computer and communications
technologies, particularly the Internet and database software, the customer can now initiate the business
transaction, not simply respond to the salesperson's overture. Instead of being on the end of the value
chain ("product push"), the customer is now at the beginning ("customer pull"). Organizations must
therefore establish a "relationship" that allows them to maintain contact with their customers over the
long term. Recognizing this new reality and dealing with it proactively is the single most important
dimension of enterprise strategy. It's within the Customer Management theme that this is accomplished.
The Customer Management theme is made up of four processes—customer selection, customer
acquisition, customer retention, and customer growth—all of which, when strategically integrated,
maximize the value of the customer, and therefore of value creation in general. Yet, when formulating
any CM strategy, organizations must consider each process individually. Each requires a proactive
approach.
Read the text and choose the best answer for each question.
1. What has become the most important dimension of enterprise strategy in the New Economy?
A. Product innovation
B. Customer relationship management
C. Operations management
D. Price competition
2. How has the role of the customer changed in the value chain due to new technologies?
A. Customers respond to the salesperson’s overtures
B. Customers are now at the end of the value chain
C. Customers initiate the business transaction
D. Customers are solely responsible for product quality
3. Which of the following processes is NOT part of the Customer Management theme?
A. Customer selection
B. Customer retention
C. Customer communication
D. Customer growth
4. What did customer management primarily involve during the Industrial Era?
A. Managing customer relationships over the long term
B. Selling and promoting the company’s products
C. Focusing on customer acquisition and retention
D. Maximizing customer value creation

Decide if each of the following statements is True (T), False (F), or Not Given (NG).
5. In the Industrial Era, customer management was primarily focused on long-term customer
relationships.
6. The Internet and database software have allowed customers to take a more active role in initiating
business transactions.
7. Customer growth is the most important process in the Customer Management theme.
8. Kaplan and Norton argue that companies should prioritize customer feedback over product
innovation.

Find an appropriate word from the text to complete the following sentences.
9. Customer management was primarily focused on ………… and marketing the company’s products,
with little attention given to the customer relationship.
10. As a result, organizations need to build a ……………….. that enables them to stay connected with
their customers over an extended period.

IV. Listening
Part 1. Listen to the recording and choose the correct answer.
1.Why did he choose Business Angels?
A. They have a good reputation.
B. They offer their experience as well as cash.
C. They had helped him in the past.
D. They want only a small return for their investment.

2.What did the funding selection process involve?

A. keeping the business running
B. asking relevant questions
C. researching the competition
D. producing a business plan

3.The result of the process was an offer of

A. more than he had expected to receive.
B. nothing as he had hoped to get
C. enough to fund an advertising campaign.
D. not sufficient to achieve his original goals.

4.After receiving the funding, John Hamilton

A. opened new retail outlets.
B. expanded into a new market
C. developed his product range.
D. investigated a publicity drive.

5.What has made private investors consider funding small businesses?

A. It is part of their investment portfolio.
B. The rewards are likely to be high.
C. They can exert influence over the business.
D. There is uncertainty in the financial market.

Part 2. Listen to the recording and complete the summary below. Write ONE WORD ONLY for
each answer.
5 capital raising strategies for a startup
1. Business loans
+ Loan (1) …………… is not guaranteed.
+ meeting specific (2) ……………
- having an excellent credit score
- being in business for a certain period of time.

2. Angel investments
+ (3) ……………, accredited individuals
+ requiring a solid business (4) …………… and pitch ready
3. Personal contacts
+ raising money through their friends and family members
+ (5) …………… family and business => more stress to the capital raising (6) …………….

4. Venture capitalists
+ invest in more (7) …………… companies
+ operate out of a firm, rather than working alone.
+ lower (8) …………… of businesses - but more money.

5. Private equity
+ raise funds from investors
+ use this capital to (9) …………… stakes in companies.
The goal
+ to improve the value of these companies over time
+ eventually selling the investment at a (10) …………….

LISTENING 2
Part 1: Listen to the recording and choose the correct answer.
1. What is the primary purpose of accounting in business?
A. To hire employees
B. To record, analyze, and interpret financial information
C. To market products
D. To manage customer relationships
2. Which financial statement shows a company’s financial position at a specific point in time?
A. Note statement
B. Equity statement
C. Balance sheet
D. Profit statement
3. How does accounting help in business decision-making?
A. By tracking customer preferences
B. By determining market trends
C. By managing employee performance
D. By analyzing financial data
4. Which of the following is a key role of accounting in ensuring compliance?
A. Filing accurate financial reports for tax authorities
B. Creating new products
C. Recording customer satisfaction
D. Managing social media accounts
5. What is the benefit of adhering to standardized accounting principles like GAAP or IFRS?
A. Better employee retention
B. Improved customer service
C. Consistency and comparability in financial reporting
D. Faster production processes

Part 2: Listen to the recording and complete the summary below. Write ONE WORD ONLY for
each answer.
Businesses in Vietnam are influenced by various external factors, including economic conditions,
government, global market (1)…………, and environmental issues. The country’s strong economic (2)
…………… and rising middle class offer opportunities, but challenges such as (3) …………….. and
currency fluctuations require careful cost management. Government policies aimed at attracting
foreign investment can create (5)………………. but bureaucratic hurdles and inconsistent regulation
enforcement pose obstacles.
(6) ……………… trade agreements like the CPTPP provide access to new markets but also increase
competition from foreign firms, pushing local businesses to innovate. Additionally, (7) …………….
challenges, including climate change and natural disasters, particularly impact (8) …………… and
manufacturing sectors, necessitating sustainable practices and disaster management strategies.
In summary, adaptability and proactive strategies are essential for Vietnamese (9) …………….. to
navigate the influences of economic, regulatory, global, and environmental (10) …………..
effectively.