Cambridge IELTS 12, Test 8, Reading Passage 3: UK Companies Need More Effective Boards of Directors, Solution With Answer Key

UK Companies Need More Effective Boards of Directors Passage Solution with Answer Key – Cambridge IELTS 12, Test 8: Reading Passage 3. Here we will discuss detailed explanation of all the questions of the passage. Here is step by step Solution with Tips and Strategies. This post is for educational purpose only. If you find difficulties in reading passage to find the right answer in the exam, just read the post carefully. Tips and strategies will help you find the right answer.


UK Companies Need More Effective Boards of Directors

IELTS Reading Passage Solution


IELTS Cambridge 12, Test 8 or Test 4, Academic Reading Module, Reading Passage 3


PASSAGE 3: UK Companies Need More Effective Boards of Directors (View Full Passage Here)

Questions 27-33 (List of headings):

** Tips (link details): How To Solve List of Heading in IELTS Reading Passage


General Idea:  Skimming is the best reading technique. You need not understand every word here. Just try to gather the gist of the sentences. That’s all. Read quickly and don’t stop until you finish each sentence.

Question 27: Paragraph A
Now, in paragraph A, lines 6-8 talk about the responsible authority who are to blame for the problems. Here, it is mentioned, “…. .. . the search for explanations in the many post-mortems of the crisis has meant blame has been spread far and wide. Governments, regulators, central banks and auditors have all been in the frame.”
Answer: iv

Question 28: Paragraph B
Now, in paragraph B, lines 2-3 deal with the impact of the scrutiny on the companies. The lines say, “…….. an issue of intense public debate and has significantly increased the pressures on, and the responsibilities of, directors.”
Answer: ii

Question 29: Paragraph C
Now, in paragraph C, lines 2-3 talk about the less involvement of the board in meeting some important issues. The lines say, “….. .. . but can mean that the board as a whole is less involved in fully addressing some of the most important issues.”
Answer: vi

Question 30: Paragraph D
Now, in paragraph D, lines 1-4 deals with a proposal for large companies which can solve the problem of operating the board. The lines say, “A radical solution, which may work for some very large companies whose businesses are extensive and complex, is the professional board, whose members would work up to three or four days a week, supported by their own dedicated staff and advisors.” We cannot say that it is a clean solution; rather it is a proposal because the writer is saying that it may work.
Answer: viii

Question 31: Paragraph E
Now, in paragraph E, the answer lies in the first lines. Here, lines 1-2 say, “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.” It means that boards are not looking far enough.
Answer: vii

Question 32: Paragraph F
Now, in paragraph F, the answer can be found in the first few lines. Here, in lines 1-2, the author says, “Compensation for chief executive has become a combat zone where pitched battles between investors, management and board members are fought, ….”. This means that there is an ongoing dispute about financial matters of the chief executives or senior managers.
Answer: i

Question 33: Paragraph G
Now, in paragraph G, the answer is found in lines 5-6 where the writer says, “…… 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”. It means that boards in all sectors or every area need to change fundamentally in their corporate goals.
Answer: iii


Questions 34-37 (YES/NO/NOT GIVEN):

** Tips (link details): How To Solve Yes, No, Not Given Question in IELTS Reading Module?

Question 34: Close scrutiny of the behaviour of boards has increased since the economic downturn.
Keywords: close scrutiny, behaviour of boards, increased, economic downturn
Now, in paragraph A line 4, we nd the reference of economic downturn (the 2008 financial meltdown). In lines 8-10 of the same paragraph, the author says,” ….. The role of bank directors and management and their widely publicized failures have been extensively picked over and
examined in reports, inquiries and commentaries.”
Here, the role = behaviour; extensively picked over = close scrutiny increased;
Answer: YES

Question 35: Banks have been mismanaged to a greater extent than other businesses.

Keywords: banks, mismanaged, greater extent, than, other businesses.
now, we cannot find any comparison on mismanagement between banks and other businesses in paragraph A, B or C.

Question 36: Board meetings normally continue for as long as necessary to debate matters in full.
Keywords: Board meetings, continue, as long as, necessary, debate matters, in full
now, in paragraph B, lines 10-12 say, “….. Agendas can become overloaded and this can mean the time for constructive debate must necessarily be restricted in favour of getting through the business.” This means that debates are restricted for the sake of business.
Answer: NO

Question 37: Using a committee structure would ensure that board members are fully informed about significant issues.
Keywords: committee structure, ensure, board members, fully informed, significant issues
Now, in paragraph C lines 1-2 say, “Often, board business is developed to committees in order to cope with the workload, which may be more efficient but can mean that the board as a whole is less involved in fully addressing some of the most important issues.” This means that using a committee cannot ensure that board members are informed about important issues.
Answer: NO


Questions 38-40 (Completing sentences with ONE WORD ONLY):

** Tips (link): How to Solve Sentence Completion Questions in IELTS Reading Module?

Question 38: Before 2008, non-executive directors were at a disadvantage because of their lack of _________.

Keywords: before 2008, non-executive directors, at a disadvantage, because, lack of
Now, in paragraph D, lines 10-11 say, “…… where the executives had access to information that part-time non-executive directors lacked, leaving the latter unable to comprehend or anticipate the 2008 crash.” This means that the non-executive directors lacked or did not have access to information and could not anticipate the 2008 financial crash.
Answer: information

Question 39: Boards tend to place too much emphasis on _________ considerations that are only of short-term relevance.
Keywords: boards, place too much emphasis, considerations, of short-term relevance
Now, in paragraph E line 3, the writer says, “…. ..but instead concentrate too much on short-term financial metrics.”
Here, concentrate too much = place too much emphasis
Answer: financial

Question 40: On certain matters, such as pay, the board may have to accept the views of ___________.
Keywords: pay, board, may have to, accept, views of
Now, from our finding in question 32 we came to know that there are often conflicts/debates between investors and boards concerning the matter of compensation, or in other words pay. Moreover, in paragraph F we have found that “shareholders use their muscle in the area of pay to pressure boards to remove underperforming chief executives”. The passage also says: “Their powers to vote down executive remuneration policies increased when binding votes came into force”. If a decision is “binding”, this means that it must be accepted by the board. For this reason, the only word to fill in this blank is either “investors” or “shareholders”.
The word “compensation” is a clear synonym for payment or remuneration, so it has to do with money.
Answer: investors / shareholders



View Full Passage Here

Answer Key – UK Companies Need More Effective Boards of Directors

Cambridge IELTS 12 Test 8 Answer Key, Reading Passage 3


UK Companies Need More Effective Boards of Directors Reading Passage Answers Keys

Passage 3

27. iv

28. ii

29. vi

30. viii

31. vii

32. i

33. iii

34. YES


36. NO

37. NO

38. information

39. financial

40. shareholders/investors



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