TMM · MFB004 · Lesson 4

Lesson 4

Learning Objectives

By the end of this lesson you will be able to…

Understanding business finance vocabulary and the passive voice is essential for reading corporate reports, writing formal summaries, and discussing financial performance with clarity and confidence. This lesson introduces the language of corporate finance — revenue, margins, forecasts, and stakeholders — and pairs it with the grammar most commonly found in financial writing.

1
Use 10 key B2 business finance terms: revenue, profit margin, turnover, forecast, fiscal year, overhead, stakeholder, expenditure, break-even, quarterly report
2
Understand and produce the passive voice in present, past, future, and modal forms
3
Read and analyse the case study A Difficult Quarter about Meridian Group's financial performance
4
Listen to a real news report about corporate earnings and retail sales and answer comprehension questions
5
Write professional business documents including executive summaries, analyst commentaries, and cost proposals
6
Complete 290+ practice items across vocabulary, grammar, reading, listening, and review exercises
7
Integrate vocabulary and grammar into spoken and written production at a professional level

Warm-up

Discussion Questions

Discuss these questions with a partner or think about your answers before starting the lesson.

Business Finance — 5 Discussion Questions

When a company publishes its financial results, what kind of information do you think investors and employees want to see? What numbers matter most?
Think about a company you know well — perhaps one you work for, buy from, or follow in the news. Has it had a good or bad year recently? What happened?
What is the difference between a company making a lot of money and a company being profitable? Can a company have high sales but still lose money? How?
When you read about a company in the news, do you usually see sentences like "the report was published" or "someone published the report"? Why do you think one form is more common than the other?
If you were asked to present your team's or company's financial results to senior management, what challenges would you face in English? What vocabulary or structures would you need?

💡 These questions activate the vocabulary and grammar you will study today. There are no wrong answers — the goal is to start thinking about the topic.

Vocabulary

💡 Tip: Click the 📌 pin icon on any word to save it to your personal Vocab list. Every word in this lesson is already added to your list — pin the ones you want to remember most.

10 Key Terms

Study the cards first — click to reveal the definition — then work through all five exercises below.

Today's 10 Terms — Click to Reveal

Revenue

Noun (uncountable)

The total income generated by a business before any costs are deducted.

"Revenue increased by 8% this quarter, driven by strong demand across all regions."

Tap to reveal →

Profit margin

Noun (countable)

The percentage of revenue remaining after all costs have been deducted — shows how efficient a business is at generating profit.

"Despite strong sales, the profit margin fell to 11% due to rising costs."

Tap to reveal →

Turnover

Noun (uncountable)

The total value of sales made by a business in a given period. (Also: the rate at which staff leave an organisation.)

"Annual turnover reached $44 million, reflecting higher volumes across all divisions."

Tap to reveal →

Forecast

Noun / Verb

A financial prediction of future revenue, costs, or performance based on data and analysis.

"The revised forecast projects growth of 12% in the next fiscal year."

Tap to reveal →

Fiscal year

Noun (countable)

A 12-month financial accounting period used for budgeting and reporting — it may not follow the calendar year.

"Our fiscal year runs from April to March, not January to December."

Tap to reveal →

Overhead

Noun (countable / uncountable)

Ongoing fixed costs a business must pay regardless of output — such as rent, salaries, and utilities.

"High overhead is eroding the margin — we need to review all fixed costs."

Tap to reveal →

Stakeholder

Noun (countable)

Any person or group with an interest in a company's financial performance — including investors, employees, and customers.

"All stakeholders received a copy of the annual financial results."

Tap to reveal →

Expenditure

Noun (uncountable)

Money spent by an organisation — a formal term covering all types of outgoing costs.

"Capital expenditure exceeded the budget by $3 million this year."

Tap to reveal →

Break-even

Noun / Adjective

The point at which revenue exactly covers costs — neither profit nor loss is made.

"The new product line reached break-even after just eight months."

Tap to reveal →

Quarterly report

Noun (countable)

A formal financial document published every three months by a company, summarising performance against targets.

"The quarterly report was well received by investors and the share price rose."

Tap to reveal →

📊 Questions 1–6 in each exercise = B1+ level. Questions 7–10 = B2 level with more nuanced distinctions.

V1 — Vocabulary Matching · Match Term to Definition

Click a term on the left, then click its matching definition on the right. 10 pairs.

Revenue

Profit margin

Turnover

Forecast

Fiscal year

Overhead

Stakeholder

Expenditure

Break-even

Quarterly report

A person or group with a financial interest in a company

Total sales value in a given period

The point at which income exactly covers costs

Total income before any costs are deducted

A 12-month accounting period for financial reporting

All money spent by an organisation

A data-driven prediction of future financial performance

Ongoing fixed costs such as rent, salaries, and utilities

The percentage of revenue kept as profit after costs

A formal financial summary published every three months

0 / 10 matched

V2 — Gap Fill · Click a word, then click the gap

Select a word from the bank below, then click the gap in the sentence.

Word Bank

forecast stakeholders overhead revenue quarterly report break-even expenditure turnover profit margin fiscal year

1.Total ___ for Q3 was $42 million — a 6% increase on the previous year.

2.The ___ fell from 18% to 11% because of rising costs.

3.The company's annual ___ exceeded $200 million for the first time.

4.Analysts are updating their ___ for next quarter based on the latest data.

5.The ___ ends in March, not December, so the accounts are not yet closed.

6.Rent, insurance, and salaries are the biggest components of our ___ costs.

7.The board presented the results to ___ at a meeting on Thursday.

8.Capital ___ exceeded the original budget by $3.2 million.

9.The company has not yet reached ___ on its new operations.

10.The ___ was published last week and distributed to all investors.

Click a word, then click a gap to begin.

V3 — Multiple Choice · Vocabulary Knowledge

Choose the best answer. Questions mix vocabulary meaning with usage.

1.Which word means "the total income a business earns before any costs are deducted"?

Profit margin

Revenue

Turnover

2.A company reaches ______ when its revenue exactly covers its costs.

break-even

surplus

liquidity

3.Which term describes ongoing fixed costs like rent, salaries, and utilities?

Expenditure

Overhead

Deficit

4.The company's ______ runs from April to March, not January to December.

quarterly report

fiscal year

forecast

5.A ______ is anyone with a financial or personal interest in a company's performance.

Shareholder

Stakeholder

Creditor

6.The company's total sales value this year was $44 million. This figure is called the company's ______.

turnover

revenue

expenditure

7.The revised ______ projects growth of 12% in the next fiscal year.

forecast

quarterly report

overhead

8."Capital ______" refers specifically to spending on long-term assets like equipment and property.

overhead

expenditure

turnover

9.Despite strong sales, the ______ was only 11% because costs were too high.

profit margin

revenue

break-even

10.The ______ is published every three months and outlines performance against targets.

fiscal year

forecast

quarterly report

V4 — True or False? · Vocabulary Knowledge Check

Is the statement true or false? Click TRUE or FALSE for immediate feedback.

1.Revenue is the total income a business earns before any costs are deducted.

TRUE — Revenue = total income before costs. It is also called the "top line."

2.Profit margin is the total amount of money a company spends.

FALSE — Profit margin is the PERCENTAGE of revenue kept after costs. Total spending is called expenditure.

3.Turnover and revenue are related but not always identical in meaning.

TRUE — Turnover usually refers to total sales value. It can also refer to staff replacement rate.

4.A forecast looks backward at past financial performance.

FALSE — A forecast looks FORWARD — it is a prediction of future financial performance.

5.A fiscal year always runs from January to December.

FALSE — A fiscal year is any 12-month accounting period. Many use April–March or October–September.

6.Overhead costs include rent, utilities, and salaries — costs that remain regardless of output.

TRUE — Overhead = fixed ongoing costs that must be paid whether or not the company produces anything.

7.A stakeholder must be a shareholder — someone who owns shares in the company.

FALSE — A stakeholder is anyone with an INTEREST in the company: employees, customers, suppliers, investors, regulators.

8.Expenditure means all the money a company spends.

TRUE — Expenditure = total spending. Capital expenditure specifically refers to spending on long-term assets.

9.Break-even is the point where a company's revenue exceeds its costs and it starts making a profit.

FALSE — Break-even is where revenue EXACTLY EQUALS costs. No profit, no loss. Profit begins AFTER break-even.

10.A quarterly report covers a period of three months.

TRUE — Quarterly = every 3 months. There are 4 quarters in a fiscal year (Q1, Q2, Q3, Q4).

V5 — Error Correction · Find the vocabulary mistake

Each sentence has ONE vocabulary mistake. Click "Show Error" to underline it, then "Show Answer" to see the correction.

1.The company's overhead for Q3 was $42 million — a 6% increase on last year.

'overhead' → 'revenue' — Revenue is total income. Overhead refers to fixed costs like rent and salaries.

2.The expenditure fell from 18% to 11% because costs rose sharply.

'expenditure' → 'profit margin' — A profit margin is expressed as a percentage. Expenditure is total spending in monetary terms.

3.Analysts are updating their quarterly report for next year based on the latest data.

'quarterly report' → 'forecast' — A forecast is a prediction about the future. A quarterly report looks at what already happened.

4.The break-even runs from April to March, not January to December.

'break-even' → 'fiscal year' — A fiscal year is a 12-month accounting period. Break-even is where revenue equals costs.

5.Rent, insurance, and electricity are the company's largest revenue costs.

'revenue' → 'overhead' — Overhead costs are fixed ongoing expenses. Revenue is income, not a type of cost.

6.The forecast was presented to all overhead at the board meeting on Thursday.

'overhead' → 'stakeholders' — Stakeholders are people with an interest in the company. Overhead refers to fixed costs.

7.Capital turnover exceeded the original budget by $3.2 million this quarter.

'turnover' → 'expenditure' — Capital expenditure is spending on long-term assets. Turnover refers to total sales value.

8.The company has not yet reached its profit margin on the new operations.

'profit margin' → 'break-even' — Break-even is the point where revenue covers costs. Profit margin is a percentage, not a point to "reach."

9.The stakeholder for next quarter was $180 million — well above expectations.

'stakeholder' → 'revenue' — Revenue is income measured in currency. A stakeholder is a person, not a financial figure.

10.The fiscal year showed a sharp decline in customer numbers and overall forecast.

'forecast' → 'turnover' — Turnover here means total sales/customer activity. A forecast is a prediction, not a measure of past performance.

Grammar

The Passive Voice

In business and financial writing, the passive voice is preferred. Study the explanation, then complete all five exercises.

Subject + BE (conjugated) + Past Participle

[+ by + agent] — often omitted when the agent is obvious or unimportant

⚠ Why passive in business? Financial reports, memos, and corporate communication focus on decisions and outcomes, not individual actors. "The budget was approved" sounds more objective than "The board approved the budget." Both are correct — but the passive creates a more formal, impersonal tone.

Four Key Tenses in Financial Passive

Present

Budgets are reviewed by the board every quarter.

Past

The annual report was published last Friday.

Future

The forecasts will be presented to stakeholders next month.

Modal

The deficit must be addressed before the fiscal year ends.

Active vs Passive — Compare

Active

The CFO published the revised revenue forecast this morning.

Passive

The revised revenue forecast was published this morning.

Active

The company must reduce overhead costs by at least 15%.

Passive

Overhead costs must be reduced by at least 15%.

Active

Analysts are forecasting the break-even point for Q2.

Passive

The break-even point is being forecast for Q2.

Common Mistakes

✗

"The report will present to the board." — Missing BE → "will be presented"

✗

"Overhead costs were been reduced." — Double BE → "were reduced"

✗

"Revenue have increased by 8%." — Revenue is uncountable → "has increased"

✓

"The quarterly report was published and distributed to all stakeholders."

📊 Questions 1–6 = B1+ level. Questions 7–10 = B2 level.

G1 — Gap Fill · Passive Voice Forms

Select the correct passive form from the word bank.

Word Bank

was approved will be presented are reviewed must be reduced was published has been submitted are being reviewed had been prepared were informed will be reached

1.The annual budget ___ by the board last Tuesday.

2.The quarterly report ___ to stakeholders next week.

3.All budgets ___ by the board every quarter.

4.Overhead costs ___ by at least 15% this quarter.

5.The annual report ___ last Friday and distributed to investors.

6.The revised expenditure plan ___ by the finance team this morning.

7.All expenditure records from last year ___ by the auditors right now.

8.The forecast ___ by the CFO before the board meeting started.

9.All stakeholders ___ of the revised forecast at the meeting.

10.The break-even point ___ within the next two fiscal quarters.

Click a word, then click a gap to begin.

G2 — Multiple Choice · Passive Voice

Choose the best answer.

1.The annual budget ______ by the board last Tuesday.

approved

was approved

has approved

2.The quarterly report ______ to all stakeholders next week.

presents

is presented

will be presented

3.All expenditure records ______ by the auditors right now.

were reviewed

are being reviewed

have reviewed

4.The forecast ______ by the CFO before the board meeting started.

was presenting

had been prepared

will present

5.Overhead costs ______ by at least 15% this quarter.

must be reduced

must reduce

must been reduced

6.Which sentence is correct passive voice?

The report will present to the board.

The report will be presented to the board.

The report were been presented.

7.The new expenditure plan ______ by the finance team this morning.

has been submitted

was submitting

have submitted

8.Revenue targets ______ by the CEO at every board meeting.

discusses

are discussed

is discussed

9.The passive voice ______ in business writing to create a more formal tone.

uses

is used

was using

10.The profit margin figures from Q3 ______ right now.

are being discussed

were discussed

discussing

G3 — True/False · Passive Voice Grammar Rules

Decide whether each statement about the passive voice is true or false.

1.The passive voice is formed with the verb BE + the past participle.

✓ TRUE — Subject + BE (conjugated) + Past Participle is the core passive structure.

2.In "The report will present to the board," the passive is correctly formed.

✗ FALSE — "will present" is active. Correct passive: "will be presented."

3.The agent (by + person) is always required in a passive sentence.

✗ FALSE — The agent is often omitted when obvious or unimportant.

4."Revenue has increased" is an example of the passive voice.

✗ FALSE — "Revenue has increased" is active. Passive would be: "Revenue has been increased."

5.The passive is common in financial writing because it creates a formal, objective tone.

✓ TRUE — Passive focuses on what happened, not who did it.

6."The budget was approved" and "The board approved the budget" mean the same thing.

✓ TRUE — Same meaning, different focus. Passive focuses on the budget; active focuses on the board.

7.Modal passive is formed: MODAL + BEEN + past participle.

✗ FALSE — Modal passive = MODAL + BE + past participle. "Must be reduced," NOT "must been reduced."

8.Present continuous passive is formed: AM/IS/ARE + BEING + past participle.

✓ TRUE — "The records are being reviewed" = present continuous passive.

9."Revenue have increased" is correct because revenue refers to multiple income streams.

✗ FALSE — Revenue is uncountable and takes a singular verb: "Revenue has increased."

10.In a passive sentence, the agent can be introduced with "by" when it adds important information.

✓ TRUE — "The report was presented by the CFO" — the agent adds useful information here.

G4 — Error Correction · Find & Fix

Each sentence contains ONE error. Click "Show Error" to underline it, then "Show Answer" to check.

1.The annual budget was approved by the board of directions last week.

'directions' → 'directors' — A board of directors governs a company.

2.Revenue have increased by 8% compared to the same quarter last year.

'have' → 'has' — Revenue is uncountable: "Revenue has increased."

3.A low profit margin signals that a company spends too many to generate each unit of income.

'many' → 'much' — Money is uncountable: "spends too much."

4.The quarterly report will present to all stakeholders next week.

'will present' → 'will be presented' — Future passive requires WILL + BE + past participle.

5.Overhead costs were been significantly reduced following the restructuring.

'were been' → 'were' — Double BE is incorrect. Past simple passive = WAS/WERE + past participle.

6.The budget were approved by the board last Tuesday.

'were' → 'was' — "Budget" is singular → WAS, not WERE.

7.The results was presenting to stakeholders at last week's meeting.

'was presenting' → 'were presented' — "Results" is plural = WERE. Also needs past participle.

8.The expenditure records has been review by the auditors.

'review' → 'reviewed' — Passive requires the past participle: "has been reviewed."

9.Overhead costs must reduced by at least 15% this quarter.

'must reduced' → 'must be reduced' — Modal passive = MUST + BE + past participle. Missing "be".

10.The revised forecast is published by the CFO yesterday morning.

'is published' → 'was published' — "Yesterday" requires past simple passive.

G5 — Sentence Transformation · Active to Passive

Rewrite each active sentence in the passive voice. Omit the agent where unnecessary. Click "Show Answer" to check.

1.The board approved the annual budget last Tuesday.

→ "The annual budget was approved (by the board) last Tuesday."

2.The finance team will present the quarterly report to all stakeholders next week.

→ "The quarterly report will be presented to all stakeholders next week."

3.The accountants are reviewing all expenditure records from the last fiscal year.

→ "All expenditure records from the last fiscal year are being reviewed."

4.The CFO published the revised revenue forecast this morning.

→ "The revised revenue forecast was published this morning."

5.The company must reduce overhead costs by at least 15% this quarter.

→ "Overhead costs must be reduced by at least 15% this quarter."

6.The shareholders are discussing the profit margin figures from Q3.

→ "The profit margin figures from Q3 are being discussed."

7.Analysts predicted the company would reach break-even by March.

→ "It was predicted that the company would reach break-even by March."

8.The organisation has already submitted its tax returns for this fiscal year.

→ "Tax returns for this fiscal year have already been submitted."

9.The management team is preparing a new expenditure plan for the next fiscal year.

→ "A new expenditure plan is being prepared for the next fiscal year."

10.The external auditors should review all turnover figures before the report is finalised.

→ "All turnover figures should be reviewed before the report is finalised."

Reading

A Difficult Quarter

Read the case study carefully. Vocabulary is highlighted in green and passive voice in orange.

Meridian Group, a mid-sized logistics company with operations across Latin America and Europe, released its Q3 quarterly report last week. The results were mixed. Total revenue for the quarter was $42 million — a 6% increase on the same period last year. However, the profit margin had fallen from 18% to 11%, largely because overhead costs had risen sharply following the company's expansion into two new markets.

The report was presented to stakeholders at a board meeting on Thursday. The CFO explained that capital expenditure for the quarter had exceeded the original forecast by $3.2 million. A significant portion of this was attributed to higher-than-expected staffing and logistics costs in the new markets.

The company has not yet reached break-even on its new operations. Analysts are forecasting that the break-even point will be reached within the next two fiscal quarters, provided that turnover continues to grow and overhead costs are brought under control.

The board was told that a revised expenditure plan would be submitted within three weeks. Several stakeholders expressed concern about the declining margin, but acknowledged that growth strategies of this kind are typically not profitable in the short term. The CEO closed the meeting by reminding the board that long-term revenue targets remain on track.

Key: Lesson 4 vocabulary Passive voice structures

R1 — Comprehension · Multiple Choice

Choose the best answer based on the case study above.

1.What type of company is Meridian Group?

A technology startup

A mid-sized logistics company

A multinational bank

2.What was Meridian Group's total revenue in Q3?

$42 million

$3.2 million

$200 million

3.Why did the profit margin fall?

Revenue declined sharply.

Overhead costs rose after the company expanded.

The company laid off too many staff.

4.By how much did capital expenditure exceed the forecast?

6%

18%

$3.2 million

5.When do analysts expect Meridian to reach break-even?

Within two fiscal quarters

Within three weeks

It has already been reached

6.Where was the Q3 report presented?

By email to all employees

At a board meeting on Thursday

At a press conference

7.What was the main cause of higher expenditure in the new markets?

Technology investment

Staffing and logistics costs

Marketing campaigns

8.How did stakeholders react to the declining margin?

They were entirely positive.

They were concerned but understood growth takes time.

They demanded the CEO resign.

9.What did the CEO say about long-term targets?

They need to be revised downward.

They remain on track.

They have already been exceeded.

10.What document was promised within three weeks?

A new quarterly report

A revised expenditure plan

A new revenue forecast

R2 — True or False · Reading Comprehension

1.Meridian Group's revenue in Q3 was lower than the same quarter the previous year.

✗ FALSE — Revenue was $42 million, a 6% increase on the same period last year.

2.The profit margin fell because overhead costs rose after the company expanded.

✓ TRUE — The margin fell from 18% to 11% "largely because overhead costs had risen sharply."

3.Capital expenditure was exactly in line with the original forecast.

✗ FALSE — Expenditure exceeded the forecast by $3.2 million.

4.The company's new operations have already reached break-even.

✗ FALSE — "The company has not yet reached break-even."

5.Analysts believe break-even will be reached within two fiscal quarters if costs are controlled.

✓ TRUE — "Within the next two fiscal quarters, provided turnover continues to grow and overhead costs are brought under control."

6.The quarterly report was presented to stakeholders by email.

✗ FALSE — The report was presented "at a board meeting on Thursday."

7.Meridian Group operates in both Latin America and Europe.

✓ TRUE — "Operations across Latin America and Europe."

8.Stakeholders were not concerned about the declining profit margin.

✗ FALSE — "Several stakeholders expressed concern about the declining margin."

9.The text uses multiple passive voice sentences to create a formal, objective tone.

✓ TRUE — Examples: "was presented," "was attributed," "will be reached," "was told," "be submitted."

10.The CEO said that long-term revenue targets are no longer achievable.

✗ FALSE — The CEO said "long-term revenue targets remain on track."

R3 — Gap Fill from Text · Complete the summary

Fill each gap with a word or phrase from the case study.

Word Bank

quarterly report revenue profit margin overhead stakeholders expenditure forecast break-even turnover fiscal

1.Meridian Group released its Q3 ___ last week.

2.Total ___ for the quarter was $42 million.

3.The ___ had fallen from 18% to 11%.

4.This was because ___ costs had risen sharply.

5.The report was presented to ___ at a board meeting.

6.Capital ___ exceeded the original forecast by $3.2 million.

7.The company has not yet reached ___ on its new operations.

8.Break-even is expected within the next two ___ quarters.

9.This depends on ___ continuing to grow.

10.Expenditure exceeded the original ___ by $3.2 million.

Click a word, then click a gap to begin.

R4 — Vocabulary in Context · MCQ

Based on how words are used in the case study, choose the best answer.

1.In the text, "revenue" most closely means:

total income before costs

money remaining after expenses

outstanding debts

2."The profit margin had fallen from 18% to 11%." What does "fallen" suggest about the company's efficiency?

The company became more efficient.

The company is keeping less profit per unit of revenue.

The company is losing money on every sale.

3.In the text, "overhead" refers to:

variable costs like sales commission

fixed costs like rent and staffing

investment in new equipment

4."Capital expenditure exceeded the forecast by $3.2 million." This means:

The company spent $3.2M more than planned.

The company saved $3.2M.

Expenditure was $3.2M lower than last year.

5."Stakeholders" in this text includes:

only shareholders who own company stock

anyone with a financial or professional interest in the company

customers only

6."Break-even" in the case study means the point where:

the company starts making large profits

revenue exactly covers all costs

the company stops operating

7."Fiscal quarters" in the text refers to:

three-month periods within the fiscal year

25-cent coins used in finance

January–March, April–June, etc.

8.The phrase "was attributed to" (passive) in the text means:

was officially blamed on someone

was considered to be caused by

was solved by

9.When the CEO says "revenue targets remain on track," this is:

a reassurance that long-term goals are achievable

a statement that targets have been exceeded

a warning that targets will be missed

10.The overall tone of this case study is:

optimistic — everything is going well

balanced — acknowledging both positives and concerns

alarming — the company is in serious trouble

R5 — Summary Completion · Write your answers

Complete each sentence with information from the case study. Then check with the model answer.

1.Meridian Group is a ______ company operating in ______ and ______.

…a mid-sized logistics company operating in Latin America and Europe.

2.Q3 revenue was $______ million, representing a ______% increase.

Q3 revenue was $42 million, representing a 6% increase.

3.The profit margin fell from ______% to ______% because of ______.

…from 18% to 11% because of rising overhead costs following the company's expansion.

4.Capital expenditure exceeded the forecast by $______ million due to ______.

…by $3.2 million due to higher-than-expected staffing and logistics costs in the new markets.

5.Break-even has/has not been reached. Analysts forecast it within ______.

Break-even has not been reached. Analysts forecast it within the next two fiscal quarters.

6.Break-even depends on two conditions: ______ and ______.

…turnover continuing to grow and overhead costs being brought under control.

7.A revised ______ plan will be submitted within ______.

A revised expenditure plan will be submitted within three weeks.

8.Stakeholders reacted with ______ but acknowledged that ______.

…with concern about the declining margin but acknowledged that growth strategies are typically not profitable in the short term.

9.The CEO said that long-term ______ targets ______.

…long-term revenue targets remain on track.

10.Name three passive voice structures from the text.

"was presented," "was attributed," "will be reached," "are brought," "was told," "be submitted" — any three of these.

Listening

Corporate Earnings Report

Listen to the news report, then complete all five exercises below.

Walmart Q2 Earnings Beat Expectations

Source: CNN Business · Authentic news report

⏱ 1:13

Walmart's second quarter sales and profit beat expectations — another sign that Americans are continuing to spend on household items, or at least sniff out deals. In its earnings report on Thursday, Walmart said strong demand for its low-priced groceries and health and wellness products helped power sales past Wall Street's estimates. The country's largest retailer also raised its full-year forecast.

Walmart's earnings come the same week a report from the Commerce Department showed retail sales for July blew past estimates, suggesting the economy continued to expand last month despite more than a year of interest rate hikes to bring down inflation.

Walmart's Chief Financial Officer, however, did sound a note of caution, saying Americans may still see a hit to their spending power in the coming year to 18 months, due to rising energy costs and the resumption of student loan payments in October.

Earlier this week, rival Target beat quarterly profit estimates, but in contrast to Walmart, cut its annual forecast. Shares of Walmart, which rose in pre-market trading, were down more than one percent Thursday morning.

🔗 Source: CNN Business · Adapted for educational use

🎧 Answer the questions below based on what you heard. You may replay the audio or reveal the transcript if needed.

L1 — Comprehension · Multiple Choice

1.What was the main topic of the news report?

Walmart launching a new product line

Walmart's quarterly earnings and financial performance

Walmart closing stores across the US

2.How did Walmart's revenue compare to analyst expectations?

It was higher than expected

It was lower than forecast

It exactly matched the forecast

3.What did Walmart do with its full-year forecast?

Cut it

Raised it

Kept it unchanged

4.What drove strong performance at Walmart?

Selling off unprofitable stores

Strong consumer spending on groceries and essentials

Government subsidies

5.What did the CFO warn about?

Possible decline in consumer spending power

Imminent store closures

Supply chain disruptions

6.What factors could hurt consumer spending according to the report?

Rising energy costs and student loan payments

Higher taxes

Mass layoffs

7.How did Target's results compare to Walmart's?

Both companies raised forecasts

Target beat profit estimates but cut its forecast

Target missed all expectations

8.What happened to Walmart shares on Thursday morning?

They rose significantly

They fell more than one percent

They remained unchanged

9.What did Commerce Department data show about retail sales?

They were stronger than expected

They declined sharply

They were exactly as predicted

10.The report mentions interest rate hikes. Their purpose was to:

increase consumer spending

bring down inflation

create more jobs

L2 — True or False · Listening Comprehension

1.Walmart's Q2 sales and profit were below expectations.

✗ FALSE — Sales and profit beat expectations.

2.Strong demand for low-priced groceries helped drive Walmart's sales.

✓ TRUE — Strong demand for low-priced groceries and health products helped power sales.

3.Walmart lowered its full-year forecast after the results.

✗ FALSE — Walmart raised its full-year forecast. Target cut its forecast.

4.Retail sales data showed weaker-than-expected results for July.

✗ FALSE — Retail sales "blew past estimates" — stronger than expected.

5.Interest rate hikes were intended to reduce inflation.

✓ TRUE — "More than a year of interest rate hikes to bring down inflation."

6.Walmart's CFO was entirely optimistic about consumer spending.

✗ FALSE — The CFO "sounded a note of caution" about spending power.

7.Rising energy costs and student loan payments could affect spending power.

✓ TRUE — The CFO warned about "a hit to spending power" from these factors.

8.Target, like Walmart, raised its annual forecast.

✗ FALSE — Target cut its annual forecast. "In contrast to Walmart."

9.Walmart shares were trading higher on Thursday morning.

✗ FALSE — Shares were "down more than one percent Thursday morning."

10.The word "forecast" is used to describe predictions about future financial performance.

✓ TRUE — Both Walmart and Target have a forecast. Walmart raised theirs; Target cut theirs.

L3 — Gap Fill from Transcript

Complete each sentence with a word from the transcript.

Word Bank

beat forecast groceries inflation caution energy student loan quarterly cut retailer

1.Walmart's second quarter sales and profit ___ expectations.

2.Strong demand for low-priced ___ helped power sales.

3.The country's largest ___ also raised its full-year forecast.

4.Interest rate hikes were intended to bring down ___.

5.The CFO sounded a note of ___ about consumer spending.

6.Rising ___ costs could affect spending power.

7.The resumption of ___ payments in October is a concern.

8.Target beat ___ profit estimates.

9.Target, in contrast to Walmart, ___ its annual forecast.

10.Walmart raised its full-year ___ based on strong Q2 results.

Click a word, then click a gap to begin.

L4 — Analysis · Multiple Choice

Think critically about the report. Choose the best answer.

1.Which Lesson 4 vocabulary word best describes Walmart's situation?

Break-even

Revenue

Overhead

2.Why is passive voice common in financial news?

It creates an objective, formal tone

It is easier to write

It makes sentences shorter

3.How does Walmart's situation compare to Meridian Group's?

Both are nearly identical

Both had revenue growth but with different margin outcomes

Both companies are in decline

4."Blew past estimates" most closely means:

significantly exceeded

completely missed

exactly matched

5."Sound a note of caution" is an example of:

literal language

an idiomatic expression

technical financial jargon

6.Why might Walmart shares fall despite good results?

The good results may already have been priced in

Because the results were actually bad

Share prices are completely random

7.What does the contrast between Walmart and Target illustrate?

All retailers are performing equally poorly

Companies in the same sector can have different outlooks

Target is copying Walmart\'s strategy

8.The mention of student loan payments resuming suggests:

consumers may have less disposable income

student enrollment will decline

Walmart will benefit from selling student loans

9.If you were a stakeholder in Walmart, what question would be most relevant?

When will the CEO retire?

Can revenue growth be sustained if consumer spending weakens?

How many employees does Walmart have?

10.The overall tone of this news report is:

entirely positive

cautiously optimistic with reservations

deeply pessimistic

L5 — Reflection · Write & Compare

Write your answers, then compare with the model response.

1.Why is it important for companies like Walmart to publish quarterly reports?

Quarterly reports provide stakeholders with regular, transparent information about revenue, expenditure, and profit margins. They help investors make informed decisions and are often required by financial regulators.

2.How does Walmart's situation compare to Meridian Group's in the reading?

Both had revenue growth, but Meridian's profit margin fell while Walmart's performance exceeded forecasts. Meridian's stakeholders were concerned; Walmart's responded positively.

3.If you were a Walmart stakeholder, what questions would you ask after this report?

I would ask about the sustainability of revenue growth, whether overhead costs are being managed effectively, and what the forecast is for the next fiscal year.

4.Why is passive voice common in financial news reporting?

Passive voice creates an objective, formal tone. It focuses on outcomes — "revenue was reported," "forecasts were raised" — rather than on who did it.

5.What have you learnt about the language of corporate earnings from this listening?

Corporate earnings reports use specific vocabulary like forecast, quarterly, and profit. They use idiomatic expressions like "beat expectations" and "sound a note of caution." The passive voice helps create a professional, neutral tone.

Writing

Written Production

Complete all five writing tasks. Use today's vocabulary and the passive voice throughout.

✅ Checklist: Passive voice ✓ At least 2 vocabulary words per task ✓ Professional tone ✓

W1 — Board Meeting Summary Email · 100–130 words

You are the CFO. Write a short summary email of the Meridian Group Q3 results for stakeholders who missed the meeting.

At least 4 vocabulary items
At least 3 passive voice sentences
Professional, objective tone

Dear colleagues,

The Q3 quarterly report was presented to stakeholders at Thursday's board meeting. Total revenue was reported at $42 million — a 6% increase year on year. However, the profit margin fell to 11% because overhead costs were significantly higher than forecast following our expansion.

Capital expenditure exceeded the budget by $3.2 million. Break-even on the new operations has not yet been reached, but it is being forecast for the next two fiscal quarters. A revised expenditure plan will be submitted within three weeks.

Long-term revenue targets remain on track.

Best regards

W2 — Post-Meeting Follow-Up Email · 80–100 words

Write a follow-up email to stakeholders after the Meridian Group board meeting, summarising the key decisions and next steps.

At least 3 vocabulary items
Focus on decisions made and future actions
Use passive voice for formal reporting

Dear stakeholders,

Following Thursday's board meeting, I am writing to confirm the key outcomes. The Q3 results were discussed in detail. It was agreed that a revised expenditure plan would be submitted within three weeks. Overhead costs must be reduced to improve the profit margin, and break-even on the new operations is expected to be reached within two fiscal quarters. A further update will be provided at the next quarterly review.

Kind regards

W3 — Register Upgrade · Rewrite 10 informal sentences formally

Rewrite each informal sentence in a more formal, professional register using passive voice where appropriate.

1."We spent way more than we planned."

Expenditure significantly exceeded the original budget.

2."The boss showed everyone the numbers at the meeting."

The quarterly report was presented to stakeholders at the board meeting.

3."We haven't started making money on the new stuff yet."

Break-even has not yet been reached on the new operations.

4."They think we'll cover our costs in about six months."

Break-even is forecast to be reached within two fiscal quarters.

5."Our rent and bills are killing us."

Overhead costs have risen significantly and must be brought under control.

6."They're going to send us a new plan in three weeks."

A revised expenditure plan will be submitted within three weeks.

7."We made 42 million before taking anything out."

Total revenue for the quarter was reported at $42 million.

8."The percentage we keep after costs went down a lot."

The profit margin declined from 18% to 11% due to rising costs.

9."Everyone who cares about the company got the info."

All stakeholders were informed of the financial results.

10."We're still on track to hit our long-term goals."

Long-term revenue targets remain on track as previously forecast.

W4 — Error Correction · 10 sentences

Each sentence has ONE error. Rewrite the sentence correctly.

1."The quarterly report will present to all stakeholders next week."

"The quarterly report will be presented to all stakeholders next week." — Missing BE.

2."The company's overhead for Q3 was $42 million — a strong result."

"The company's revenue for Q3 was $42 million." — Overhead is costs, not income.

3."The budget were been approved by the board last Tuesday."

"The budget was approved…" — Double BE is wrong; budget is singular = WAS.

4."The break-even fell from 18% to 11% because of rising costs."

"The profit margin fell from 18% to 11%." — Break-even is a point, not a percentage.

5."Revenue have increased by 6% compared to last year."

"Revenue has increased…" — Revenue is uncountable/singular.

6."Capital forecast exceeded the original budget by $3.2 million."

"Capital expenditure exceeded…" — Capital expenditure = spending on assets.

7."The results was presenting to stakeholders at last week's meeting."

"The results were presented…" — Results is plural = WERE; needs past participle.

8."All turnover were invited to attend the annual general meeting."

"All stakeholders were invited…" — Stakeholders are people. Turnover is a figure.

9."Overhead costs must reduced by at least 15% this quarter."

"…must be reduced…" — Modal passive = MUST + BE + past participle.

10."The revenue runs from April to March in the United Kingdom."

"The fiscal year runs from April to March." — Revenue is income, not a time period.

W5 — Extended Report · 120–150 words

Write a short analyst report on Meridian Group's Q3 results. Give your professional analysis and recommendations.

At least 5 vocabulary items
At least 3 passive voice sentences
Balanced, analytical tone with clear recommendations

Meridian Group's Q3 results were mixed. Revenue was reported at $42 million, representing solid 6% growth. However, the profit margin was reduced to 11% because of rising overhead costs linked to expansion. Capital expenditure exceeded the forecast by $3.2 million — a figure that must be addressed in the revised plan.

Break-even on the new operations is being forecast for mid-next year, which is realistic provided that turnover continues to grow and costs are brought under control. The long-term outlook remains positive, but stakeholders should monitor expenditure closely in Q4. It is recommended that overhead costs be reviewed urgently and that a more detailed forecast be presented at the next board meeting.

Speaking

Speaking Practice

Five speaking tasks using today's vocabulary and the passive voice. Record your answer to each task — your teacher will listen and give feedback.

S1Your business week

Describe a typical week at your workplace or in your studies using at least four of today's vocabulary items: revenue, overhead, expenditure, forecast, quarterly report, stakeholder. Speak for 60–90 seconds.

🎙 Record your answer