UK companies need more effective boards of directors: reading answers and analysis
After the 2008 crash, company boards came under intense public scrutiny. The writer describes the extra workload on part-time directors, the risks of handing work to committees, a proposal for professional boards, the pull of short-term numbers and fights over executive pay, and says boards must now rethink the purpose of the company.
The headings (27-33) take one paragraph each, A to G. The YES / NO / NOT GIVEN claims (34-37) run from A to C. The sentences (38-40) come from D, E and F, in order.
Answer key and self-check
Type what you wrote and hit mark. Hide the key first if you haven't done the passage yet. Every question number jumps to its explanation.
How to attack this block: Several headings sound like they could fit anywhere in a passage about boards, so look for the paragraph's main move. A spreads the blame, B is the effect of scrutiny, C the committee risk, D the proposal. The spare heading about experienced board members is never discussed.
Question 27
Answer: ivParagraph A, second half
Which heading fits Paragraph A?
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.
Question says → Passage says
Many external bodiesGovernments, regulators, central banks and auditors
being held responsible for problemsblame has been spread far and wide / have all been in the frame
Why: After the 2008 crash, blame was spread widely, and A lists governments, regulators, central banks and auditors as all 'in the frame'. Many outside bodies being blamed: iv.
The trap: ii (the impact of close examination) is tempting because A mentions reports and inquiries. But the effect of that scrutiny on companies is the subject of B.
Question 28
Answer: iiParagraph B, first sentence
Which heading fits Paragraph B?
The knock-on effect of this scrutiny has been to make the governance of companies in general an issue of intense public debate
Question says → Passage says
The impact on companiesThe knock-on effect
being subjected to close examinationthis scrutiny
Why: B opens by naming the 'knock-on effect of this scrutiny' and then describes it: more pressure, more meetings, more reading and less time for debate. That's ii.
The trap: vi (not all directors taking part) can seem to fit the overloaded agendas. But the paragraph's subject is the effect of scrutiny; directors stepping back from big issues is C.
Question 29
Answer: viParagraph C, first sentence
Which heading fits Paragraph C?
can mean that the board as a whole is less involved in fully addressing some of the most important issues
Question says → Passage says
A risk that not all directors take partthe board as a whole is less involved
solving major problemsfully addressing some of the most important issues
Why: Handing work to committees means the full board is less involved in the biggest issues, and boxes get ticked rather than problems tackled. Not every director takes part: vi.
The trap: v (falling number of experienced members) sounds plausible for a paragraph about the board's workload, but C never talks about experience or numbers. v is the spare heading.
Question 30
Answer: viiiParagraph D, first sentence
Which heading fits Paragraph D?
A radical solution, which may work for some very large companies whose businesses are extensive and complex, is the professional board
Question says → Passage says
A proposalA radical solution
to change the way the board operatesthe professional board, whose members would work up to three or four days a week
Why: D puts forward one idea, the professional board, and weighs its risks and benefits. A radical solution for how boards work: viii.
The trap: iii (fundamental change in every area of business) is tempting because D's solution is 'radical'. But D says it wouldn't suit all companies, which is the opposite of 'every area'.
Question 31
Answer: viiParagraph E, first sentence
Which heading fits Paragraph E?
they do not focus sufficiently on longer-term matters of strategy, sustainability and governance, but instead concentrate too much on short-term financial metrics
Question says → Passage says
not looking far enough aheaddo not focus sufficiently on longer-term matters / concentrate too much on short-term financial metrics
Why: E's main criticism is short-termism: boards chase quarterly numbers instead of long-term strategy. That's not looking far enough ahead: vii.
The trap: i (disputes over financial arrangements) borrows the money theme, but E is about financial targets, not pay disputes. Those are in F.
Question 32
Answer: iParagraph F, first sentence
Which heading fits Paragraph F?
Compensation for chief executives has become a combat zone where pitched battles between investors, management and board members are fought
Question says → Passage says
Disputesa combat zone where pitched battles… are fought
Why: F is about fights over chief executives' pay, with the Barclays bonus as the example. 'Compensation' and 'remuneration' are the financial arrangements, and 'battles' are disputes: i.
The trap: ii (close examination) might attract you because F mentions press attention. That's a detail; the main idea is the conflict over pay.
Question 33
Answer: iiiParagraph G, second-last sentence
Which heading fits Paragraph G?
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.
Question says → Passage says
every area of businesscompanies in all sectors
The possible need for fundamental changewill need to widen their perspective… may involve a realignment of corporate goals
Why: G says trust in companies has fallen and boards 'in all sectors' may need to realign their goals. A possible deep change across all business: iii.
The trap: viii (a proposal to change how the board operates) is close, but G doesn't propose a specific change. It says companies in general may need to rethink their purpose.
YES / NO / NOT GIVEN
Questions 34-37
How to attack this block: Two are NO because the writer says debate gets cut short and committees can leave the full board less involved. The NOT GIVEN compares banks with other businesses, which the writer never ranks.
Question 34
Answer: YESParagraph A, end, and Paragraph B, first sentence
Has scrutiny of how boards behave grown since the downturn?
The role of bank directors and management and their widely publicised failures have been extensively picked over… The knock-on effect of this scrutiny has been to make the governance of companies in general an issue of intense public debate
Question says → Passage says
Close scrutiny of the behaviour of boardsextensively picked over and examined / this scrutiny
since the economic downturnFollowing the 2008 financial meltdown
Why: After 2008, directors' failures were examined in detail, and that scrutiny spread to company governance in general. So scrutiny of boards has increased: YES.
The trap: Some students feel the writer only describes banks, so they choose NOT GIVEN. B makes clear the scrutiny has spread to companies 'in general'.
Question 35
Answer: NOT GIVENParagraph A, last sentence
Were banks run worse than other businesses?
The role of bank directors and management and their widely publicised failures have been extensively picked over and examined in reports, inquiries and commentaries.
Question says → Passage says
Banks have been mismanagedbank directors and management and their widely publicised failures
Why: The writer says bank directors' failures were widely publicised and examined, but never compares banks with other businesses. NOT GIVEN.
The trap: Banks get most of the attention, and D says better boards would have been 'particularly appropriate' for banks. Neither is a claim that banks were worse managed than others.
Question 36
Answer: NOParagraph B, last sentence
Do board meetings usually go on until everything is fully discussed?
Agendas can become overloaded and this can mean the time for constructive debate must necessarily be restricted in favour of getting through the business.
Question says → Passage says
continue for as long as necessary to debate matters in fullthe time for constructive debate must necessarily be restricted
Why: Debate time gets cut so the board can get through the agenda. That's the opposite of meetings running until matters are fully debated: NO.
The trap: C says audit committee meetings can last longer than board meetings, which can make you think meetings run long. That's about committees, and it doesn't mean debate is complete.
Question 37
Answer: NOParagraph C, first sentence
Would using committees make sure board members are fully informed?
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
Question says → Passage says
Using a committee structureboard business is devolved to committees
ensure that board members are fully informed about significant issuesthe board as a whole is less involved in fully addressing some of the most important issues
Why: Committees may be efficient, but the full board ends up less involved in the most important issues. That contradicts 'ensure… fully informed', so NO.
The trap: 'More efficient' sounds like a point in favour, so some people choose YES. Efficient isn't the same as keeping everyone informed, and the writer says the reverse.
Sentence completion (ONE WORD ONLY)
Questions 38-40
How to attack this block: Each gap is one word from a separate paragraph. The first needs what non-executive directors lacked, the second an adjective before 'considerations' and the third the group that uses its power over pay. Check whether each gap needs a noun or an adjective.
Question 38
Answer: informationParagraph D, last sentence
What did non-executive directors lack before 2008?
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
Question says → Passage says
were at a disadvantageleaving the latter unable to comprehend or anticipate
because of their lack ofthat part-time non-executive directors lacked
Why: Executives had information the non-executives lacked, so the non-executives couldn't see the crash coming. The gap needs the noun 'information'.
The trap: 'Access' comes just before it, but the executives had the access. What the non-executives lacked was the information itself.
Question 39
Answer: financialParagraph E, first sentence
What kind of short-term considerations do boards overemphasise?
but instead concentrate too much on short-term financial metrics
Question says → Passage says
place too much emphasis onconcentrate too much on
considerations that are only of short-term relevanceshort-term… metrics
Why: Boards focus too much on short-term financial metrics. The sentence already covers 'short-term', so the gap needs the adjective 'financial'.
The trap: 'Metrics' is a noun and would leave you with 'metrics considerations'. 'Short-term' is already in the sentence.
Question 40
Answer: shareholdersParagraph F, second and third sentences
Also accepted: investors
Whose views on pay may the board have to accept?
shareholders use their muscle in the area of pay to pressure boards to remove underperforming chief executives
Question says → Passage says
On certain matters, such as payin the area of pay
the board may have to accept the views ofuse their muscle… to pressure boards / Their powers to vote down executive remuneration policies
Why: Shareholders use their power over pay to pressure boards, and binding votes let them reject pay policies. The board has to accept their views. The key also accepts 'investors'.
The trap: 'Management' is in the first sentence of F too, but managers are the ones being paid, not the ones forcing the board's hand.
C warns that committees can leave the board as a whole less involved. That's the risk that not all directors take part, not a falling number of experienced members.
The gap needs an adjective, 'financial', from 'short-term financial metrics'. Writing 'metrics' or 'short-term' breaks the sentence.
Words from this passage worth keeping
in the frame(A)
being considered as responsible for something
knock-on effect(B)
an indirect result that follows from something
devolved(C)
passed down to a smaller group to handle
remuneration(D)
payment for work
insatiable(E)
impossible to satisfy
pitched battles(F)
fierce, open conflicts
eroded(G)
gradually weakened or destroyed
realignment(G)
a change in direction or priorities
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The full Cambridge 12 Test 8 reading paper: all three passages, 60 minutes, marked the second you finish with a review of every answer. Already done it? Take it again and see if the same traps still get you.
Cambridge IELTS 12, Test 8, Reading Passage 3. The passage and questions belong to Cambridge University Press and are not reproduced here. We quote short extracts only as evidence for our own commentary, and the answers are published for self-marking. Get the book for the full text, or sit the test on Langujet.
