C: Completion

Date: 2015-10-07; view: 535.

This exercise is designed to increase vocabulary and reading compre­hension. Select the answer which best completes the meaning of the sentence.

1. Advertising is a kind of public announcement which describes the benefits of using a product or service. We can use advertising to increase the sales of our product or service. We expect to find advertising

a. at school. b. in the factory. c. on the land. d. on TV and radio.

2. There is an expression, "It takes money to make money." We know that capital can be used to make something of value. Therefore, capital can refer to

a. a basic factor. b. money. c. raw materials. d. bankruptcy.

3. A creditor is a person to whom the business owes money. Which of the following is most likely to be a creditor?

a. an entrepreneur b. an employee. c. a banker. d. a factor.

4. Labor changes raw materials into finished goods. Paper is an exam­ple of a finished good. The raw material would be

a. physical work. b. wood. с finished products. d. land.

5. Distribution means getting the products from the factory to the store where customers buy them. Which of the following companies would probably be involved in distribution?

a. a bank. b. a transportation c. a supermarket. d. a factory, company.

6. An employee is a person who works for a company and receives payment for his work. Which factor does the employee supply?

a. land. b. labor. с capital. d. innovation.

7. Large companies require more capital than a single entrepreneur could supply. The ownership of the company is therefore divided into shares of stock. In order to raise capital, a company might

a. risk its future. b. bring together с sell stock. d. produce goods, land and labor.

8. Value is the quality that makes a thing wanted or worth having. Value is probably

a. skill. b. capital. с price. d. profit.

9. Businesses provide both goods and services. Examples of goods are physical products which customers purchase to take home. An example of a service business would be

a. an oil company b. a store. с a bank. d. a factory.

10. The owner of a business takes a risk. He hopes that his business will be successful and that he will make a profit, but there is a chance that he may

a. manage and direct activities b. offer new services and products с make a profit d. suffer a loss