Bizz-Educators - IELTS Listening Answers & Explanations
From Succeed in IELTS Academic Listening Test 7 · Part 3 · Questions 21–30
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Questions
Questions 21–27 Table Completion
Complete the table below.
Write NO MORE THAN THREE WORDS AND/OR A NUMBER for each answer.
| Bizz-Educators Inc. | |
|---|---|
| Upsides | Downsides |
| has a proven track record | wants to remain an independent entity, so this would be a hostile 21 |
| is an industry 22 | is a production-based company |
| is well-respected and has a great name | is a 23 venture |
| has generated a lot of goodwill | is in a different market so there will be no synergy, and no cost savings |
| consistently has an annual gross profit of 24 | |
| has a clear and ambitious 25 | |
| has very high 26 for 2012 and 2013 | |
The official decision on whether to buy Bizz-Educators will be taken at tomorrow's 27
Questions 28–30 Three Choices
Choose THREE letters, A - G.
What THREE requirements are there for the takeover of Bizz-Educators to go ahead?
Answers & Explanations Summary
| # | Answer | Evidence | Explanation |
|---|---|---|---|
| Q21 | leader | Bizz-Educators has a proven track record and is an industry leader | Excerpt/Transcript Explanation: The transcript states that Bizz-Educators is successful and holds a leading position in its industry. Answer Explanation: The answer means a top company that is one of the most successful and important in its field of business. Reason For Correctness: The correct answer is "leader" because the table asks for a positive point ("upside") about the company completing the phrase "is an industry...". In the transcript, Dave lists the advantages of buying Bizz-Educators and explicitly states that the company "has a proven track record and is an industry leader." |
| Q22 | £500 000 / £500,000 | has consistently made a gross profit of more than £500,000 per annum with a great shareholder return | Excerpt/Transcript Explanation: The transcript explains that Bizz-Educators regularly earns a gross profit of over £500,000 each year. Answer Explanation: The answer means an amount of money equal to five hundred thousand British pounds. Reason For Correctness: The correct answer is supported by Dave's statement listing the advantages of buying Bizz-Educators. He mentions that the company makes a gross profit of more than £500,000 every year ("per annum"). Therefore, when filling in the note about the company having an annual gross profit, "£500,000" (or "more than £500,000") is the correct figure. |
| Q23 | strategy | It shows that the company has a clear and ambitious strategy going forward | Excerpt/Transcript Explanation: The transcript explains that the company's actions prove it has a well-defined and bold plan for its future growth. Answer Explanation: The answer "strategy" means a clear plan of action designed to achieve a goal. Reason For Correctness: The correct answer is "strategy" because Dave mentions this as one of the positive aspects (upsides) of Bizz-Educators Inc. He explains that investing in a new plant is a good thing because "it shows that the company has a clear and ambitious strategy going forward." The phrase in the table "has a clear and ambitious [input]" directly matches this statement. |
| Q24 | projected profits | That loss will be clawed back within two years if the projected profits for 2012 and 2013 materialise | Excerpt/Transcript Explanation: The transcript states that the company will get its lost money back within two years if the expected earnings (projected profits) planned for 2012 and 2013 actually occur. Answer Explanation: The answer "projected profits" refers to the estimated or predicted money the company expects to earn in the future. Reason For Correctness: The correct answer is "projected profits" because Dave mentions this exact term when talking about the company's financial forecast for 2012 and 2013. He explains that any small loss will be recovered if the "projected profits for 2012 and 2013" become a reality, which directly corresponds to the phrase "has very high [input] for 2012 and 2013" in the table. |
| Q25 | takeover bid / takeover | First of all, this company wants to remain an independent entity. Hostile takeover bids are fraught with danger | Excerpt/Transcript Explanation: The transcript explains that the company wants to stay on its own as an independent entity, meaning trying to buy it would be a hostile takeover bid. Answer Explanation: The answer means an attempt to buy or gain control of a company when that company does not want to be bought. Reason For Correctness: The correct answer is supported by Mark's explanation in the transcript. He mentions that Bizz-Educators wants to stay independent, which makes an attempt to buy it a hostile "takeover bid" (or simply "takeover"). Therefore, completing the sentence "this would be a hostile..." requires the term "takeover (bid)". |
| Q26 | high-risk | Look, I'm not saying it can't be done; I'm just saying this is a high-risk venture | Excerpt/Transcript Explanation: The transcript shows Mark stating that taking over this company is a business project that carries a great deal of risk. Answer Explanation: The answer "high-risk" means having a big chance of failing or losing money. Reason For Correctness: The correct answer is "high-risk" because the task asks to complete a downside of buying Bizz-Educators Inc. describing what kind of venture it is. In the discussion about the disadvantages, Mark points out that their company lacks experience in this field and explicitly states, "this is a high-risk venture." |
| Q27 | board meeting | Mark, have you forgotten that we have to have our conclusions ready for tomorrow's board meeting? That's when the official decision will be made | Excerpt/Transcript Explanation: The transcript shows Mary reminding Mark that they need their final thoughts ready for the company directors' meeting tomorrow, because that is when the formal choice will be decided. Answer Explanation: The answer refers to an official gathering of company leaders that will take place the next day. Reason For Correctness: The correct answer is "board meeting" because Mary mentions that the team must finish their conclusions before tomorrow's meeting, which is the exact moment when the "official decision will be made." Keywords in the prompt include "official decision" and "tomorrow's", matching Mary's words directly. |
| Q28 | — | — | |
| Q29 | — | — | |
| Q30 | A / B / E | First of all, I would like assurances that the management of Bizz-Educators won't oppose us outright. That would make the bid too difficult. Secondly, I think we need to ask an independent mediator to broker the deal on our behalf We must keep the deal secret until it goes through though; if this gets leaked to the press, Bizz-Educators won't be happy. That will make the management even more hostile towards us. Dave: Good point, agreed |
Excerpt/Transcript Explanation: The transcript shows Mary demanding two things: confirmation that the company's managers will not resist the deal, and hiring an outside mediator to handle negotiations. Mark then insists that the deal must be kept completely private until it is finished, which Dave immediately accepts. Answer Explanation: The answer means that for the purchase to happen, three conditions must be met: the leaders of Bizz-Educators must promise not to fight the purchase (A), an outside, neutral person must help negotiate the agreement (B), and the transaction must remain hidden from the public until it is completed (E). Reason For Correctness: The correct answer is A, B, and E because Mary and the team discuss the specific conditions needed for the takeover to proceed. First, Mary states two conditions: they must have 'assurances that the management of Bizz-Educators won't oppose us' (matching option A) and they should 'ask an independent mediator to broker the deal' (matching option B). Then, John suggests an audit (option C), but Mark rejects it as unnecessary, and Dave agrees that profit margins (option D) and goodwill (option F) do not need review. Instead, Mark adds a third condition: 'keep the deal secret until it goes through' (matching option E), which Dave and Mary agree to. |
Transcript
Mary: So ... let's go over this again. We don't want to make any mistakes and we all need to agree we're making the right decision.
John: Absolutely; we'd have to spend a lot of money to buy Bizz-Educators Inc; almost £10 million. So let's get this right, otherwise it'll be our necks on the line.
Dave: Well, I for one think this is an excellent opportunity for our company to expand and break into a new market. I say we should go ahead with the takeover. At £10 million, Bizz-Educators is good value for money.
Mary: Ok Dave, I know you're very much in favour of the acquisition. How about you summarise the plus points of this venture for us. Mark, you're less certain and you've highlighted some issues already. Will you summarise the downsides?
Mark: I'd be only too happy to.
John: Right then, Dave, let's start with you. Why is this proposal so attractive? What are the upsides?
Dave: It's simple economics. Bizz-Educators has a proven track record and is an industry leader. It is a well-respected company with a great name, has generated excellent goodwill, and has consistently made a gross profit of more than £500,000 per annum with a great shareholder return.
Mark: Yeah, but what about the net profit? That's not nearly as high. In fact, last year it made a net loss of £100,000.
Dave: Mark, that's only because it invested in a new manufacturing plant. That's a long-term investment to secure the company's future. In fact, it's a good thing, not a bad thing. It shows that the company has a clear and ambitious strategy going forward. Besides, a £100,000 loss is very small in real terms. It's hardly worth being concerned about. That loss will be clawed back within two years if the projected profits for 2012 and 2013 materialise. The forecast is for a net profit of £500,000 in 2012 and £1,000,000 in 2013. The figures speak for themselves. This is a sound investment.
John: I have to agree with Dave. Why are you so sceptical Mark?
Mark: I see where Dave is coming from, but we're overlooking some vital facts. First of all, this company wants to remain an independent entity. Hostile takeover bids are fraught with danger. We know from experience; remember Davidsville Inc.? We spent a fortune researching that company and creating a workable business plan only for the merger to fall through.
Mary: Mark's right, it is always difficult to buy a company that doesn't want to be sold. Davidsville was a disaster. Continue Mark.
Mark: That's not my only concern. I am also worried that Bizz-Educators is a production-based company. We have no experience running companies like that. Our market is investment banking and trading. We would have to hire outside managers to run Bizz-Educators for us. That's going to cost more money. Look, I'm not saying it can't be done; I'm just saying this is a high-risk venture. Plus there's no synergy. Our business is totally different, so we can't save costs by combining departments.
John: Well, we can certainly see that this decision is not straightforward, by any means.
Mary: Maybe, but we have to come to a conclusion soon; it's almost five o'clock.
Mark: What's the hurry? Can't we postpone our decision and discuss the takeover proposal again tomorrow?
Mary: Mark, have you forgotten that we have to have our conclusions ready for tomorrow's board meeting? That's when the official decision will be made.
Dave: Goodness, it almost slipped my mind. Well, we'd best move on. Mary, John, you were uncertain before. Now that you've listened to the pros and cons of the proposal, what do you think?
John: I think it's a great opportunity for our business. Bizz-Educators is definitely profitable and it is a business on the up, it's growing and is a very attractive takeover proposition for that reason.
Mary: No-one doubts that it's a very successful business, but the question is should we invest? I say we should, provided we can guarantee the following: First of all, I would like assurances that the management of Bizz-Educators won't oppose us outright. That would make the bid too difficult. Secondly, I think we need to ask an independent mediator to broker the deal on our behalf. Last time we tried to negotiate our own takeover it was a disaster, as Mark said.
John: I agree Mary. I'd also like us to carry out another audit of the company's books.
Mark: In fairness John, I don't think that's necessary. We've done a thorough audit already. It'll just cost more money. We must keep the deal secret until it goes through though; if this gets leaked to the press, Bizz-Educators won't be happy. That will make the management even more hostile towards us.
Dave: Good point, agreed. I don't think we need to be concerned about projected profit margins, goodwill or accounting issues. Bizz-Educators has kept very up-to-date account books.
Mary: Great, then we're all agreed the takeover should go ahead provided we proceed cautiously.