Choose the best answer to each of the following questions.

1 How does the bank manager assess Maria’s business plan?

a) inadequate

b) satisfactory

c) very strong

2 Maria wants to start up her business …

a) within the next year.

b) within a few months.

c) as soon as possible.

3 Apart from a bank loan, what other financial support does Maria plan to get?

a) venture capital from investors

b) a loan from her father

c) no other support

4 Maria wants to increase the total amount of the loan …

a) by

30,000.

b) to 50,000.

c) by

80,000.

5 Maria tries to negotiate …

a) the requirement for collateral.

b) the interest rate.

c) the repayment term.

6 The bank’s final offer includes:

a) a loan of 80,000.

b) an interest rate of 6 per cent on a five-year repayment plan.

c) 6.5 per cent interest on a loan of 50,000.

7 The result of the negotiation is:

a) an agreement.

b) a breakdown in the discussions.

c) a delay in making a decision.

Now listen to the conversation again. Which of the following does the bank

manager do during the negotiation? Your trainer will stop the tape at

intervals to give you time to mark your answers.

8 ask a closed question

9 ask for details

10 clarify the situation

11 soften the bad news

12 make an unconditional offer

13 make a conditional offer

14 ask an open question

15 summarise what was agreed

B

A

22

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Name/Class:

Progress Test 3

(Units 9–12)

Grammar

Listening

Vocabulary

Use of English

Reading

Functions

Reading

Writing

Speaking

Progress Test 3

(Units 8–11)

Finance terms

Choose the word that best fits each of the definitions.

16 Money paid by a government or organisation to make something cheaper

to produce or to buy:

a) gift.

b) stake.

c) subsidiary.

d) subsidy.

17

Money lent to someone so that they can start a new business:

a) start-up.

b) human capital.

c) venture capital.

d) working capital.

18 Capital that a company has from shares rather than loans:

a) equity.

b) assets.

c) collateral.

d) debt.

19 An amount of money owed by a business to a supplier or lender:

a) loss.

b) liability.

c) credit.

d) loan.

20 Money risked or invested in a business:

a) security.

b) collateral.

c) damages.

d) stake.

21 An arrangement between a bank and a customer, allowing them to take

out more money from their account than they currently have in it:

a) overdue.

b) overdraft.

c) overhead.

d) overpayment.

22 A written promise that a company gives to a customer stating that it will

repair or replace any product purchased if it breaks within a certain time:

a) warranty.

b) undertaking.

c) credit note.

d) advice note.

23 An amount of money paid for goods or services:

a) salary.

b) wage.

c) charge.

d) pay.

A

Language

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Name/Class:

Opposites

Complete the letter below with the opposite of each of the words in brackets.

AIRBANKS HOTEL
SEAFRONT ROAD
PORTSMOUTH
PO1 4BY

Dear Sir or Madam

We are writing to express our [satisfaction] ...................................

24

at the

poor quality of your service which we experienced during our stay last
weekend. We found the staff of your hotel very [helpful]
...................................

25

and [sensitive] ...................................

26

to customer

needs.

In the restaurant, the portions of food were [adequate]
...................................

27

and poorly cooked. Furthermore, the waiter showed

astonishing [competence] ...................................

28

by dropping a bowl of

soup in my wife’s lap. When we complained to the restaurant manager about
his disgraceful [management]...................................

29

, he was most

[polite] ...................................

30

.

He told us that if we were [happy] ...................................

31

with the hotel

restaurant, we could always go and eat somewhere else. We think your staff
should be better trained in customer service …

Replace each of the underlined words with a single word from the box that

has the same meaning.

extrovert

quiet

arrogant

aggressive

hard-working

popular

moody

laid-back

unpredictable

dynamic

talented

ambitious

reliable

Tanya is someone you can always depend on . . . . . . . . . . . . . . . . . . . . . . . . . .

32

. She is

not very talkative . . . . . . . . . . . . . . . . . . . . . . . . . .

33

, but she is conscientious and works

long hours . . . . . . . . . . . . . . . . . . . . . . . . . .

34

.

Jim, on the other hand, is rather relaxed about things . . . . . . . . . . . . . . . . . . . . . . . . . .

35

.

He is outgoing among people . . . . . . . . . . . . . . . . . . . . . . . . . .

36

and everybody likes

him . . . . . . . . . . . . . . . . . . . . . . . . . .

37

.

Sam is gifted with many skills . . . . . . . . . . . . . . . . . . . . . . . . . .

38

and keen to get on in

her career . . . . . . . . . . . . . . . . . . . . . . . . . .

39

. She is very lively, but her moods are rather

changeable . . . . . . . . . . . . . . . . . . . . . . . . . .

40

.

C

B

24

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Name/Class:

Noun phrases

Make up a noun phrase of two words, taking one from each box, and

complete each of the sentences below. Add ‘of’ to the noun phrase where

necessary.

admission

contingency

damage

legal

loss

speed

action

confidence

liability

limitation

plan

response

41 We have made all the arrangements for tomorrow’s event, but we should

have a . . . . . . . . . . . . . . . . . . . . . . . . . . in case things go wrong.

42 The problems with deliveries increased over the following three months,

resulting in a . . . . . . . . . . . . . . . . . . . . . . . . . . in the supply network.

43 The qualities we value most in our suppliers are: reliability, consistency of

product, and . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prepositions

Write the correct preposition into each of the gaps in the text below.

The emphasis . . . . . . . . . . . . . . . . . . . . . . . . . .

44

brands is essential

. . . . . . . . . . . . . . . . . . . . . . . . . .

45

the company’s new strategy. The aim is to cut

manufacturing costs by basing several different models . . . . . . . . . . . . . . . . . . . . . . . . . .

46

common engineering and parts. The strategy is dependent

. . . . . . . . . . . . . . . . . . . . . . . . . .

47

distinctive styling and clever marketing to prevent

customers switching . . . . . . . . . . . . . . . . . . . . . . . . . .

48

cheaper models. The company

has invested millions of dollars . . . . . . . . . . . . . . . . . . . . . . . . . .

49

developing brand

loyalties, and is now starting to profit . . . . . . . . . . . . . . . . . . . . . . . . . .

50

its selling

success.

Correcting mistakes

In each line of the text one word is wrong. Write the correct word on the line

provided.

F

E

D

25

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It is impossible to overemphasise the importance of our individual contribute to the

company’s profitability. By identify the components of profitability, each of us can target

our daily actions more specifically. We can help improving profitability by continuously

questioning our established work practices and procedures. Examine our daily routines

and work patterns will focus our minds on the key factor that influences profitability: cut costs.

51 . . . . . . . . . . . . . .

52 . . . . . . . . . . . . . .

53 . . . . . . . . . . . . . .

54 . . . . . . . . . . . . . .

55 . . . . . . . . . . . . . .

Name/Class:

Similarity and difference

Complete the sentences by combining phrases from each of the two boxes

below. Refer to the table of figures for the information.

France

Germany

Britain

% seats held by women in

parliament

13

18

13

% change in population in the

next 50 years

+1

–11

–4

litres of alcohol consumed per

person per year

11

11

7.5

56 Women hold 13 per cent of seats in parliament in . . . . . . . . . . . . . . . . . . . . . . . . . . .

57 . . . . . . . . . . . . . . . . . . . . . . . . . . has an increasing population.

58 France’s population is increasing slightly, . . . . . . . . . . . . . . . . . . . . . . . . . . , where it

is decreasing.

59 In Britain, the population will decrease by 4 per cent

. . . . . . . . . . . . . . . . . . . . . . . . . . .

60 The Germans drink . . . . . . . . . . . . . . . . . . . . . . . . . . .

61 The British drink . . . . . . . . . . . . . . . . . . . . . . . . . . .

in contrast to

both

just as much as

neither

less than either

whereas

France and Britain

in Germany the figure is 11 per cent

the French

Germany nor Britain

Britain and Germany

the Germans or the French

Modal perfect

Write the most appropriate modal verb in each gap.

62 You . . . . . . . . . . . . . . . . . . . . . . . . . . have gone to the presentation on marketing in

the 21st century. It was excellent!

63 She . . . . . . . . . . . . . . . . . . . . . . . . . . have gone home already – it’s only 3 p.m.

64 It was foolish to risk so much money on the new dotcom company:

we . . . . . . . . . . . . . . . . . . . . . . . . . . have lost everything.

65 There were only two people who could have left this message. It wasn’t

John, so it . . . . . . . . . . . . . . . . . . . . . . . . . . have been Manuel.

66 You . . . . . . . . . . . . . . . . . . . . . . . . . . have made all those photocopies. I’d already

printed out copies for everyone.

67 I . . . . . . . . . . . . . . . . . . . . . . . . . . have taken the airport bus, but the last one had

left so I got a taxi.

H

G

26

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Name/Class:

Read the article and answer the questions that follow.

Match each of the sections, numbered I to VI, with the most appropriate

heading from the box.

a) Setting international standards

b) Two years to make it pay

c) From engineer to entrepreneur

d) The problems of buying skins in Russia

e) The leather industry today

f ) Future trends in the leather market

g) A new way to trade leather

h) Market responses to online leather trading

A

27

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Grammar

Use of English

Reading

Functions

Reading

Writing

Speaking

I

José Suarez, a Cuban-born industrial engineer,

found himself trading skins and hides almost by

accident. He had gone to Russia in the early

1990s, hoping to make a quick fortune with

electronic goods. But because he could not

convert his roubles into dollars, he needed a

commodity he could easily sell abroad. Someone

suggested leather. The international markets for

raw materials were booming, and his business

took off.

II

With leatherXchange.com, Mr Suarez’s new

venture, he hopes to persuade the 170,000

participants in the $110bn global leather

industry that they are better off doing their

business over the Internet. ‘What we aim to do is

help companies cut costs by replicating online

what they now do offline,’ he says. The

leatherXchange picked up 550 members in 40

countries in its first full year of operation, and is

now adding 15 new members a week. Users pay

an annual membership fee plus fees based on

their online transactions and the use of the

leatherXchange’s search engines, which earned

revenues of $4m last year.

III

It is a huge challenge. The industry is

fragmented and ranges from the slaughter-

houses and tanneries of the third world to the

manufacturers of luxury leather goods in Italy

and France. There are thousands of agents and

traders; the biggest company has less that one

per cent of the market.

IV

To begin with there were no internationally

accepted standards to grade and classify the

quality of skins and hides. Purchasers for big

tanneries live on aeroplanes because the only

way they can ensure that hides are of a desired

quality is to inspect the merchandise

themselves. Even so, 30 to 40 per cent of

international consignments are typically turned

back by dissatisfied buyers. To cut down on

claims, Mr Suarez has written standards on how

to treat hides, and how skins should be graded

and classified. The grading standards and

product definitions are now posted on the

website, as are industry contracts to govern

agreements between buyers and sellers.

V

It is also the fragmented nature of the

industry that could make an online leather

marketplace a success. Ironically, it is in

countries such as Brazil and India, with high

transport and telecommunications costs, where

the idea has really taken off. In Europe, the

leather industry still prefers to deal with their

suppliers personally, or over the phone.

VI

In the tough new environment for B2B

ventures, every new service will have to earn its

own way within two years, Mr Suarez says. The

leatherXchange closed its first round of

financing in October last year, receiving 11.5m

from a group of financial backers. Mr Suarez

hopes to raise an additional 5m soon. That, he

says, should be enough to keep his venture

afloat for the next two years, when it aims to

break even.

CUBAN CREATES ONLINE

WORLD OF LEATHER

Name/Class:

From the Financial Times

68

I . . . . . . . . . . . . . . . . . . . . . . . . . .

69

II . . . . . . . . . . . . . . . . . . . . . . . . . .

70 III . . . . . . . . . . . . . . . . . . . . . . . . . .

71

IV . . . . . . . . . . . . . . . . . . . . . . . . . .

72

V . . . . . . . . . . . . . . . . . . . . . . . . . .

73 VI . . . . . . . . . . . . . . . . . . . . . . . . . .

Choose the best answer to complete each sentence.

74 José Suarez started trading in leather because …

a) it was a commodity that could be exported from Russia.

b) it was a trade he was already familiar with.

c) it would be easy to trade over the Internet.

75 His business in leather was …

a) initially a failure.

b) slow to make profit.

c) an immediate success.

76 The aim of leatherXchange is …

a) to change leather trading practices fundamentally.

b) to help traders to reduce their expenditure.

c) to help the market to recover from a crisis.

77 The leather industry …

a) is in the hands of a few big companies.

b) has many small companies involved in it.

c) is dominated by Russian companies.

78 The main problem for purchasers of hides is …

a) to be sure of good quality.

b) to arrange transportation.

c) to find suppliers.

79 The online leather marketplace is most widely used in …

a) Western Europe.

b) Countries where Internet use is highest.

c) Countries with high telecommunications costs.

80 Financing Mr Suarez’s new venture …

a) has been easy.

b) requires a quick return for the backers.

c) has resulted in long-term debt.

Write a letter from the Fairbanks Hotel in response to the letter of complaint in

language exercise B of this test. Include the following points in your letter:

• a general apology

• your assurances that you will take action to make sure it never happens again

• offer a voucher for two complimentary (i.e. free) meals in the restaurant, valid for

12 months

• express hope that the customers will return to your hotel soon

You should write about 100 words.

B

28

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Name/Class:

Grammar

Listening

Vocabulary

Use of English

Reading

Functions

Reading

Writing

Speaking