XAT 2015 LR & DM | Previous Year XAT Paper
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Answer the questions on the basis of information given in the following case.
Bright Engineering College (BEC) has listed 20 elective courses for the next term and students have to choose any 7 of them. Simran, a student of BEC, notices that there are three categories of electives: Job-oriented (J), Quantitative-oriented (Q) and Grade-oriented (G). Among these 20 electives, some electives are both Job and Grade-oriented but are not Quantitative-oriented (JG type). QJ type electives are both job and Quantitative-oriented but are not Grade-oriented and QG type electives are both Quantitative and Grade-oriented but are not Job-oriented. Simran also notes that the total number of QJ type electives is 2 less than QG type electives. Similarly, the total number of QG type electives is 2 less than JG type and there is only 1 common elective (JQG) across three categories. Furthermore, the number of only Quantitative-oriented electives is same as only Job-oriented electives, but less than the number of only Grade-oriented electives. Each elective has at least one registration and there is at least one elective in each category, or combinations of categories.
On her way back Simran met her friend Raj and shared the above information. Raj is preparing for XAT and is only interested in Grade-oriented (G) electives. He wanted to know the number of G-type electives being offered. Simran replied, “You have all the information. Calculate the number of G-type electives yourself. It would help your XAT preparation”. Raj calculates correctly and says that there can be _______ possible answers.
Which of the following options would best fit the blank above?
- A.
3
- B.
5
- C.
8
- D.
9
- E.
11
Answer: Option B
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Explanation :
Let QJ type electives, only Grade-oriented electives and only Quantitative-oriented electives be z, y and x respectively.
Note: y > x
∴ Number of QG type electives = z + 2
∴ Number of JG type electives = z + 4
The given data can be represented in the form of the following Venn diagram,
Thus, the following equation is obtained,
3z + 2x + y = 13
(x, z ≥ 1 and y ≥ 2 )
For z = 1, 2x + y = 10 and possible values of (x, y): (1, 8), (2, 6) and (3, 4).
For z = 2, 2x + y = 7 and possible values of (x, y): (1, 5) and (2, 3).
For z = 3, 2x + y = 4 and possible values of (x, y): (1, 2).
Now, G = 2z + y + 7
If z = 1, G = 17, 15, 13
If z = 2, G = 16, 14
If z = 3, G = 15
Only 5 unique values of G are possible i.e. 13, 14, 15, 16 and 17.
Hence, option (b).
Workspace:
Simran prefers J-type electives and wants to avoid Q-type electives. She noted that the number of only J-type electives is 3. Raj’s preference is G-type electives followed by Q-type electives. However, they want to take as many common electives as possible. What is the maximum number of electives that can be common between them, without compromising their preferences?
- A.
3
- B.
4
- C.
5
- D.
7
- E.
Not possible to answer from the above information.
Answer: Option C
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Explanation :
Electives common between Simran and Raj are JG type electives. i.e., (z + 4)
Referring to the previous solution, as x = 3, 3z + y = 7
As y ≥ 2, the only possible integer solution to 3z + y = 7 is (z, y) ≡ (1, 4)
Thus, a maximum of 5 electives can be common between Simran and Raj, without compromising their preferences.
Hence, option (c).
Workspace:
Vijay and Raj want to avoid each other. Vijay is interested in J-type electives and wants to avoid Q-type electives. Raj’s preference is G-type electives followed by Q-type electives. Raj noted that the number of only G-type electives is 2. Is there a possibility that they would not share any common electives(s)?
- A.
Yes. There is a possibility
- B.
No. They would meet in one elective.
- C.
No. They would not be able to avoid in two electives.
- D.
No. They meet in five electives.
- E.
Cannot be solved with the information given.
Answer: Option A
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Explanation :
As y = 2, x has to be 1.
From the answer to the first question of the set, substituting values of y and x in 3z + 2x + y = 13, we get z = 3.
Vijay prefers J-type and avoids Q-type. Raj prefers G-type followed by Q-type.
If Vijay opts for all 7 JG electives or 6JG electives and 1 J-type elective, and Raj opts for 2 G-type and 5 GQ electives or 2 G-type, 4 GQ electives and 1 Q-type electives, they can completely avoid each other.
Hence, option (a).
Workspace:
Answer the questions on the basis of information given in the following case.
Mr. Dipangshu Barua, a young IT professional, came early to office to assist his boss in the preparation for an important client presentation. When be switched on his computer, he saw an email from Mr. Patel. The email was as follows:
January 2, 2015
Dear Mr. Barua,
This email serves as a follow-up of my conversation with you on December 1, 2014. I have already conveyed need for improvement in your behaviour as desired as desired by your project leader and colleagues. They are yet to notice any visible improvements. I am apprehensive that your failure to act may warrant further action leading to dismissal. I will continue to monitor and assess your performance over the next three months to determine whether improvements meet the expectations. At the same time, I would like to re-affirm that you are very valuable for our organization.
Best Wishes,
Mr. A. Patel
HR Director
Initially, the e-mail distracted Dipangshu but he decided to focus on the job. Which of the following options might best explain his decision to do so?
- A.
Mr. Patel would soon be transferred to another department.
- B.
Last week, Mr. Dipangshu has been assigned to a new team in the same project.
- C.
Three days back, Mr. Dipangshu has been assigned a new project similar to his final year engineering project.
- D.
His friend has been hospitalized for the last three months.
- E.
Failing to perform in the client meeting might further complicate things.
Answer: Option E
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Explanation :
Since the mail says that Dipangshu's performance is under scrutiny, it is imperative for him to conduct himself cautiously in front of his boss. In order to do so, his first step should be to perform well in the tasks assigned to him. Getting demoralized by the letter and performing badly will not help him simplify things.
Hence, option (e) best explains his decision to focus on his job. So, eliminate options 1, 2, 3 and 4.
Hence, the correct answer is option 5.
Workspace:
The scheduled presentation went off smoothly. Back in his cabin, Dipangshu read
Mr. Patel’s e-mail once more and pondered over it. During the last meeting he tried hard to put forward his explanation but Mr. Patel had not allowed him to speak. Dipangshu was thinking of meeting Mr. Patel once again but was doubtful that would help. Incidentally, he had a job offer from a start-up with a comparable salary. If Dipangshu was to join the new job, he had to accept the offer within the next two weeks. However, he cannot think of a life without a job. Dipangshu was confused!
Which of the following options would be the best move for Dipangshu?
- A.
Talk to Mr. Patel and highlight the initiatives he has taken but at the same time start applying for other jobs.
- B.
Reject the offer from the start-up. Use the next three months to find a better job, but continue in the present job.
- C.
Resign from this organization right now.
- D.
Accept the offer, only if the start-up gives a salary hike, else keep prospecting.
- E.
Accept the offer with a request to give him a 10% salary hike.
Answer: Option E
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Explanation :
Option 1 is too risky as he cannot be sure if his position in the company is safe. Hence, he cannot rely on his discussion with Mr. Patel. The passage further mentions that Mr. Patel had not allowed him to even speak. Also, applying simultaneously for other jobs won't ensure the certainty of securing a worthy job. Eliminate option 1.
Option 2 is a poor decision as the offer had opened the door for quitting the current company with a job in hand. Eliminate option 2.
Option 3 is a hasty course of action as the passage mentions that he cannot think of a life without a job. Eliminate option 3.
Option 4 is not a wise approach as demanding a salary hike based on which he would accept the job offer, holds the chance of driving away the only feasible opportunity he had.
Option 5 is a rational move, as accepting the offer with a request for a 10% salary hike will increase his chances of acquiring a worthy job after quitting his current job.
Hence, the correct answer is option 5.
Workspace:
After a couple of weeks, Mr. Patel came to know that Dipangshu’s project leader Mr. John, a very competent senior executive, may have wilfully influenced his team members to file a wrong complaint against Dipangshu. Mr. John may have done it because Dipangshu has refused to tow John’s line. Mr. Patel also came to know that Dipangshu was thinking of quitting this job. He felt regretful about his letter to Dipangshu. He wanted to resolve the complicated situation. He was contemplating following five actions in his mind.
- Talk to Mr. John about Dipangshu and convey to him that losing a bright employee would cost the organization dearly.
- Catch up with Mr. John during coffee break and convey that Dipangshu has a very good track record.
- Chat with Dipangshu during coffee break.
- Catch up with Dipangshu during coffee break and convey that the organization values him.
- Arrange a meeting among Mr. John, Dipangshu and himself to sort out the difference.
Which of the following is the best sequence of actions for resolving the problem?
- A.
I, III, V
- B.
II, III, V
- C.
I, II, IV
- D.
I, IV, V
- E.
III, IV, V
Answer: Option D
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Explanation :
Since there has been a misunderstanding between Mr John and Dipangshu, it is best to straighten out things between the two.
In order to do so, Mr Patel should communicate Dipangshu's plan of quitting the job to Mr John and make him realize his mistake of undermining Dipangshu's spirit which has led the organization on the path of losing a bright employee. Eliminate options 2 and 5.
His next move should be to talk to Dipangshu and explain his worth to the organization with a view to changing his mind. Eliminate options 1 and 3.
Once the two are on the same page, arranging a meeting between Mr. John, Dipangshu and himself would help Mr. Patel reach a solution. This sequence is present in option 4.
Eliminate options 1, 2, 3 and 5.
Hence, the correct answer is option 4.
Workspace:
Answer the questions on the basis of information given in the following case.
A few years back Mr. Arbit and Mr. Boring started an oil refinery business. Their annual earing is currently just 50,000 million rupees. They are now exploring various options to improve the business. Mr. Xanadu, a salesperson from Innovative Technology Solutions (ITS), is trying to sell a new oil refinery technology to Mr. Arbit and Mr. Boring. This technology could potentially enhance their annual earning to 150,000 million rupees within a year. But they have to make one-time investment of 100,000 million rupees to implement the technology. If the technology is not successful, the investment would be lost. Mr. Arbit and Mr. Boring are discussing about possible risks of the investment.
Mr. Arbit is enthusiastic about this investment idea but Mr. Boring is a little sceptical. This impasse makes them approach a consultant. The consultant makes some observations. Which of the following observations, made by the consultant, might reduce Mr. Arbit’s enthusiasm for the new investment idea?
- A.
Investment is warranted only when benefits outweigh costs.
- B.
Technology investments give higher earnings in future.
- C.
Investment in technology leads to reduction of costs in the long run.
- D.
Technology risks can be controlled.
- E.
Business is all about taking risky decisions.
Answer: Option A
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Explanation :
From the options presented, the alternative which casts the biggest shadow of doubt over the technology investment would be an ideal choice.
Option 1 states that investing is only justified if the returns are more than the investment. The passage suggests that the investment if successful will offer an abundant return, but if unsuccessful would cause a substantial loss for the company.
Options 2 and 3 support technology investment and thus, indirectly support Mr. Arbit's enthusiasm.
Similarly option 4 is pro technology investment and can be eliminated.
Option 5 directly supports Mr. Arbit's enthusiasm and invalidates Mr. Boring's scepticism as the technology investment has a certain risk factor.
Hence, the correct answer is option 1.
Workspace:
In order to sell the technology to Mr. Arbit and Mr. Boring, Mr. Xanadu is thinking of five possible sales pitches. Which of the following sales pitches would reduce uncertainties the most for Mr. Arbit and Mr. Boring?
- A.
All other competitors are aggressively investing in risky technologies.
- B.
If the technology succeeds, the annual earnings would grow 3 times from the next financial year and they would be able to recover the invested money within 1 year.
- C.
Preliminary studies indicate that success rate of the technology is 85%.
- D.
The R&D team of ITS is working to counter any possible downside of the technology.
- E.
Business is all about taking risky decisions.
Answer: Option C
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Explanation :
Option 1 cannot be affirmed as it generalises the idea of investing in risky technology. The other competitors mentioned might be better prepared to face the risks involved as compared to Mr. Arbit and Mr. Boring.
Option 2 presents an already mentioned aspect of the technology investment, which is mentioned in the passage.
The data mentioned in option 3 states that the risk of the technology investment becoming unsuccessful is only 15%. Thus, option 3 would most reduce the uncertainties for the partners.
The fact that the R&D team of ITS is working on reducing risks for the technology does not imply the R&D team will be successful in doing so.
Option 5 invalidates the prime purpose presented in the question of reducing uncertainties.
Hence, the correct answer is option 3.
Workspace:
Mr. Arbit and Mr. Boring did not invest in the new technology, but the new technology is a big success. Repentant, they are now estimating the additional amount they would have earned (i.e. forgone earnings) had they invested in the new technology. However, the two owners differed on expected lifespan of the new technology. Mr. Arbit expected lifespan to be 5 years, whereas, Mr. Boring expected it to be 2 years. After the technology gets out-dated, the earnings from the business would drop back to 50,000 million rupees.
What would be the difference between two expected foregone earnings after 5 years of the technology investment, if yearly earnings are deposited in a bank @10%, compounded annually?
Note: Forgone Earnings = (Earnings from business with new technology) – (Earnings from business without new technology)
- A.
231,200 million rupees
- B.
331,000 million rupees
- C.
400,510 million rupees
- D.
431,000 million rupees
- E.
464,100 million rupees
Answer: Option B
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Explanation :
Forgone Earnings (F) = Earnings with new technology – Earnings without new technology
Let X = (Earnings without new technology for 5 years),
Let Y and Z be A’s and B’s respective earnings with new technology.
FA = Y – X
FB = Z – X
FA – FB = Y – Z
Both A and B use the new technology in the first 2 years. For the last 3 years, only A uses the technology.
Y = (Earnings with new technology for first 2 years) + (Earnings with new technology for last 3 years)
Z = (Earnings with new technology for first 2 years) + (Earnings without new technology for last 3 years)
∴ Y – Z = (Earnings with new technology for last 3 years) – (Earnings without new technology for last 3 years)
Earnings of the third year, with (or without) new technology, are placed at compound interest for 2 years. Similarly, earnings of the fourth year are placed at C.I. for 1 year and earnings of the last year do not earn any interest.
∴ Y – Z = [(150 × 1.12 + 150 × 1.1 + 150) – (50 × 1.12 + 50 × 1.1 + 50)] ×1000 million
= [(100) × 1.12 + (100) × 1.1 + 100)] ×1000 million
= 331000 million
Hence, option (b).
Workspace:
Answer the questions on the basis of information given in the following case.
Life saving Pharmaceuticals (LSP) is India-based Pharmaceuticals Company. Their business mostly revolves around a couple of generic drugs and a few patented drugs. LSP operates in 30 odd countries and more than 50% of their sales volume is from outside India.
If more than 50% of their sales volume is from generic drugs, which of the following options is definitely correct? (Note : All percentages figures are with respect to total sales volume)
- A.
If sales volume of patented drugs in India is 43%, the sales volume of generic drugs in India will be less than 43%.
- B.
If the sales volume of generic drugs in foreign countries is at least 24%, the sales volume of patented drugs in India will be above 24%.
- C.
If the sales volume of patented drugs in India is 54%, the sales volume of generic drugs in foreign countries will be above 54%.
- D.
If the sales volume of patented drugs in India is 29%, the sales volume of generic drugs in foreign countries will be above 29%
- E.
If the sales volume of generic drugs in India is at least 60%, the sales volume of patented drugs in foreign countries will be above 60%.
Answer: Option D
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Explanation :
Let the total sales volume be 100. Let the sales volumes from India and outside India be 49 and 51 respectively. Let the sales from generic drugs and patented drugs be 51 and 49 respectively.
These values satisfy all the given conditions.
Solving by options,
Option 1:
If the sales volume of patented drugs in India is 43% of 49, the sales volume of generic drugs in India will be 57% (> 43%) of 49.
Also, (57% of 49) is an acceptable value for sales of generic drugs in India, as it will not exceed the total sales of generic drugs i.e. 51.
Hence, option (a) is eliminated.
Option 2:
If the sales volume of generic drugs in foreign countries is 24% of 51, the sales volume of patented drugs abroad will be 76% of 51 i.e. 38.76. Correspondingly, the sales volumes of patented drugs in India will be (49 – 38.76) i.e. 10.24, which is 20.9% (< 24%) of total sales in India i.e., 49.
Hence, option (b) is eliminated.
Option 3:
If the sales volume of patented drugs in India is 54% of 49, the sales volume of generic drugs in India becomes 46% of 49 i.e. 22.54. Correspondingly, the sales volumes of generic drugs abroad will be (51 – 22.54) i.e. 28.46, which is 55.8% (> 54%) of 51.
Hence, option (c) cannot be eliminated.
Option 4:
If the sales volume of patented drugs in India is 29% of 49, the sales volume of generic drugs in India becomes 71% of 49 i.e. 34.79. Correspondingly, the sales volumes of generic drugs abroad will be (51 – 34.79) i.e. 16.21, which is 31.8% (> 29%) of 51.
Hence, option (d) cannot be eliminated.
Option 5:
If the sales volume of generic drugs in India is 60% of 49, the sales volume of patented drugs in India becomes 40% of 49 i.e. 19.6. Correspondingly, the sales volumes of patented drugs abroad will be (49 – 19.6) i.e. 29.4, which is 57.6% (< 60%) of 51.
Hence, option (e) is eliminated.
Again considering option 3,
Let the sales volumes from India and outside India be 30 and 70 respectively. The rest of the values remain the same.
If the sales volume of patented drugs in India is 54% of 30, the sales volume of generic drugs in India becomes 46% of 30 i.e. 13.8. Correspondingly, the sales volumes of generic drugs abroad will be (51 – 13.8) i.e. 37.2, which is 53.1% (< 54%) of 70.
Hence, option (c) is eliminated.
Hence, option (d).
Workspace:
Mr. Sinha, a senior executive of LSP, observes that their business in India is not vibrant. LSP faces stiff competition from Indian and global players, except in rural areas. Interestingly, most of their sales in the rural area are from cough syrup, used as sedatives by teenagers. Mr. Sinha is planning the following actions to improve business in the long run.
- Invest in development of new drugs.
- Increase sales of cough syrup in the rural markets.
- Try and cut costs.
- Recruit more medical representatives in the rural areas.
Which of the following sequences is best arranged in the descending order of appropriateness?
- A.
I, III, II
- B.
II, I, III
- C.
II, III, I
- D.
IV, II, III
- E.
IV, III, I
Answer: Option A
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Explanation :
The question mentions that the sales of LSP in India are bleak and it faces stiff competition from foreign and local players, except in rural areas where it has high cough syrup sales. In the light of such a background the company intends to improves sales in the long term.
Statement I is the best option from the perspective of the company. Hence, it is the most appropriate course of action.
The next immediate step the company can take to improve business in the long term is to cut operating costs; the process may be time consuming but is an efficient one in the long term aspect of the country's operation.
As the issue of teenagers abusing cough syrups as sedatives is an ethical issue, increase in the sales of cough syrup will be beneficial to the company but not the teenagers. Hence, it can create trouble for the company in the long run. So, statement II is least appropriate.
The motive behind sending more medical representatives to rural areas is unclear from the question. It can either be to create awareness regarding the ill effects of substance abuse or to sell more number of cough syrups. Hence, statement IV is ruled out.
Thus, the correct descending order of the statements is I, III, and II.
Hence, the correct answer is option 1.
Workspace:
Mr. Rastogi, HR head of LSP, is contemplating of transferring MR. Jose, from India to their Luxembourg office. Mr. Jose’s wife is also with the HR department of LSP. The couple is expecting their first child within next four months and hence they want to be together. Mr. Rastogi is wondering whether Mr.Jose would accept the transfer. If he doesn’t, Mr. Rastogi would have to send a less competent person for this job as early as possible. The office in Luxembourg is very important for the company’s future. It is at its nascent stage and does not yet have an HR department. Hence, it is not possible to transfer Mrs. Jose to Luxembourg.
Which of the following options would be most appropriate, from the organization’s perspective, to resolve the issue?
- A.
Giving a salary hike to Mr. Jose with a promise to transfer Mrs.Jose to Luxembourg in the near future.
- B.
Giving Mrs. Jose option to work from home while in Luxembourg so that she can be with Mr.Jose.
- C.
Giving Mr. Jose option to work from India for the time being so that he can be with Mrs. Jose in India.
- D.
Giving a salary hike to Mr. Jose to compensate for Mrs. Jose’s salary so that she can join Mr. Jose at Luxembourg, even with loss of pay.
- E.
Asking Mr. Jose to accept the offer right now but give him up to six months to join Luxembourg office.
Answer: Option B
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Explanation :
Option 1 sidetracks the issue of the couple's desire to be together, considering the fact that they are expecting their first child.
Option 3 does not work in the favour of the organization. Since company needs a more competent person for the job in Luxembourg immediately, it might put the company's future at stake.
Eliminate 3. Same explanation applies to option 5. Hence, eliminate option 5.
Although option 4 looks compelling, it is not reasonable, as pay was never an issue for the couple. It will be unethical on the part of the company to compromise Mrs. Jose's job with a hike in Mr. Jose's salary. Eliminate option 4.
Option 2 comes forth as the most appropriate solution taking into account all the issues.
Hence, the correct answer is option 2.
Workspace:
Mr. Khan used to work as the Vice President of LSP India. However, he had resigned from LSP India for a better job in New York. In the meantime, his wife was promoted to head the HR of LSP India. Mrs. Khan had struggled hard to reach this position and was quite popular and respected within the organization. Mrs. Khan was contemplating whether she should give up her career and join him in New York. Mrs. Khan is considering the following actions:
- Take a break for the time being and focus on personal life. Given her reputation, she can always get back to the same job, if required.
- Go to New York, on leave without pay for two months to help Mr. Khan settle down. After that she can come back and resume her responsibility in LSP India.
- Request Mr. Khan to look for an equivalent job in India.
- Resign form LSP India, join Mr. Khan in New York, and look for a similar job there.
- Request LSP India for a similar position in LSP USA and follow Mr. Khan to New York.
Which of the following sequence of actions can be immediately taken by Mrs. Khan to maintain her work-life balance?
- A.
I & II
- B.
I & III
- C.
I & IV
- D.
II & V
- E.
III & V
Answer: Option E
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Explanation :
Given the reputation and popularity of Mrs Khan, sabotaging her professional life to focus on personal life would be an unwise decision. So, statement I is not a valid course of action. Hence, eliminate options 1, 2 and 3.
Statement II is also not a valid course of action, since it is similar to statement I in that it involves Mrs. Khan sabotaging her professional life. So we can eliminate option 4.
Statement IV is uncertain as there is no guarantee of getting a job in the US. Her career may
be compromised.
Requesting Mr. Khan to find a job in India is an appropriate action as it will save Mrs. Khan's career in India. This way they can both stay together in India. Statement III is justified.
Statement V also makes for an appropriate course of action. Mrs. Khan can also request LSP India for a similar position in LSP USA without disrupting her ongoing career.
Hence, the correct answer is option 5.
Workspace:
Answer the questions on the basis of information given in the following case.
Mohan’s was a popular fast-food joint at Connaught Place, Delhi. Initially Mohan handled his business alone. His sons, Ram and Kishan, joined the business after graduation from college. Ram was entrepreneurial in nature. Subsequently, another branch of Mohan’s was opened in Panipat. Mohan had chosen Ram to head the Panipat branch. Though Ram increased sales in short time, he had stopped using premium quality organic vegetables, the speciality of Mohan’s. Mohan and Kishan were not happy with his way of doing business.
Now, the foremost challenge for Mohan was to sort out this issue with Ram. Mohan knew that replacing Ram with Kishan was difficult as Kishan did not want to leave Delhi. However, giving a freehand to Ram might have long term negative consequences. Mohan was confused about the future of course of actions.
Mohan sought the help of five consultants, who give the following opinions:
- Organic vegetables might be a big success at Connaught place but awareness about organic vegetables is low among Panipat customers.
- The Connaught place model can be implemented in Panipat provided the business is prepared to face the consequences.
- Many high end restaurants in Panipat use organic vegetables. So, using organic vegetables will not be a differentiating factor.
- Selling prices of their dishes in Panipat are significantly lower. Using organic vegetables will bring down profits.
- Premium quality organic vegetables are not easily available in Panipat.
Which of the following set of options would support Ram’s argument of not using organic vegetables?
- A.
I, III, IV
- B.
II, IV, V
- C.
I, III, IV, V
- D.
II, III, IV, V
- E.
All of the above
Answer: Option C
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Explanation :
The question stem asks for the set of options that would support Ram's argument of “not” using organic vegetables.
All the options except II strongly support Ram's argument stating the drawbacks of using organic vegetables in Panipat.
Statement II does not support Ram's argument as it says “provided the business is prepared to face the consequences”; from this, one cannot ascertain whether the consequences will turn out bad and in favour of not using organic vegetables.
So, eliminate options 1, 2, 4 and 5.
Hence, the correct answer is option 3.
Workspace:
Mohan sought feedback from a few of his businessmen friends, who were familiar with both the branches. Here is what they said:
- Businessman 1 : Customers of Connaught place and Panipat are very different.
- Businessman 2 : Customers in Panipat are extremely happy with Ram’s behaviour.
- Businessman 3 : Panipat branch does not use the same quality of ingredients but maintains good hygiene and taste.
- Businessman 4 : Who knows, tomorrow the customers of Panipat might also appreciate what Connaught place customers appreciate today!
If Mohan thinks all these are valid concerns, which of the following actions would be best for the business?
- A.
Training Kishan to replace Ram in a few months.
- B.
Not worrying about ingredients as long as business grows.
- C.
Bringing Ram to Connaught place branch.
- D.
Naming the Panipat branch as ‘Ram’s’, and changing it back to Mohan’, when needed.
- E.
Asking Kishan to run the Panipat branch.
Answer: Option D
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Explanation :
It can be inferred from the businessmen's statements that none of them has any harsh or strong opinion about Ram's approach of not using organic vegetables. Thus, according to the businessmen, substituting organic vegetables at the Panipat branch is not required.
Options 1 and 5 would unnecessarily complicate things as Kishan would take more time to get himself acquainted to the Panipat branch, also it is not guaranteed that it would yield the desired results for Mohan. Eliminate options 1 and 5.
The passage states that giving a free hand to Ram might have long term negative consequences. However, option 2 doesn't take this into consideration. Eliminate option 2.
Ram has already established the Panipat branch and he is the ideal person to carry out future operations there. Bringing him back to Connaught place will complicate things and serve no purpose. Eliminate option 3.
If the name of the Panipat branch is changed to 'Ram's' instead of 'Mohan's', then the identity of the business in Panipat will be linked to Ram. Thus, option 4 satisfies all the opinions expressed by the four businessmen.
Hence, the correct answer is option 4.
Workspace:
After discussing with a few customers, Mohan realised that compromising on the quality of ingredients at Panipat branch may not be good idea but at the same time he also realised that Panipat branch had grown fast. He was contemplating following five actions. Which of the following actions would be the best for the future of his business?
- A.
Creating awareness campaign for organic vegetables in Panipat.
- B.
Mohan himself should took after the Panipat branch.
- C.
Close down the Panipat branch.
- D.
Send Kishan to Panipat branch and bring Ram to Connaught place permanently.
- E.
Hire a new person to run the Panipat branch
Answer: Option B
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Explanation :
If an awareness campaign related to organic vegetables is generated in Panipat it can malign the reputation of the Panipat branch as it was previously not using organic vegetables.
As Mohan is an experienced person and is the one responsible for taking the Connaught Place branch to where it is today, he is the best candidate to run the Panipat branch as he is likely to generate the required sales whilst also maintaining the quality of food.
Closing down the Panipat branch would be a silly idea, as the place is already established and generates revenue.
Sending Kishan to the Panipat branch is a bad idea as he would take more time to get himself acquainted to the place. Mohan has already established the place and is the better person between the two brothers to carry out the operations there.
Option 5 can be eliminated for the same reason presented above to eliminate option 4.
Hence, the correct answer is option 2.
Workspace:
Answer the following question based on the information given below.
MBA entrance examination comprises two types of problems: formula-based problems and application-based problem. From the analysis of past data, Interesting School of Management (ISM) observes that students good at solving application-based problems are entrepreneurial in nature. Coaching institutes for MBA entrance exams train them to spot formula-based problems and answer them correctly, so as to obtain the required overall cut-off percentile. Thus students, in general, shy away from application-based problem and even those with entrepreneurial mind-set target formula-based problems.
Half of a mark is deducted for every wrong answer.
ISM wants more students with entrepreneurial mind-set in the next batch. To achieve this, ISM is considering following proposals:
- Preparing a question paper of two parts, Parts A and Part B of duration of one hour each. Part A and Part B would consist of formula-based problems and application-based problems, respectively. After taking away Part A, Part B would be distributed. The qualifying cut-off percentile would be calculated on the combined scores of two parts.
- Preparing a question paper comprising Part A and Part B. While Part A would comprise formula-based problems, Part B would comprise application-based problems, each having a separate qualifying cut-off percentile.
- Assigning one mark for formula-based problems and two marks for application based problems as an incentive for attempting application-based problems.
- Allotting one mark for formula-based problems and three marks for application-based problem, without mentioning this is the question paper.
Which of the following proposal (or combination of proposals) is likely to identify students with best entrepreneurial mind-set?
- A.
II
- B.
I & II
- C.
I & III
- D.
II & III
- E.
II & IV
Answer: Option D
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Explanation :
If the percentile for formula based questions and application based questions would be combined, students might maximise their score merely by attempting formula based questions. This is undesirable.
We can rule out proposal I.
Statement II is quite strong a stance, and would force students to attempt questions from both sections. However, students may attempt close to zero application based questions.
Statement III gives additional incentive to attempt ‘application-based problems’. Another advantage is that it might avoid the extreme outcomes of students attempting very few questions from ‘application-based problems’. A combination of proposals II and III would be ideal.
As it is already mentioned in the passage that even students with an entrepreneurial mindset avoid application based questions in order to score better, the college will not be able to identify students with an entrepreneurial mindset if they decide to not disclose the higher weightage of marks allotted to application based questions. Also, it is an unfair course of action. Hence, statement IV is not valid.
Hence, the correct answer is option 4.
Workspace:
ISM conducts a common entrance examination every year. This year, the question paper would comprise 60 questions with an equal mix of formula-based problems and application-based problems. All questions would carry equal marks. Balaji is appearing for the examination. Before, appearing for the examination he gets the following information from coaching institutes:
- Application-oriented problems take more time to solve in an examination hall.
- Chances of silly mistakes would be low in application-based problems.
- ISM would assist the students with bank loans to start a new venture.
- Options are generally confusing for formula-based problems.
- ‘Practice makes a man perfect’ can apply only to formula-based problems.
- Students get very good campus jobs.
Based on above information, which of the following options would help him to be better prepared for the examination?
- A.
I &II
- B.
I, II & V
- C.
II, III & VI
- D.
IV, V & VI
- E.
I, II, IV & V
Answer: Option E
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Explanation :
If Balaji already knows that solving application based problems takes more time, he can focus more on formula based problems and achieve the required cut-off percentile.
Similarly, if Balaji knows that the chances of making silly mistakes in application based questions is low, he can plan to attempt those questions towards the end of the exam, where the chances of making silly mistakes is higher due to stress.
Statements III and VI are unrelated to the issue presented in the question.
Knowing that options for formula based questions are tricky, Balaji can avoid attempting those questions.
By knowing that the popular idiom “practice makes a man perfect” is applicable to formula based questions, he can decide whether to attempt such questions or to avoid them, based on his capability.
Thus, only statements I, II, IV and V are valid for the question presented.
Hence, the correct answer is option 5.
Workspace:
Answer the questions on the basis of information given in the following case.
The Disciplinary Committee of Nation Political Party (NPP) is meeting today to decide on the future of two of their party members, Mr. Loyal and his son Mr. Prodigal. Mr. Prodigal is the prime accused in the brutal murder of Mr. Victim, an opposition party leader. Mr. Prodigal is in police custody and his appeal for bail has got rejected. Mr. Loyal claims that his son is innocent and Mr. Victim’s death was the result of internal rivalry in the opposition party. Though Mr. Loyal is not accused in this case, his weakness for his son is well known. The media is blaming him for influencing key witnesses to protect his son. Severe criticism of his father-son duo, both by the media and some social activists, is damaging the image of the party. However, Mr. Loyal has significant followers within the party and is considered an asset to the party. Any harsh decision against Mr. Loyal would adversely affect the future of NPP and could even lead to a split in the party. This would benefit the opposition.
Which of the following actions would adversely affect both NPP and Mr. Loyal, the most?
- A.
Take no action against Mr. Loyal.
- B.
Suspend Mr. Prodigal from the party with immediate effect.
- C.
Expel Mr. Loyal from the party with immediate effect.
- D.
Ban Mr. Loyal from entering party premises till completion of court proceedings.
- E.
Initiate an internal inquiry to find the truth.
Answer: Option C
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Explanation :
Taking no action against Mr. Loyal would not affect either party as he is not directly involved in the murder case.
Suspending Mr. Prodigal from the party would upset Mr. Loyal as it is common knowledge that the latter has a soft spot for Mr. Prodigal, and it might (remote possibility) lead to Mr. Loyal separating from the party.
Expelling Mr. Loyal from the party would obviously affect him as his political repute might be affected. The NPP party will also be affected as it is stated in the passage that Mr. Loyal's followers would part along with him. This entire situation would benefit the opposition party.
Banning Mr. Loyal from party premises till the court case is cleared will affect both parties, but the situation will not be as grave as compared to option 3.
Initiating an internal inquiry may not affect any of the parties as the information of an internal inquiry can be kept away from Mr. Loyal.
Thus, the strongest possibility of both the parties getting adversely affected is presented in option 3. Option 4 is close but can be eliminated on the basis that the effect of Mr. Prodigal's suspension from the party would not directly affect Mr. Loyal, who may still continue with the party.
Hence, the correct answer is option 3.
Workspace:
At the Disciplinary Committee meeting, members came up with the following suggestions. Which of the following suggestions would harm the party, the least?
- A.
Maintain status-quo
- B.
Expel Mr. Prodigal from the party with immediate effect to maintain party’s clean image
- C.
Initiate an internal inquiry to find the truth.
- D.
Suspend Mr. Prodigal from the party with immediate effect but announce that he will be taken back if the court declares him innocent.
- E.
Suspend both Mr. Loyal and Mr. Prodigal from the party with immediate effect.
Answer: Option D
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Explanation :
Maintaining a status-quo, i.e. taking no action at all, would convey a wrong message to the public and the media; it can have a negative impact on the party's future.
Expelling Mr. Prodigal is certain to upset Mr. Loyal, as the fact that he has a weakness for his son is common knowledge.
If an internal inquiry is set against Mr. Prodigal, it may upset Mr. Loyal. The party cannot afford the risk of losing Mr. Loyal as he is an asset to the party.
The safest bet for the party would be to temporarily dismiss Mr. Prodigal, and take him back if he is acquitted of the murder charge. This course of action would not only help the party gain some brownie points with the public and media, but will also not upset Mr. Loyal as much as the other alternatives can.
Option 5 if implemented will definitely affect the party in an adverse manner, as Mr. Loyal is an asset to them.
Hence, the correct answer is option 4.
Workspace:
Mr. Opportunist, a veteran member of NPP, stakes his claims to be nominated as an NPP candidate in the upcoming election. Mr. Opportunist presented the following arguments in favour of his candidature to the NPP Executive Committee.
- Mr. Loyal’s candidature in the upcoming election will adversely impact NPP’s chances. Hence, the party should not nominate him.
- The party should call a press conference to disown Mr. Loyal. This would enhance the party’s image.
- The party would not be able to take any strong disciplinary action against Mr. Loyal, if he gets re-elected.
- I have a lot of goodwill and significant followers in the constituency,
- None of my close relatives are into active politics.
Which of the following combinations would best strengthen the claim of Mr. Opportunist?
- A.
I & III
- B.
I &IV
- C.
II & III
- D.
III & V
- E.
IV & V
Answer: Option B
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Explanation :
Argument I rules out the party's intention of nominating Mr. Loyal in the upcoming election making way for Mr. Opportunist. Hence, it makes for a strong argument supporting the claim of Mr. Opportunist. Hence, eliminate options 3, 4 and 5.
Argument III simply rephrases the argument stated in option II; it is a weak line of reasoning. So, eliminate option 1.
Argument IV is a strong reason as to why it would be a good idea to nominate Mr. Opportunist.
Hence, the correct answer is option 2.
Workspace:
The Disciplinary Committee has decided to suspend Mr. Loyal from the party because they felt he was influencing the judicial process. However, Mr. Loyal feels that the committee is biased and he is being framed. Now, election has been announced. The last time. Mr. Loyal had won with a majority on account of his good work. Which of the following options is most likely to resurrect Mr. Loyal’s immediate political career?
- A.
The main opposition party has invited Mr. Loyal to join the party and contest the election Chance of winning is high.
- B.
Not participation in the campaign and instructing his followers to stay away from the campaigning process.
- C.
Ask his followers to support the NPP nominated candidate and display his loyalty to NPP.
- D.
Mr. Loyal should contest as an independent candidate. But because of a split in votes, his chances of winning would be low.
- E.
Influence the nomination process through his followers within NPP, to get one of his close associates nominated.
Answer: Option A
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Explanation :
All the options except 1 seem incongruous with respect to the information provided in the passage.
Option 1 is most feasible and will give a boost to Mr. Loyal's political career. Joining another party would do no harm to his career, given his popularity among voters as well as the support of opposition party. So, eliminate options 2, 3, 4 and 5.
Hence, the correct answer is option 1.
Workspace:
Innovative Institute of Business (IIB) has decided to be the first green campus in India. IIB Administration has advised all campus residents to reduce carbon footprints. IIB faculty members did a brainstorming and came up with the following suggestions:
- Replacing electricity source for street lights with solar panels.
- Replacing the existing buildings with environment friendly buildings.
- Organizing a seminar on ‘Towards a Sustainable Future’ involving all students, staff, and experts from around the country.
- Introducing a compulsory course on sustainability to increase awareness among students.
- Conducting an initial energy audit to explore where IIB can reduce carbon footprints.
Which of the following options would be the most preferred sequence of actions to reduce carbon footprints on campus?
- A.
II, IV, V
- B.
IV, V, III
- C.
V, I, II
- D.
V, I, III
- E.
V, III, I
Answer: Option C
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Explanation :
From the given suggestions, the foremost step should be to locate the places where IIB can start implementing its measures to curb carbon footprints which is stated in suggestion V.
Organizing a seminar to create awareness regarding a sustainable future is an indirect means of increasing awareness. Similarly, introducing a compulsory course is also not an effective way of educating the students.
The next logical step should therefore be to implement an actual strategy to reduce carbon footprints. Solar panel operated lights and environmentally-friendly buildings are practical and effective ways to reduce carbon footprints.
Thus, rule out options 1, 2, 4 and 5.
Option 3 is the best answer as it contains concrete actions.
Hence, the correct answer is option 3.
Workspace:
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