Career Insider Verbal Aptitude Test 0007

Structure

Umbrella organisation: It supports the Executive Board with the management of the entire corporate group. Some members of the umbrella organisation are members of the Executive  Board at the same time. Among other individuals, Thomas Morton is a member of the Executive Board. The umbrella organisation is superordinate to three divisions:

Materials: As a rule, customers are from the automotive, shipbuilding and mechanical engineering industry. As well as that some customers are producers and manufacturers of household appliances or metal products. Every customer has special requirements with regard to materials. The Materials Division offers globally innovative materials.

Traffic: This division is Steel Ltd’s largest and most important, and it also produces transport systems as well as system components. In terms of customer clusters, most customers lie in Western Europe, but also countries all over the world.

Engineering: The Engineering Division specialises in mechanical engineering and plant engineering. Although this division somewhat small, the corporate group will not withdraw from this sector in the foreseeable future because it is of strategic importance.

 

Strategy

The assertion of the leading position in the world market:

Innovations: Steel Ltd. has developed new processing technologies which improve the quality of stainless steel, titanium and nickel alloys. Some of these technologies are particularly energy-saving. Various materials have been optimised in order to save environmental resources on a sustainable basis.

Capacity expansion: It was possible to expand the production of transport system components through the expansion or the new establishment of assembly locations. Synergy effects were achieved through the consolidation and relocation of production sites.

Increased Flexibility: For a more individualised handling of orders with regard to special orders, Steel Ltd. has made the working hours of skilled workers – who are employed in the Engineering Division and who have a wealth of experience in their respective sphere of activity – more flexible.

 

Principles

Corporate governance principles: All divisions and the umbrella organisation as well as the research organisation are obligated to comply with them. These include:

Shareholder’s rights: These include the acquisition and free sale of shares, exercising the right to vote as well as a participator’s share in the corporate profit.

Executive Board of Directors and Supervisory Board obligations: They are obligated to comply with the interests of Steel Ltd. The Executive Board decides on the corporate strategy and has to regularly inform the Supervisory Board about the state of the corporate group. If the Executive Board decides on the corporate strategy, the Supervisory Board has to approve it.

Remuneration: The remuneration of the Executive Board members is determined by the Supervisory Board, whereas the Executive Board decides on the remuneration of the top corporate management executives.

Transparency: is not ensured if financial reports are not provided in a timely manner, at optimum every financial quarter.

 

Products & Services

Construction: In addition to the construction of machines, these products and services also comprise the construction of turnkey chemical and industrial facilities as well as power plants.

Automotive: Steel Ltd. supplies vehicle manufacturers with chassis and electronic components. Due to increasing customer demands Steel Ltd. develops complete system components such as braking systems, stabiliser and damping systems as well as active safety systems.

Metals & Composites: These products and services encompass metals in particular. These include, among other things, special steel and aluminum alloys, but also metal ceramics. Special materials can be developed for special requirements and also manufactured by Steel Ltd. if needed. The prices of special materials essentially depend on the quantity ordered.

Research and development: are conducted in collaboration with universities and advanced technical colleges in Germany, Great Britain, France and the USA. The new developments are brought into production within the shortest possible time.

 

Locations

Traffic: Chassis components for passenger vehicles and heavy good vehicles are manufactured in the USA, whereas electronic systems are rather produced in Australia, Asia, Europe and South America.

Materials: In addition to Europe, the USA and Asia, steel as well as aluminum alloys are also manufactured in Australia. In some countries in which Steel Ltd. manufactures aluminum alloys the company also produces metal ceramics.

Engineering: The regional hubs lie in Germany, France, Great Britain and Northern Italy. For the most part, research and development are conducted in Great Britain.

Regional hubs: In Europe, particularly in Germany, Steel Ltd. has a strong position in all corporate segments. If one assumes the number of employees as a criterion, then Steel Ltd’s most important branch location is Dortmund.

 

Board of Directors

Dr. Thomas Morton: Chairman of the Board and certified economist. He has been on the Executive Board for five years. After earning his doctorate in San Francisco he was working for the American aircraft manufacturer Thunder for ten years as the production manager.

Melanie Grison: Director of the Traffic Division. After completing her apprenticeship with Steel  Ltd. as a machine fitter she studied mechanical engineering and then returned to Steel Ltd. as a major customer consultant. Later she assumed project management functions in New York and  Los Angeles and then became head of the Traffic Division.

Anthony Crown: Information scientist and head of the Engineering Division. He initially worked as a systems analyst in the realm of statical calculation, but then switched to Steel Ltd’s IT department as IT project manager and become head of the Engineering division after five years.

Dr. Howard Jacob: Economist and head of the Materials Division. For ten years he was active for a steel manufacturer in various Asian countries (among others, Malaysia and Hong Kong), and then on account for a good offer he switched to Steel Ltd. to work as a strategy consultant. 

Instruction: In this test, you will be presented with statements that need to be evaluated individually. Your task is to evaluate the truthfulness of the individual statements based only on the information contained in the brief. First, read the statement then select and look at the material to evaluate that statement.

Then, evaluate the statement. Select TRUE if the statement is absolutely true given the information contained in the brief. Select FALSE if the statement is absolutely untrue given the information contained in the brief. Select CANNOT SAY if you cannot absolutely say, without further information, whether the statement is true or false based on the information contained in the brief.

 

Question 1

Thomas Morton has been on the Executive Board of Steel Ltd. for six years.

 

Question 2

Thomas Morton is a Doctor of Philosophy.

 

Question 3

Thomas Morton is a member of Steel Ltd’s umbrella organisation.

 

Question 4

Thomas Morton worked for the aircraft manufacturer Thunder in America.

 

Question 5

Vehicle manufacturers can only acquire electronic components from Steel Ltd’s Automotive products and services.

 

Question 6

Vehicle manufacturers can procure chassis components from the Automotive product and service range.

 

Question 7

Vehicle manufacturers only purchase products from Steel Ltd’s Automotive products and services.

 

Question 8

Written reports on Steel Ltd’s finances have to be submitted in accordance with the rules relating to transparency.

 

Question 9

Due to the company’s own increased requirements, Steel Ltd’s Automotive products and services include complete active safety systems.

 

Question 10

The skilled workers, for whom Steel Ltd. makes working hours more flexible in the course of asserting its leading position on the world market, have a wealth of experience in their exclusive sphere of activity.

 

Question 11

The skilled workers, for whom Steel Ltd. made working hours more flexible in the course asserting its leading position in the world market, have a wealth of experience exceeding their specific sphere of activity.

 

Question 12

Better quality research and development by Steel Ltd. is conducted in Great Britain than in France.

 

Question 13

If steel is produced in a country by Steel Ltd., they never manufacture metal ceramics in that country.

 

Question 14

According to Steel Ltd’s corporate principles, every shareholder can purchase as many shares as they would like to.

 

Question 15

Howard Jacob is the only member of the Executive Board who has already worked as a consultant.

 

Question 16

For the most part, research and development for the Engineering Division is conducted in France.

 

Question 17

If the supervisory Board has to approve of a decision made by the Executive Board, then as a rule - in accordance with Steel Ltd’s corporate principles - the decision is not about the corporate group strategy.

 

Question 18

Thomas Morton is also a member of the umbrella organisation.

 

Question 19

Steel Ltd’s main location is Essen.

 

Question 20

According to the Steel Ltd’s corporate principles, the Executive Board decides on the remuneration of the top corporate management executives.

 

Test Solutions

Question 1

Suggested Solution: False

Board of Directors - Dr. Thomas Morton:

He has been on the Executive Board for five years.

 

Question 2

Suggested Solution: Cannot Say

Board of Directors - Dr. Thomas Morton:

Chairman of the Board and certified economist. He has been on the Executive Board for five years. After earning his doctorate in San Francisco he was working for the American aircraft manufacturer Thunder for ten years as the production manager.

 

Question 3

Suggested Solution: True

 

Question 4

Suggested Solution: True

Board of Directors - Dr. Thomas Morton:

He was working for the American aircraft manufacturer Thunder.

 

Question 5

Suggested Solution: False

Products & Services - Automotive:

Steel Ltd. supplies vehicle manufacturers with chassis and electronic components.

 

Question 6

Suggested Solution: True

Products & Services - Automotive:

Steel Ltd. supplies vehicle manufacturers with chassis and electronic components.

 

Question 7

Suggested Solution: Cannot Say

Products & Services - Automotive:

Steel Ltd. supplies vehicle manufacturers with chassis and electronic components. Due to increasing customer demands Steel Ltd. develops complete system components such as braking systems, stabiliser and damping systems as well as active safety systems.

 

Question 8

Suggested Solution: Cannot Say

Principles - Transparency:

is not ensured if financial reports are not provided in a timely manner, at optimum every financial quarter.

 

Question 9

Suggested Solution: True

Products & Services - Automotive:

Due to increasing customer demands Steel Ltd. develops complete system components such as braking systems, stabiliser and damping systems as well as active safety systems.

 

Question 10

Suggested Solution: True

Strategy - Increased Flexibility:

For a more individualised handling of orders with regard to special orders, Steel Ltd. has made the working hours of skilled workers – who are employed in the Engineering Division and who have a wealth of experience in their respective sphere of activity – more flexible.

 

Question 11

Suggested Solution: False

Strategy - Increased Flexibility:

For a more individualised handling of orders with regard to special orders, Steel Ltd. has made the working hours of skilled workers – who are employed in the Engineering Division and who have a wealth of experience in their respective sphere of activity – more flexible.

 

Question 12

Suggested Solution: Cannot Say

Locations - Materials:

In addition to Europe, the USA and Asia, steel as well as aluminium alloys are also manufactured in Australia.

 

Question 13

Suggested Solution: Cannot Say

Locations - Materials:

As a rule, customers are from the automotive, shipbuilding and mechanical engineering industry. As well as that some customers are producers and manufacturers of household appliances or metal products. Every customer has special requirements with regard to materials. The Materials Division offers globally innovative materials

 

Question 14

Suggested Solution: True

Principles - Shareholder’s rights:

These include the acquisition and free sale of shares, exercising the right to vote as well as a participator’s share in the corporate profit.

 

Question 15

Suggested Solution: Cannot Say

Board of Directors - Dr. Howard Jacob:

Chairman of the Board and certified economist. He has been on the Executive Board for five years. After earning his doctorate in San Francisco he was working for the American aircraft manufacturer Thunder for ten years as the production manager.

 

Question 16

Suggested Solution: False

Location - Engineering:

For the most part, research and development is conducted in Great Britain.

 

Question 17

Suggested Solution: False

Principles - Executive Board of Directors and Supervisory Board obligations:

If the Executive Board decides on the corporate strategy, the Supervisory Board has to approve it.

 

Question 18

Suggested Solution: Cannot Say

Board of Directors - Dr. Thomas Morton:

Dr. Thomas Morton: Chairman of the Board and certified economist. He has been on the Executive Board for five years.

 

Question 19

Suggested Solution: Cannot Say

Location - Regional Hubs:

In Europe, particularly in Germany, Steel Ltd. has a strong position in all corporate segments. If one assumes the number of employees as a criterion, then Steel Ltd’s most  important branch location is Dortmund.

 

Question 20

Suggested Solution: True

Principles - Remuneration:

The remuneration of the Executive Board members is determined by the Supervisory Board, whereas the Executive Board decides on the remuneration of the top corporate management executives.