EXAM QUESTION PAPER

2ND SEM. JUNE 2012

AI/MK II
Teacher: Assist. Lecturer Veronica- Diana Armasu
E-mail: veronicaarmasu@yahoo.com (office 111)
STUDENT A

1. Listening Comprehension
2. Answer the two questions listed below by focusing on the specific requirement. Make sure
you provide appropriate explanations, arguments and examples if possible. (WORD LIMIT
100 WORDS/ITEM).
A. What sources of financing a new business could a self-starter resort to if in need of
start up money?
B. Is there an accounting scandal of an international magnitude that you have read
about/heard of? What happened and what impact did the accounting failure have?
3. A. English in Use
COMPLETE EACH SENTENCE WITH THE CORRECT OPTION (A, B OR C):
1 Private banks manage the assets of rich people or __ net worth individuals.
a) large b) high c) extreme
2 Due to large losses, shareholders will not receive a ________ this year.
a) dividend b)bonus c) revenue
3 The price of the shares was ________ by the lack of their availability.
a) inflated b) generated c) enhanced
4 Cheque volumes reached a. ________ in 1998 but usage has fallen since then, mainly owing to
increased use of credit cards.
a) peak b) victory c) total
5 Darren has taken ________ a life insurance policy with the Prudential.
a) up b) out c) against
6Do you know how much of the budget has been ________ to recruitment.
a) ensured b) allocated c) prescribed
7 The major ________ reduced the companys market capitalization by 70 per cent.
a) selling b) sale c) sell-off
8 We dont own the Paris office. We ________it from a larger company.
a) hire b) borrow c) lease
9 They had to sell off some ________ in order to reduce their level of debt.
a) headquarters b) assets c) capital
10 Borrowing money from________ implies both risks and other potential dangers.
a) venture capitalists b) loan sharks c) banks
11 Corporate ________is the way a company is organized and managed at the highest level.
a) management b) supervision c) governance
12 Regulators are demanding more __________; they say audits should ensure that the
companys accounts give a clear picture of its financial situation.
a) truth b) transparency c) morality
13 When you deduct a companys liabilities from its assets, you are left with __________ equity.
a) shareholders b) stakeholders c) proprietors
14 One can look at profitability in terms of earnings per __________.

a) stock b) turnover c) share

15 I took out a __________ to extend the factory.
a) credit b)deposit c) warranty
3B Put one word in each space:
Read the text about uninsurable risks. Think of the word that best fits each space. Se only one
word in each blank. There is an example at the beginning (0).
Uninsurable risks
A person can _0_ only obtain insurance cover for possible loss if he or she has an insurable
interest in whatever or whoever is __1__ insured. However, even when such interest exists, there
are __2__ many risks for which insurance companies will not give cover. __3__ are called
uninsurable risks, and examples are:
(i)
Business losses arising __4__ difficult trading conditions or bad management. There are
so many uncertainties in business __5__ insurance companies consider past experience of losses
to be __6__ clear guidance to the future. As a result, they cannot accurately calculate the
premiums to be charged. __7__ point is that business people might not __8__ too much trouble to
avoid a loss of profit if they knew they __9__ going to be compensated for it.
(ii)
Injury or death __10__ by exposure to nuclear radiation. Insurance companies consider
that they __11__ not have sufficient experience of possible losses to be able to calculate how
much experience __12__ become liable for in these cases. If you look __13__ the policy covering
your own house or contents, you will find this __14__ one of the exceptions.
(iii)
Activities __15__ the risk of loss or injury is very high. An example would be a young
inexperienced driver __16__ a high accident record who wanted to obtain insurance cover for a
fast sports car. The premium __17__ be too high to pay, because the chances of an insurance
company having to pay __18__ are too great.
An uninsurable risk is a risk for which the chance and level of possible loss __19__ be calculated,
or for which the insurance company is almost certain to __20__ to pay compensation.
(adapted from R. Barrett and M. Gow, Commerce Skills)