CAEL Startup 3

Question 1

In academic English, a 'unicorn' company is defined as:

Accepted Answer

A privately held startup valued at over one billion dollars

Answer

The term 'unicorn' describes a privately held startup that has reached a valuation of at least $1 billion.

Question 2

Read this sentence: 'The founders sought to disrupt the traditional taxi industry.' In academic writing, 'disrupt' most closely means:

Accepted Answer

To radically transform an industry using innovative solutions

Answer

In business and academic contexts, 'disrupt' means to fundamentally change an established industry through innovation.

Question 3

Which of the following sentences demonstrates the most appropriate academic register for a CAEL writing task on startup ecosystems?

Accepted Answer

Startups are enterprises characterized by high uncertainty and significant growth potential.

Answer

Academic register requires formal vocabulary and precise descriptions, as demonstrated in option B.

Question 4

A CAEL passage discusses 'equity dilution.' What does this term mean for startup founders?

Accepted Answer

A reduction in a founder's ownership stake due to new shares being issued to investors

Answer

Equity dilution occurs when new shares are issued to investors, reducing the percentage of the company owned by existing shareholders.

Question 5

In a listening passage, a speaker says a startup is in the 'ideation phase.' What stage does this describe?

Accepted Answer

The early stage when entrepreneurs generate and refine business concepts

Answer

The ideation phase is the creative, early stage where founders brainstorm and develop their core business idea.

CAEL - Canadian Academic English Language Practice Test