As you know, many online companies weren't able to generate their projected earnings last year. Many of these Internet companies went out of business or had to fire a large number of employees. Although it was bad news when these companies started reducing the number of employees, a few of them are currently finding solutions to their problems. This week, I'd like to provide you with some information about which Internet businesses have the potential for growth and which ones aren't likely to recover from their financial losses.
PROBLEM / SOLUTION
The company wasn't prepared for the competitive online travel market. However, the company is now focused on becoming more profitable by offering special corporate discounts and upgrading vacation accommodations.
POTENTIAL
Good. This is an investment opportunity that you should consider looking into. This company has an excellent reputation for offering high quality services. There's evidence that its new business plans are already causing an increase in profits.
PROBLEM / SOLUTION
The earnings reports for the last quarter showed that this company didn't reach its financial goal. The company is now trying to raise money to buy another health services company.
POTENTIAL
Bad investment choice. Take my advice--don't even think about this one! This company is under pressure to bring in a solid corporate investor to finance the purchase. Shareholders are losing confidence and stock prices are falling quickly.
PROBLEM / SOLUTION
Sales fell across the board and members of the management team stepped down. The company is still trying to turn the business around by reducing costs and appealing to a younger market.
POTENTIAL
Wait and see. Investment in this company was a risk in the past, although it might be worth a shot in the near future. The new management has some fresh ideas for brand extension and a variety of new products that could yield profits within six months.
PROBLEM / SOLUTION
The Web site never launched.
POTENTIAL
Not enough information. There was a big advertising campaign and the company's situation looked hopeful. Information about what happened at the company is confidential, but I wouldn’t invest in a Web site that I couldn’t review.
This newspaper article is telling people about __________.
(A) how some Internet companies will become more successful next year
(B) new products and services that are available on the Internet
(C) Internet companies that might or might not be good investments
(D) the potential for opening new types of Internet companies
Egamesarefun.com __________.
(A) had confidential plans for an advertising campaign
(B) is the best Web site for finding information about games
(C) never had good earning reports to show its shareholders
(D) wasn't able to introduce its Web site to the public
ook at the phrase recover from in the article. Ms. Levin is providing information about some Internet companies that probably won't __________.
(A) understand their problems
(B) improve their financial situation
(C) welcome new management teams
(D) look over their last two quarter's losses
ook at the phrase looking into in the article. Ms. Levin thinks that vacatravel.com is a company that you should __________.
(A) visit to see if you want to work there
(B) invest money in now before the profits increase
(C) study to find out if it's a good investment
(D) consider using for their special services
ook at the phrase raise money in the article. Healthyadvice.com is trying to __________ money.
(A) save more
(B) find a way to get more
(C) spend additional
(D) loan some
Look at the phrase appealing to in the article. Ecosmetics.com is trying to reduce costs and __________ a younger market.
(A) interest
(B) return to
(C) estimate
(D) launch
1. B
2. D
3. B
4. D
5. A
6. A
1. D
2. A
3. D
4. C
5. B
6. D
1.C
2.B
3.D
4.A
5.C
6.B