# UK companies need more effective boards of directors: answers and explanations

Cambridge IELTS 12, Test 4, Reading Passage 3

Source: Passage, questions and answer key from Cambridge IELTS 12, Test 4, Reading Passage 3. © Cambridge University Press & Assessment. Used for educational practice. Explanations and evidence notes are written by Testmigo.

## Answer key

| Q | Answer | Proof |
| --- | --- | --- |
| 27 | iv | Governments, regulators, central banks and auditors have all been in the frame. |
| 28 | ii | The knock-on effect of this scrutiny has been to make the governance of companies in general an issue of intense public debate |
| 29 | vi | can mean that the board as a whole is less involved in fully addressing some of the most important issues |
| 30 | viii | A radical solution, which may work for some very large companies whose businesses are extensive and complex, is the professional board |
| 31 | vii | they do not focus sufficiently on longer-term matters of strategy, sustainability and governance |
| 32 | i | Compensation for chief executives has become a combat zone |
| 33 | iii | Boards of companies in all sectors will need to widen their perspective |
| 34 | YES | have been extensively picked over and examined in reports, inquiries and commentaries ... has significantly increased the pressures on, and the responsibilities of, directors |
| 35 | NOT GIVEN | The role of bank directors and management and their widely publicised failures |
| 36 | NO | the time for constructive debate must necessarily be restricted in favour of getting through the business |
| 37 | NO | which may be more efficient but can mean that the board as a whole is less involved |
| 38 | information | where the executives had access to information that part-time non-executive directors lacked |
| 39 | financial | but instead concentrate too much on short-term financial metrics. |
| 40 | shareholders | shareholders use their muscle in the area of pay to pressure boards ... Their powers to vote down executive remuneration policies increased when binding votes came into force. |

## Why these answers are right

**27. iv.** Paragraph A describes the search for explanations after 2008, saying blame has been spread far and wide and that governments, regulators, central banks and auditors have all been in the frame. These are outside bodies being held responsible, so heading iv fits.

**28. ii.** Paragraph B begins with the knock-on effect of scrutiny and then lists the results for companies: public debate, more pressure on directors, more meetings and more reading. This impact of close examination on companies matches heading ii.

**29. vi.** Paragraph C explains that board business is often passed to committees, which may be efficient but can leave the board as a whole less involved in the most important issues. That danger of some directors not taking part matches heading vi.

The why and the trap for questions 30 onwards are free with an account on the [answers page](https://testmigo.com/ielts/reading/uk-companies-need-more-effective-boards-of-directors/answers).

[Practice UK companies need more effective boards of directors](https://testmigo.com/ielts/reading/uk-companies-need-more-effective-boards-of-directors)