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The CEO of Telcorp, Howard Ballantine, has been accused of using company money to invest in personal real estate deals. A private committee was hired to investigate Mr. Ballantine’s financial activity after Walter Scott, the senior accountant at Telcorp, noticed nearly 2 million dollars was missing from the company’s primary investment account. Mr. Scott discovered the problem three months ago and reported it to Richard Flint, Telcorp’s chief financial advisor. Howard Ballantine denies any wrongdoing, and is hiring his own team of financial officers to investigate the matter, a close friend of Ballantine’s said. Telcorp was the nation’s leading producer of cell phones until Softphone Inc. opened a factory in China six months ago, which enabled it to save nearly 10 million dollars in production costs. Mr. Ballantine’s alleged actions suggest that the company will face more trouble in the future.
1. According to the article, what mistake did the CEO of Telcorp make?

2. How did Softphone Inc. decrease operation costs drastically?

Sim’s Super Sale!

To commemorate ten years of business, Sim’s is having a giant sale. The sale starts at 8:00 a.m. on Saturday, July 9th, and ends at midnight on Sunday, July 10th. All sports equipment is 20 percent off*. All men’s and women’s sports apparel is 15 percent off, including the exclusive Swish brand running shoes and shorts. Customers who have a Sim’s Super Savings Card will receive an additional 10 percent off their entire purchase. (If you want to become a Sim’s member, please fill out the application on our website at Also, please bring your children: Ron Barkley, the lead scorer for the L.A. Rockets, will be giving a special demonstration on how to dribble a basketball. All children over the age of 8 are welcome. Entrance is free, but all children must wear sneakers and bring their own basketball.

*Offer does not apply to bikes, treadmills, or golf clubs.

3. Why did Sim’s decide to have a sale this weekend?

4. Which of the following is NOT true about the sale?

5. What can be inferred about Ron Barkley from the advertisement?

The Grant Corporation plans to open a new factory by the end of 2008, a company spokesman said. The new factory is scheduled to be built in Dobson County and will create approximately 1,000 new jobs for the local community. The mayor of Dobson County, Frank Ploy, said the new factory will be a positive addition to the town, and that the town will support all efforts to construct the factory as planned. The Grant Corporation is the world’s largest producer of airplane parts, and is renowned for its strict environmental policies. In 2007, the company receives the prestigious Better Business Award for implementing a new waste it produced by nearly 25 percent. Currently, the company owns four other factories, and has been very successful at securing the support of all the communities it affects. Just last March, the factory in Trenton, New Jersey, sponsored a charity event that raised 2 million dollars of a local elementary school. The residents of Dobson County hope to receive the same benefits from the new factory. The Grant Corporation plans to build the new facility on the grounds of the old Milner Factory. Milner Automobiles abandoned the factory last year after it built a bigger factory in Michelan, a city about thirty-five miles north of Dobson County. According to a company spokesman, the old factory will be demolished before construction on the new facility begins.
6. What will probably happen in Dobson County by the end of 2008?

7. The word “renowned” in line 7, is closest in meaning to

8. According to the article, what was one benefit of the company’s award-winning program?

9. How did The Grant Corporation help Trenton residents?

10. Why did the Milner Factory most probably close?