The Role of Corporate Governance in Preventing Financial Crises - TOEFL Writing Academic Discussion Practice Test

In the TOEFL iBT^® exam, the writing test assesses a candidate's ability to write academically, where they are required to successfully integrate the knowledge into their work and organize the ideas coherently. The two Writing Sections, such as Academic Discussion and Integrated Writing, make up the Writing Section.

In this practice test on 'The Role of Corporate Governance in Preventing Financial Crises', you will hear a lecture on a certain subject from a professor in the Academic Discussion activity. After that, you'll take part in a conversation where you'll have to voice your opinion and provide solid justification for it

The best method to get ready for this part of the test is to practice on tests specifically made for the Academic Discussion format. Let's start your study with our "The Role of Corporate Governance in Preventing Financial Crises"-themed TOEFL Academic Discussion practice exam.

Writing Instructions:

• You will read a discussion related to an academic topic in class where your classmates have written their opinions on the said topic.
• You have 10 minutes to prepare and write your personal opinion on the academic topic. 
• Try to answer the question based on the discussion. You can also take ideas from the opinions posted by your classmates.
• There is no maximum word limit. However, an effective response should be a minimum of 100 words.
• Your response will be judged on the quality and clarity of your writing with well-supported reasons.

Instruction: Your professor is teaching a class on finance. Write a post responding to the professors question. In your response, you should

1. express and support your personal opinion
2. make a contribution to the discussion in your own words.

An effective response will contain at least 100 words. You have ten minutes to write.

Professor: In our next class, we will discuss the role of corporate governance in preventing financial crises. Corporate governance involves the systems and processes by which companies are directed and controlled. Do you believe that strong corporate governance can effectively prevent financial crises? Why or why not?

Jessica: I believe that strong systems and processes by which companies are directed and controlled can indeed prevent financial downturns. When companies have clear and responsible management methods, they are less likely to engage in risky financial behavior. For example, good oversight and ethical rules can stop dishonest actions that often lead to a lack of stability. Also, good governance can build investor trust, which is crucial for keeping market stability.

Jack: Although strong systems and processes by which companies are directed and controlled are important, I don't think they can completely prevent financial downturns. Financial markets are influenced by many things, like economic policies and global events, which are beyond the control of individual companies. Even with the best management methods, companies can still be affected by outside shocks. So, while these systems can reduce risks, they cannot entirely eliminate the possibility of financial downturns.

Before delving into sample responses, let us examine the parameters of a strong TOEFL score!

Sample Response for the Academic Discussion Writing Task on The Role of Corporate Governance in Preventing Financial Crises

Below are the two responses for the Academic Discussion Writing question where one of them showcases a mid-level proficiency while the other exhibits a high level of skills. Through examining the distinctions, you will acquire valuable insights into the components that lead to attaining an exceptional score in the Writing section.

Score 3 Response

I think strong corporate governance is important, but it can't fully prevent financial crises. Companies with good governance can avoid risky behaviors and build trust with investors. However, financial markets are affected by many things outside a company's control, like economic policies and global events. Even with the best governance, companies can still be hit by these external factors. For example, a company might have great management, but if there's a global recession, they will still suffer. So, while strong governance helps, it can't completely stop financial crises. (Word Count - 88)

Rater’s Comment

This response is adequate but lacks the depth and clarity of a higher-level response. The student correctly identifies that strong corporate governance can help companies avoid risky behaviors and build investor trust. However, the argument is not as well-developed or supported with specific examples as it could be. The response mentions external factors like economic policies and global events but does not elaborate on how these factors impact financial markets. Additionally, there are grammatical errors, such as "a company might have great management, but if there's a global recession, they will still suffer," where "they" should be "it" to maintain subject-verb agreement. Another error is the incorrect verb usage in "Even with the best governance, companies can still be hit by these external factors," where "hit" should be "affected." These errors, while not severely impacting comprehension, do detract from the overall quality of the response. The student makes a valid point but could improve by providing more detailed reasoning and examples.

Score 5 Response

While Jessica makes a compelling argument about the importance of strong corporate governance in preventing financial crises, I align more closely with Jack's perspective. Strong corporate governance can indeed mitigate risks by promoting transparency, accountability, and ethical behavior within companies. For instance, clear oversight can prevent fraudulent activities and ensure that companies adhere to sound financial practices. However, it is crucial to recognize that financial markets are influenced by a myriad of external factors, such as economic policies, geopolitical events, and technological changes, which are beyond the control of individual companies. Even the most robust governance structures cannot shield companies from these external shocks. Therefore, while strong corporate governance is essential for reducing risks and fostering investor confidence, it cannot entirely prevent financial crises. It is a necessary but not sufficient condition for financial stability. (Word count - 135 words)

Rater’s Comment

This response merits a high score due to its clear and well-developed argument. The student effectively acknowledges Jessica's point about the benefits of strong corporate governance, such as promoting transparency and ethical behavior, which can mitigate risks within companies. The response then builds on Jack's argument by emphasizing the influence of external factors like economic policies and geopolitical events on financial markets. This demonstrates a nuanced understanding of the complexities involved in preventing financial crises. The student provides specific examples, such as the role of oversight in preventing fraudulent activities, to support their argument. The response is well-organized, coherent, and free from major grammatical errors, making it easy to follow and understand. Overall, the student presents a balanced and well-reasoned perspective, contributing meaningfully to the discussion.

Strategies for Taking the Academic Discussion Writing Task 

The TOEFL Academic Discussion Writing Task may seem difficult and can cause you to become nervous. But don't feel scared! You can do this task effectively by incorporating a few vital strategies to ace your proficiency in academic writing.

• It is important to have a detailed examination of the question which is necessary to comprehend both the main idea and the setting for that specific question. It is necessary to consider the provided guidelines, such as providing a response that addresses all relevant angles.
• Finding the key arguments is made simpler by dissecting the question into its constituent parts. It's critical to successfully manage each component at the same time while organising the response.
• Before attempting to write the answer, always plan and come up with ideas and use them as examples so that you can showcase a range of perspectives.
• Making an outline ensures that the response is cohesive and the concepts are well-organized.
• Giving evidence or statistics to support assertions and points of view demonstrates your grasp of the subject.
• Avoid using any slang or informal language; instead, stick to professional language and academic terminologies, paying close attention to grammar and punctuation.

Finally, it's time for you to shine! Attempt the practice question and share your response in the comments! 

Our TOEFL experts are more than willing to provide valuable feedback which would help you achieve your target score!  Let's improve your writing skills together!

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