Reading 1 hour PART ONE Questions 1 – 8 Look at the statements below andat the five reports about companies on the opposite page from an article givingadvice to self-employed consultants about negotiating fees for theirservices. Which book (A, B, C,D or E) dose each statement 1 –8 refer to? For each statement ! – 8, make one letter (A, B, C,D or E) on your AnswerSheet . You will need to use some of these letters more than once. Example : Lack of self-confidence will put you at a disadvantage in anegotiation . 0 A B C D E This company has been involved in diversifyingits business act6ivities. Although this company is doing well, it has anumber of internal difficulties to deal with This company has reduced theprofits it makes on individual items One statistic is a less accurate guideto this company’s performance than another The conditions which have helpedthis company are likely to be less favourable in the future This company’sshare price has been extremely volatile over the last twelve months Thiscompany is likely to be the subject of a takeover bid in the near future Thiscompany’s performance exemplifies a widely held belief A ChemicalCompany Masterson’s interim pre-tax profits growth of 20% was somewhatinflated as a result of the income received from the disposal of several of thecompany’s subsidiaries. The underlying 8% rise in operating profits is a morerealistic gauge of the company’s true progress. However, Masterson’s impendingmerger with Bentley and Knight and its appointment of a new chief executiveshould mean that the company will be able to sustain growth for the foreseeablefut5ure. The share price has varied little during the course of the year and nowstands at ￡ 6.75 B Hotel Group During the past year the Bowden HotelGroup has acquired 77 new properties, thus doubling in size . last week thegroup reported pre-tax profits of ￡ 88 million in the first six months of theyear, ahead of expectations and helped by a strong performance from itsLondon-based hotels and newly expanded US business. However. There is still someway to go. Integration of the new acquisitions is still not complete and, whilethe share price has risen recently, major problems with integration have yet tobe solved. C High-tech Company This time last year a share in Usertechwas worth just over ￡ 1. six months ago it was worth ￡ 40. today it is priced atunder ￡ 8 . if proof were need, here is an illustration of how much of a lotterythe technology market can be. But some technology companies are fighting backand Usertech is one of them . What has renewed excitement in the company is theopening of its new American offices in Dallas and its ambitious plans to expandits user base in both North and Latin America. D BuildingCompany Renton’s share price has risen gradually over the past year from ￡2.4to ￡ 3.8 . The company has been successful in choosing prime location for itsbuildings and has benefited from the buoyant demand for housing. Whilst thisdemand is expected to slow down somewhat during the next year, investors areencouraged by the company’s decision to move into building supermarkets. Workhas already begun on two sites in London, and the company is expected to sign acontract within the next month for building four large supermarkets inScotland. E Pottery Manufacturer Milton Dishes has been through ashake-up over the past year. The group, which has been cutting margins andimproving marketing, may post a small profit this year. The many members of theMilton family, who between them own 58 per cent of the business, have beenwatching the share price rise steadily and several are looking to sell. Traderival Ruskin has bought up just over 17 percent of the shares and could well bespurred into further action by the signs of a recovery at the firm.