Mastering TOEIC Reading: Essential Practice for Regulatory Compliance

The TOEIC Reading section plays a crucial role in assessing your English proficiency, especially when it comes to understanding business-related texts. For those dealing with steps for applying for a business license, mastering this section is particularly important. Let’s dive into some practice questions focused on regulatory compliance to help you prepare for the exam.

Part 1: Incomplete Sentences

In this section, you’ll encounter 30 incomplete sentences. Choose the word or phrase that best completes each sentence.

1. The company must __ with all local regulations before launching its new product.
   A) comply
   B) complete
   C) compile
   D) compose

2. The regulatory framework __ several key areas of business operations.
   A) encompasses
   B) entails
   C) encloses
   D) endorses

3. Failure to __ the necessary permits may result in hefty fines.
   A) obtain
   B) maintain
   C) retain
   D) sustain

4. The compliance officer is responsible for __ that all employees follow the company’s code of conduct.
   A) ensuring
   B) insuring
   C) assuring
   D) securing

5. The new legislation __ stricter guidelines for environmental protection.
   A) imposes
   B) proposes
   C) supposes
   D) exposes

6. Companies must __ detailed records of their financial transactions for auditing purposes.
   A) keep
   B) hold
   C) maintain
   D) retain

7. The regulatory body conducts __ inspections to ensure compliance with safety standards.
   A) routine
   B) casual
   C) sporadic
   D) infrequent

8. Non-compliance with tax regulations can lead to severe __.
   A) penalties
   B) rewards
   C) incentives
   D) bonuses

9. The company’s legal team is working to __ any potential conflicts with existing regulations.
   A) mitigate
   B) aggravate
   C) stimulate
   D) propagate

10. All employees must undergo __ training on the latest compliance procedures.
    A) mandatory
    B) optional
    C) voluntary
    D) discretionary

11. The government has __ new regulations to address cybersecurity concerns.
    A) implemented
    B) implicated
    C) implied
    D) impeded

12. Businesses are required to __ annual reports detailing their compliance efforts.
    A) submit
    B) subject
    C) subdue
    D) sublease

13. The company’s __ to regulatory requirements has improved its reputation in the industry.
    A) adherence
    B) adhesion
    C) admonition
    D) admission

14. Regular audits help __ potential compliance issues before they become serious problems.
    A) identify
    B) intensify
    C) indemnify
    D) indulge

15. The regulatory landscape is constantly __, requiring businesses to stay informed and adaptable.
    A) evolving
    B) revolving
    C) involving
    D) devolving

16. Companies must __ their policies to align with the updated regulatory guidelines.
    A) revise
    B) reverse
    C) revive
    D) revere

17. Failure to __ with anti-money laundering regulations can result in criminal charges.
    A) comply
    B) reply
    C) apply
    D) imply

18. The new compliance software helps __ the risk of human error in regulatory reporting.
    A) minimize
    B) maximize
    C) scrutinize
    D) criticize

19. Small businesses often struggle to __ the costs associated with regulatory compliance.
    A) manage
    B) maneuver
    C) manipulate
    D) mandate

20. The company’s board of directors is ultimately __ for ensuring regulatory compliance.
    A) responsible
    B) responsive
    C) respectable
    D) respective

21. Regulatory bodies may impose __ on companies that violate compliance standards.
    A) sanctions
    B) sanctions
    C) sanctuaries
    D) sanctities

22. The new compliance management system aims to __ the company’s ability to meet regulatory requirements.
    A) enhance
    B) enact
    C) encroach
    D) endorse

23. Companies must __ their employees about the importance of adhering to regulatory guidelines.
    A) educate
    B) elucidate
    C) eradicate
    D) elaborate

24. The regulatory agency conducts __ reviews to assess the effectiveness of compliance programs.
    A) periodic
    B) sporadic
    C) chaotic
    D) erratic

25. Businesses must __ proper documentation to demonstrate their compliance efforts.
    A) maintain
    B) sustain
    C) obtain
    D) detain

26. The company’s __ to regulatory standards has helped it avoid legal complications.
    A) commitment
    B) commission
    C) commiseration
    D) commutation

27. Regulatory compliance often requires significant __ in terms of time and resources.
    A) investment
    B) involvement
    C) invocation
    D) invigoration

28. The compliance team works diligently to __ any potential regulatory violations.
    A) prevent
    B) provoke
    C) promote
    D) propel

29. Companies must __ their employees on the latest regulatory changes and their implications.
    A) brief
    B) debrief
    C) rebrief
    D) unbrief

30. Failure to __ with industry-specific regulations can result in the loss of operating licenses.
    A) conform
    B) confirm
    C) confront
    D) confound

Regulatory compliance checklist for business operations

Part 2: Text Completion

In this section, you’ll find 4 short texts with 4 blanks each. Choose the best word or phrase to fill in each blank.

Text 1

Regulatory compliance is a critical aspect of business operations, particularly when it comes to (1)__ new ventures. Companies must navigate a complex (2)__ of rules and regulations to ensure they operate within legal boundaries. This process often involves (3)__ various permits and licenses, as well as implementing internal policies that align with regulatory requirements. Failure to adhere to these regulations can result in severe (4)__, including fines, legal action, and damage to the company’s reputation.

1. A) launching B) avoiding C) ignoring D) delaying
2. A) web B) system C) network D) hierarchy
3. A) obtaining B) avoiding C) rejecting D) neglecting
4. A) rewards B) benefits C) consequences D) advantages

Text 2

Effective compliance management requires a (5)__ approach that involves all levels of an organization. Companies often designate a (6)__ officer who is responsible for overseeing compliance efforts and ensuring that the business adheres to all relevant laws and regulations. This individual works closely with various departments to (7)__ potential risks and implement appropriate controls. Regular (8)__ and training sessions are essential to keep employees informed about their compliance obligations and any changes in the regulatory landscape.

5. A) comprehensive B) superficial C) minimal D) partial
6. A) compliance B) avoidance C) evasion D) resistance
7. A) identify B) ignore C) intensify D) induce
8. A) parties B) audits C) celebrations D) vacations

Text 3

The (9)__ of regulatory compliance can be significant, particularly for small businesses. However, the costs of non-compliance are often far greater. Companies must (10)__ resources to develop and maintain effective compliance programs, which may include investing in specialized software, hiring additional staff, or engaging external consultants. Despite these challenges, a strong commitment to compliance can provide numerous (11)__, such as improved operational efficiency, enhanced stakeholder trust, and a competitive advantage in the marketplace. Moreover, it can help businesses (12)__ potential legal issues before they escalate into more serious problems.

9. A) benefits B) advantages C) rewards D) costs
10. A) allocate B) withhold C) disregard D) minimize
11. A) drawbacks B) obstacles C) benefits D) hindrances
12. A) ignore B) escalate C) avoid D) provoke

Text 4

In today’s rapidly changing business environment, staying (13)__ of regulatory requirements is an ongoing challenge. Companies must continuously (14)__ their compliance strategies to address new laws, evolving industry standards, and emerging risks. This often requires a proactive approach, including regular risk assessments, policy reviews, and engagement with regulatory bodies. By fostering a culture of compliance throughout the organization, businesses can better (15)__ themselves against regulatory violations and build a foundation for sustainable growth. Ultimately, effective compliance management is not just about avoiding penalties; it’s about (16)__ ethical business practices that benefit the company, its stakeholders, and society as a whole.

13. A) behind B) ahead C) beside D) beyond
14. A) abandon B) maintain C) neglect D) adapt
15. A) expose B) subject C) protect D) submit
16. A) promoting B) preventing C) prohibiting D) postponing

Regulatory compliance process flowchart

Answer Key

Part 1: Incomplete Sentences

1. A) comply
2. A) encompasses
3. A) obtain
4. A) ensuring
5. A) imposes
6. C) maintain
7. A) routine
8. A) penalties
9. A) mitigate
10. A) mandatory
11. A) implemented
12. A) submit
13. A) adherence
14. A) identify
15. A) evolving
16. A) revise
17. A) comply
18. A) minimize
19. A) manage
20. A) responsible
21. A) sanctions
22. A) enhance
23. A) educate
24. A) periodic
25. A) maintain
26. A) commitment
27. A) investment
28. A) prevent
29. A) brief
30. A) conform

Part 2: Text Completion

Text 1:

1. A) launching
2. A) web
3. A) obtaining
4. C) consequences

Text 2:
5. A) comprehensive
6. A) compliance
7. A) identify
8. B) audits

Text 3:
9. D) costs
10. A) allocate
11. C) benefits
12. C) avoid

Text 4:
13. B) ahead
14. D) adapt
15. C) protect
16. A) promoting

These practice questions and texts focus on various aspects of regulatory compliance, including the steps for applying for a business license. By familiarizing yourself with this vocabulary and context, you’ll be better prepared to tackle similar questions in the actual TOEIC Reading test. Remember to pay close attention to the specific wording and context of each question, as this will often guide you to the correct answer.