Mastering TOEIC Reading: Business Acquisition Proposals Practice Test

Part 1: Incomplete Sentences

1. The company is considering a(n) __ of its main competitor to expand market share.
   A. acquisition
   B. acquirement
   C. acquiescence
   D. acclimation

2. The board of directors will __ the proposal for the merger next week.
   A. review
   B. revise
   C. revive
   D. reveal

3. The potential acquisition could __ significant value for our shareholders.
   A. create
   B. decrease
   C. diminish
   D. destroy

4. Due diligence is a crucial step in the __ process before finalizing any deal.
   A. acquisition
   B. acquittal
   C. accrual
   D. accretion

5. The target company’s financial statements must be __ audited before proceeding.
   A. thoroughly
   B. thorough
   C. through
   D. thought

6. Synergies between the two companies could lead to cost __ and increased efficiency.
   A. savings
   B. increases
   C. reductions
   D. accumulations

7. The __ price offered for the acquisition is still under negotiation.
   A. purchase
   B. purchasing
   C. purchased
   D. purchaser

8. Regulatory __ is required before the merger can be finalized.
   A. approval
   B. approbation
   C. appreciation
   D. appropriation

9. The acquiring company must secure adequate __ to fund the transaction.
   A. financing
   B. finance
   C. financial
   D. financed

10. A thorough __ analysis is essential to determine the feasibility of the acquisition.
    A. risk
    B. risky
    C. risking
    D. risked

11. The __ agreement outlines the terms and conditions of the proposed acquisition.
    A. purchase
    B. purchasing
    C. purchased
    D. purchaser

12. Shareholders will vote to __ or reject the acquisition proposal at the annual meeting.
    A. approve
    B. approval
    C. approved
    D. approving

13. The company’s growth strategy includes both organic expansion and strategic __.
    A. acquisitions
    B. acquirements
    C. acquiescences
    D. acclimations

14. A __ agreement ensures confidentiality during the negotiation process.
    A. non-disclosure
    B. non-disclosing
    C. non-disclosed
    D. non-disclose

15. The integration plan addresses potential challenges in __ the two companies’ cultures.
    A. merging
    B. merge
    C. merged
    D. merger

16. The acquiring company must conduct a thorough __ of the target company’s assets.
    A. valuation
    B. value
    C. valued
    D. valuing

17. A successful acquisition can lead to increased market __ and competitive advantage.
    A. share
    B. sharing
    C. shared
    D. shares

18. The proposal includes plans for __ redundant positions to optimize efficiency.
    A. eliminating
    B. eliminate
    C. eliminated
    D. elimination

19. The board must consider the long-term __ implications of the acquisition.
    A. strategic
    B. strategy
    C. strategize
    D. strategical

20. A __ period allows the acquiring company to assess the target’s true financial position.
    A. transition
    B. transitional
    C. transiting
    D. transited

21. The acquisition proposal outlines expected __ and potential risks for stakeholders.
    A. benefits
    B. benefiting
    C. benefited
    D. beneficial

22. A __ team has been assembled to oversee the integration process post-acquisition.
    A. dedicated
    B. dedicate
    C. dedicating
    D. dedication

23. The companies must obtain __ clearance to ensure the merger doesn’t violate antitrust laws.
    A. regulatory
    B. regulate
    C. regulation
    D. regulating

24. The acquiring company plans to __ its product line through this strategic purchase.
    A. diversify
    B. diverse
    C. diversity
    D. diversion

25. A thorough __ analysis will help identify potential areas for cost savings.
    A. synergy
    B. synergistic
    C. synergize
    D. synergizing

26. The proposal includes plans for __ key talent from the acquired company.
    A. retaining
    B. retain
    C. retained
    D. retention

27. The acquisition is expected to __ the company’s market position in emerging markets.
    A. strengthen
    B. strong
    C. strength
    D. strongly

28. A detailed __ plan is crucial for successfully integrating the two companies.
    A. implementation
    B. implement
    C. implementing
    D. implemented

29. The board must carefully consider the __ impact of the acquisition on company culture.
    A. potential
    B. potent
    C. potency
    D. potentially

30. The acquiring company must ensure __ with all relevant laws and regulations.
    A. compliance
    B. comply
    C. complying
    D. compliant

TOEIC Reading: Business Acquisition Proposals

Part 2: Text Completion

Text 1

The process of acquiring another company is complex and requires careful planning. First, the acquiring company must (31) __ potential targets that align with its strategic goals. Once a suitable target is identified, the next step is to (32) __ a comprehensive due diligence process. This involves a thorough examination of the target company’s financial records, operations, and legal status.

After due diligence, the acquiring company will (33) __ an offer based on its valuation of the target. If the offer is accepted, both parties will enter into negotiations to finalize the terms of the deal. Throughout this process, it’s crucial to (34) __ open communication with stakeholders and ensure compliance with all relevant regulations.

31. A. identify
    B. identifiable
    C. identification
    D. identifying

32. A. conduct
    B. conducting
    C. conducted
    D. conduction

33. A. make
    B. making
    C. made
    D. maker

34. A. maintain
    B. maintaining
    C. maintained
    D. maintenance

Text 2

Successful acquisitions often hinge on effective integration planning. The acquiring company should begin developing an integration strategy (35) __ the deal is finalized. This plan should address key areas such as organizational structure, culture, and systems integration.

One critical aspect of integration is (36) __ key talent from the acquired company. This helps preserve valuable institutional knowledge and ensures continuity of operations. Additionally, clear communication about the integration process is essential to (37) __ employee concerns and maintain morale.

The integration plan should also include specific (38) __ for realizing synergies and achieving cost savings. By carefully executing the integration plan, companies can maximize the value created through the acquisition.

35. A. before
    B. after
    C. during
    D. while

36. A. retaining
    B. retain
    C. retained
    D. retention

37. A. address
    B. addressing
    C. addressed
    D. addressable

38. A. strategies
    B. strategic
    C. strategize
    D. strategical

Text 3

Financing an acquisition is a crucial consideration in the proposal process. Companies typically use a combination of cash, stock, and debt to fund acquisitions. The optimal financing structure depends on factors such as the size of the deal, the acquiring company’s financial position, and prevailing market conditions.

When using debt to finance an acquisition, companies must carefully (39) __ their ability to service the debt post-acquisition. This involves projecting future cash flows and considering potential synergies. Equity financing, on the other hand, may (40) __ existing shareholders but can provide more flexibility.

In some cases, companies may also consider alternative financing options such as (41) __ bonds or private equity investment. Regardless of the chosen method, it’s essential to ensure that the financing structure aligns with the company’s long-term strategic goals and does not overly (42) __ its financial stability.

39. A. assess
    B. assessing
    C. assessed
    D. assessment

40. A. dilute
    B. diluting
    C. diluted
    D. dilution

41. A. convertible
    B. converting
    C. converted
    D. conversion

42. A. compromise
    B. compromising
    C. compromised
    D. compromisable

Text 4

Regulatory approval is a critical step in the acquisition process, particularly for large or cross-border deals. Companies must (43) __ with antitrust laws and other relevant regulations in all jurisdictions where they operate.

The regulatory review process typically involves submitting detailed information about the proposed transaction to relevant authorities. These agencies will (44) __ the potential impact of the acquisition on market competition and consumer welfare.

In some cases, regulators may require companies to (45) __ certain conditions before approving the deal. This could include divesting certain assets or making commitments regarding future business practices. Failure to obtain necessary regulatory approvals can (46) __ the entire acquisition, making it crucial to address these issues early in the proposal process.

43. A. comply
    B. complying
    C. complied
    D. compliance

44. A. assess
    B. assessing
    C. assessed
    D. assessment

45. A. meet
    B. meeting
    C. met
    D. meets

46. A. derail
    B. derailing
    C. derailed
    D. derailment

Business Acquisition Proposal Analysis

Answer Key

Part 1: Incomplete Sentences

1. A
2. A
3. A
4. A
5. A
6. A
7. A
8. A
9. A
10. A
11. A
12. A
13. A
14. A
15. A
16. A
17. A
18. A
19. A
20. A
21. A
22. A
23. A
24. A
25. A
26. A
27. A
28. A
29. A
30. A

Part 2: Text Completion

31. A
32. A
33. A
34. A
35. A
36. A
37. A
38. A
39. A
40. A
41. A
42. A
43. A
44. A
45. A
46. A

This practice test covers various aspects of reading proposals for business acquisitions, focusing on key vocabulary, grammar, and comprehension skills required for the TOEIC Reading section. By working through these questions, test-takers can improve their understanding of business acquisition terminology and enhance their ability to interpret complex business texts.