‘UK companies need more effective boards of directors’- Reading Answer Explanation- CAM- 12
Here are explanations of the Questions of passage named, ‘UK companies need more effective boards of directors’ which is from the Cambridge 12 book. The Questions that have been asked are ‘Blanks, List of headings and Yes/No/Not Given’. You will find the locations of the Reading Answers, Keywords(highlighted and underlined) and justifications.
READING PASSAGE 3: UK companies need more effective boards of directors.
| Question | Answer |
| 27 | IV |
| 28 | II |
| 29 | VI |
| 30 | VIII |
| 31 | VII |
| 32 | I |
| 33 | III |
| 34 | YES |
| 35 | NOT GIVEN |
| 36 | NO |
| 37 | NO |
| 38 | INFORMATION |
| 39 | FINANCIAL |
| 40 | SHAREHOLDERS/INVESTORS |
Questions 27-33
Reading Passage 3 has seven paragraphs, A-G
Choose the correct heading for each paragraph from the list of headings below.
Write the correct number, i-viii, in boxes 27-33 on your answer sheet.
List of Headings
i Disputes over financial arrangements regarding senior managers
ii The impact on companies of being subjected to close examination
iii The possible need for fundamental change in every area of business
iv Many external bodies being held responsible for problems
v The falling number of board members with broad enough experience
vi A risk that not all directors take part in solving major problems
vii Broads not looking far enough ahead
viii A proposal to change the way the board operates
27 Paragraph A
Location: A paragraph
Explanation: The answer to this question is in the last two lines of the paragraph. ‘Governments, regulators, central banks and auditors have all been in the frame. The role of bank directors and management and their widely publicised failures…’Here, ‘Government, regulators, central banks and auditors’ are external bodies that are being held responsible.
Answer: iv
28 Paragraph B
Location: B paragraph (First line)
Explanation: The writer says, ‘The knock-on effect of this scrutiny has been to make the governance of companies in general issue of intense public debate and has significantly increased the pressures on, and the responsibilities of, directors.’ Here, ‘effect’ and ‘impact’ are synonyms. Moreover, the effect on companies are intense public debate.
Answer: ii
‘UK companies need more effective boards of directors’- Reading Answer Explanation- CAM- 12
29 Paragraph C
Location: C paragraph
Explanation: The answer to this question is in the first line of the paragraph. ‘board business is devolved to committees in order to cope with the workload…that the board as a whole is less involved in fully addressing some of the most important issues. Here, ‘board as a whole is less involved’ makes it clear that not all directors take part in solving major problems. Thus, the answer is vi.
Answer: vi
30 Paragraph D
Location: D paragraph
Explanation: The location of the answer is in the first line of the paragraph. ‘A radical solution, which may work for some very large companies whose businesses are extensive and complex, is the professional board…’Here, ‘a radical solution, which may work’ clearly states that it is a proposal that may work but not a permanent solution. Hence, the answer is viii.
Answer: viii
‘UK companies need more effective boards of directors’- Reading Answer Explanation- CAM- 12
31 Paragraph E
Location: E paragraph
Explanation: The answer to this question is in the first line of the paragraph. ‘One of the main criticisms of boards and their directors is that they do not focus sufficiently on longer-term matters of strategy, sustainability and governance…’Here, ‘do not focus…’ and ‘not looking’ means the same. In addition, ‘far’ and ‘longer-term’ are synonyms. ‘Sufficiently’ is the synonyms of ‘enough’. Hence, the answer is vii
Answer: vii
32 Paragraph F
Location: F paragraph
Explanation: The location of the answer is in the first line of the paragraph. ‘Compensation for chief executives has become a combat zone where pitched battles between investors, management and board members are fought, often behind closed doors…’ Here, ‘chief executives’ is a senior manager. Here, ‘fought’ and ‘disputes’ means the same. Thus, the answer is clear.
Answer: i
‘UK companies need more effective boards of directors’- Reading Answer Explanation- CAM- 12
33 Paragraph G
Location: G paragraph
Explanation: The answer to this question is in the last line of the paragraph. ‘Boards of companies in all sectors will need to widen their perspective to encompass these issues and this may involve a realignment of corporate goals.’ Here, ‘all sectors’ and ‘in every area’ means the same. This statement makes an answer very clear.
Answer: iii
Questions 34-37
Do the following statements agree with the claims of the writer in Reading Passage 3?
In boxes 34-37 on your answer sheet, write
YES if the statement agrees with the claims of the writer
NO if the statement contradicts the claims of the writer
NOT GIVEN if it is impossible to say what the writer thinks about this
34 Close scrutiny of the behaviour of boards has increased since the economic downturn.
Location: A paragraph
Explanation: The main keyword is ‘economic downturn’ and its reference is there in the third line of the paragraph. ‘The role of bank directors and management and their widely publicised failures have been extensively picked over and examined in reports, inquiries and commentaries. Here, ‘extensively picked over’ means ‘close scrutiny’. Moreover, ‘role’ and ‘behaviour’ means the same. Hence, the answer is clear.
Answer: Yes
‘UK companies need more effective boards of directors’- Reading Answer Explanation- CAM- 12
35 Banks have been mismanaged to a greater extent than other businesses.
Location: A paragraph
Explanation: There is no any comparison on mismanagement between banks and other businesses. Thus, no information available.
Answer: Not Given
36 Board meetings normally continue for as long as necessary to debate matters in full.
Location: B paragraph
Explanation: The main keyword ‘board meetings’ helps to locate an answer in the ‘Agendas can become overloaded and this can mean the time for constructive debate must necessarily be restricted in favour of getting through the business.’ The question statement contradicts the passage statement. Board meetings do not continue as debates are restricted in favour of business. Thus, the answer is clear.
Answer: No
‘UK companies need more effective boards of directors’- Reading Answer Explanation- CAM- 12
37 Using a committee structure would ensure that board members are fully informed about significant issues.
Location: C paragraph
Explanation: The main keyword ‘committee structure’ is there in the first line of the paragraph. ‘Often, board business is devolved to committees… but can mean that the board as a whole is less involved in fully addressing some of the most important issues’. Here, ‘fully informed’ is opposite to the ‘less involved in fully addressing’. Hence, the answer is No.
Answer: No
Questions 38-40
Complete the sentences below.
Choose ONE WORD ONLY from the passage for each answer.
Write your answers in boxes 38-40 on your answer sheet.
38 Before 2008, non-executive directors were at a disadvantage because of their lack of ………………………..
Location: D paragraph
Explanation: The main keyword ‘non-executive’ is there in the last line of the paragraph. ‘banks where the executives had access to information that part-time non-executive directors lacked…’This statement makes it clear that there was lack of information. Thus, the answer is clear.
Answer: Information
‘UK companies need more effective boards of directors’- Reading Answer Explanation- CAM- 12
39 Boards tend to place too much emphasis on …………………………. considerations that are only of short-term relevance.
Location: E paragraph
Explanation: The answer to this question is in the second line of the paragraph. ‘but instead concentrate too much on short-term financial metrics. Here, ‘concentrate’ and ‘emphasis’ are synonyms. Hence, the answer is ‘financial’.
Answer: Financial
40 On certain matters, such as pay, the board may have to accept the views of ………………………..
Location: F paragraph
Explanation: The location of the answer is in the first and third line of the paragraph. ‘Compensation for chief executives has become a combat zone where pitched battles between investors, management and board members are fought… Many would argue that this is in the interest of transparency and good governance as shareholders use their muscle in the area’ Here, ‘compensation’ means ‘payment’. Thus, there can be two answers of this question.
Answer: Shareholders/ investors
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