XAT2012 Related Question Answers
26. When income tax rates are reduced, there is an increase in taxable income, and an increase in taxable income results in increased total income tax revenues for the government. Which of the following is analogues to the argument above in terms of its logical features?
27. Not wanting to present an unwanted optimistic picture in the board meeting, the CEO estimated the sales growth _____________. The option that will best fill the blank in the above sentence would be:
28.
Read the following passage and provide appropriate answers for the questionsThe idea of demarcating certain areas within the country as special economic zones to promote investment and growth is not new. A large country unable to provide the kind of facilities and environment that can attract foreign investment throughout the country often finds it feasible and attractive to carve up some of its areas where such facilities can be provided. The laws and procedures for setting up new industries are waived to make the area business-friendly with developed infrastructure and a one-window interaction with government. In
addition, huge tax benefits are promised to lure investors. China’s experience shows that if chalked
out and implemented with care such a policy can accelerate the flow of capital and technology from
abroad and thereby speed up growth. However, SEZs may not be the best option in all situations to clear the bottlenecks in growth. India’s experience with export processing zones (EPZs) bears this out. They have failed in India for the simple reason that the factors that made the SEZs successful in China have been absent here. In India, as in China, EPZs were thought of as a way of providing an escape route from the stranglehold of control that prevailed over the Indian economy. But even while promising to ease the rigours of controls, Indian policy-makers could not give up their penchant for micromanaging from the centre and undoing the promised relaxations with all kinds of qualifications and “guidelines”. Over last two decades India has evolved into a market economy and much of governmental control has disappeared, but the flow of foreign direct investment has not reached anywhere near the levels of China. Besides, infrastructure building has fallen far short of what is required. Even after three years of the enactment of the Electricity Act (2003), private investment in electricity generation is still a trickle with the states refusing to give up the monopoly of
their electricity boards in the matter of purchase of the power generated. While swearing by growth, governments at both the centre and the states cite the fiscal responsibility laws to plead their helplessness
in making the required investments to improve infrastructure. Given the situation, the SEZs have apparently been thought of as a simple way out. In its enthusiasm for SEZs the commerce ministry forgot two critical lessons of the Chinese experience, viz., that an SEZ must be of an adequate size to provide opportunities
for reaping the benefits of large-scale operations and their number should be few. Every industry or economic activity worth its name is now seeking SEZ status. Proposals are now being floated to invite foreign educational institutions to come to India with promises of SEZ treatment! The finance ministry apprehends a loss of nearly 1,75,000 crore in direct taxes, customs duties and excise duties over the next five years.The objective of the author in writing the above passage seems to be to
32. Read the following passage and provide appropriate answers for the questionsThis is one of the unanswered questions that I want to explore. I believe that this is certainly one of the deeper questions about technology. Why do I say so? Without evolution technologies seem to be born independently and improve independently. Each must come from some unexplained mental process, some form of creativity or thinking outside the box that brings it into existence and separately develops it. With evolution, new technologies would be birthed in some precise way from previous ones, albeit with considerable mid-wifing, and develop though some understood process of adaptation. In other words, if we could understand evolution, we could understand the most precious of processes: innovation. But, let me define evolution before I proceed further. The word evolution has two general meanings. One is the gradual development of something, as with the evolution of ballet or the English madrigal. The other is the process by which all objects of some class are related by ties of common descent from the collection of earlier objects. The latter is what I mean by evolution.Which of the following can be inferred from the passage? I. The author’s main concern is to develop a theory of innovation. II. The author is interested in putting forth a theory of technological evolution. III. The author believes before developing a theory of technological evolution, one needs to investigated whether technology evolves at all. IV. Evolution, as the author puts it, is a sense of common relatedness.
33. In 1867, S. Colum Gilfillan, a sociologist traced the evolution of ships from the dugout canoe to the modern steamship of the day. Many theories propose the existence of a technology in many forms. From these variations, some perform better and are selected for further use and development. Till date the people who have thought hardest about the general questions of technology have only been social scientists. They have viewed technology from the outside as stand-alone objects without studying earlier technologies. Some technologies, for example, the laser, the jet engine, the radar, the quick sort algorithm and the locomotive just appear, or at least they seem to just appear unlike novel biological species which are versions of earlier objects. Radar descends from radio but you can vary 1930s radio circuits as radically you like but you will never get radar. Radar requires a different principle. Assuming the above statements are true, which option would most strengthen the author’s premise that the question that he has identified has not been solved as yet?
34.
on the basis of the following letter.To the Chairman:
Dear Mr. Sailesh,
At the December 3, 2011 meeting, it was decided that no two officers would hold positions on the same committee. It has recently come to my attention that both Chaitanya Rao and Ajit Singh will be serving in
some capacity on the Cultural Committee, and both have been nominated for officer status. As you know,
this is in direct disregard for the rules as voted by the Members Council last December 3, 2011. I would
hope that sufficient action be taken by the Disciplinary Committee (on which committee both of the above are members) so that this problem will be remedied.
Sincerely,
Arvind SinghWhich of the following is an essential flaw that the writer of the letter overlooked?
35. If both the nominations are confirmed, which of the following exhaustively and reasonably, describes actions that may occur in the near future?
36. on the basis of the information given in the following case. Due to increased competition, Ginger Automobiles, the Indian subsidiary of Pepper Automobile Company (PAC) reported lower sales and profits. PAC expects its new model Limo, developed especially for value conscious customers of India and China, would revive its fortunes. In order to prevent customers from uying competing products, PAC announced the launch of Limo six months before schedule. Due to unrest in its Indian supplier’s plant, deliveries of essential components for its main plant was hampered, and hence it decided to launch Limo in China only as per the original plan. Within a short span of time, Limo captured 30% market share in China, which was 200% higher than expected. Indian customers who had looked forward to purchasing Limo were becoming increasingly unhappy to the non-availability of Limo in India. Ginger’s dealers were worried about loss of business from the customers who might switch to other cars.Statement I: In the Chinese market, Baft, and Hebe, are competing models in Limo’s target market. Due to increase in sales of Limo by 200%, Baft and Hebe saw their market share decline by 10%. Statement II: Baft and Hebe were not desired by the customers due to their new features. Which of the following conclusions can be most justifiably made?
37. Unhappy customers will not only leave the company, but also spread negative publicity about the company. The best way, among the options below, to deal with customers is
38. Mr. Murugan from Chennai experienced the comfort of Limo during his visit to China. He was willing to deposit an approximate price of Limo to buy the first available unit from Mr. Ahmed, a dealer in Chennai, known for fair dealing. Ginger Automobile is yet to announce the actual price, and the process for allocation of the vehicles. In order to maximise his cash flow, Mr. Ahmed should
39.
On the basis of the information given in the following case.
Tina a blast furnace expert, who works as a technology trouble-shooter stays in Jamshedpur. She has got an important assignment in Delhi, which requires six hours to complete. The work is so critical that she has to start working the moment she reaches the client’s premises. She is considering various options for her onward and return journey between Jamshedpur to Delhi.A quick search revealed that ticket from Jamshedpur to Delhi is available in two trains. Trains 12801 and 12443 depart from Jamshedpur station at 06:45 hrs and 15.55 hrs and reach Delhi next day at 04:50 hrs and 10:35 hrs respectively. Trains 12444 and 12802 start from Delhi at 17:20 hrs and 22:20 hrs and reach Jamshedpur next day at 10:35 hrs and 20:05 hrs respectively. Another option is to reach Ranchi by a three hour road trip and take a flight to Delhi from Ranchi. The distance between Ranchi and Delhi is covered in 105 minutes both-ways by any of the scheduled flights. Air India operates two flights, AI 9810 and AI 810, which depart Ranchi at 8:00 hrs and 15:25 hrs respectively. Flight number IT-3348 operated by Kingfisher Airlines departs Ranchi at 19:20 hrs. Return flights operated by Air India, AI 9809 and AI 809, depart Delhi at 5:50 hrs and 11:00 hrs respectively. Flight number IT-3347 operated by Kingfisher Airlines departs Delhi at 17:10 hrs.From Tina’s home Jamshedpur railway station is five minutes drive, and her destination at Delhi is 90 minutes and 30 minutes drive from airport and railway station respectively. One has to reach the airport at least one hour before the scheduled departure to complete the boarding procedure. At every railway station she loses five minutes in navigating through the crowd.If Tina wants to minimize the total time out of Jamshedpur, the best option for her, from the options given below, is:
40. Tina gets a message that her work has to be completed between 9:00 hrs. and 17:00 hrs. If she wants minimize the total time out of Jamshedpur, the best option, from the options given below, for her among the following is to go by
41. Tina has to appear for an exam on 8 th of January in Jamshedpur and she can start from her residence in Jamshedpur only after 16:00 hrs of the same day. Choose the option, from the options given below, that will help her to minimize the total time out of Jamshedpur.
42. If Tina decides to minimize the in-between waiting period, the option that she should choose from the options given below, will be:
43. on the basis of the information given in the following case. Teknik Group of industries had businesses in different sectors ranging from manufacturing, construction, fish farming and hotels. These different businesses operated as semi-independent units managed by the unit level managers. Teknik’s management had an internal consultancy group called as Business Advisory Group (known internally as BAG). The 15 experts in BAG were hired personally by Mr. Teknikwala, the owner of Teknik, who wanted this core group of experts to help his organization grow fast without facing the typical growth hurdles. Most of them were specialists in fields like law, information technology, human resource management, and operations management. Almost all of them had experience spanning decades in the industry. Whenever any of the units faced any significant all units and it represented an extra work for those who were involved. This coordination was required to understand the different work processes and the users’ requirements. This coordination activity was being extensively managed by the old timers as they were familiar with internal processes and people in the different units. An external consultant was also hired for customization and implementation After two months, BAG teams had to fortnightly present their progress to Ms. Teknikwali’s team. In the last meeting Ms. Teknikwali was dissatisfied. She explained her thinking that since ERP impacted every aspect of the business, the roll out had to be done faster. She wanted Mr. Shiv to get the implementation completed ahead of schedule. In the meeting she asked Mr. Shiv to get the people in IT team to be more productive. Not willing to disagree, Mr. Shiv committed to a roll-out schedule of complete ERP system in 6 months instead of earlier decided 14 months. Next day, Mr. Shiv presented the revised project milestone to BAG members. He told them that in order to meet the deadline, the members were expected to work on week-ends till the completion of the project. Along with that, they were also expected to maintain their earlier standards of delivery time and quality for the normal trouble-shooting and internal advisory work. Mr. Shiv also pointed out that anyone whose performance did not meet the expectations would be subjected to formal disciplinary action. The meeting ended without any member commenting on Shiv’s ideas, although Mr. Shiv heard a lot of mumbling in the corridor. Over the week, Shiv noticed that the members seemed to avoid him and he had to make extra effort to get ideas from them. After a fortnight Shiv reviewed the attendance register and found the Mr. Lal, an old time member, had not come during the week-ends and certain decisions were held up due to lack of inputs from Mr. Lal. Mr. Shiv issued a written reprimand to Mr. Lal. He was speechless on receiving the reprimand but kept silent. It has been three days since that incident. Some of the senior members had put in request for transfer to other business units. It was rumoured that four problems, the unit level managers would put up a request for help to BAG. The problems ranged from installation of internal MIS systems, to financial advice related to leasing of equipment, to handling of employee grievances. Over a period of 20 years, Teknik’s revenues grew from 100 crore 10,000 crore with guidance of BAG and due to Mr. Tekinwala’s vision. Given its reputation in the industry, many people wanted to start their careers in BAG. Often young MBAs fresh out of business schools would apply. However their applications used to be rejected by Mr. Teknikwala, who had a preference for people with extensive industry experience. Things changed after the unfortunate demise of Mr. Teknikwala. His daughter Miss. Teknikwali took up the family business. She was an MBA from one of the premier business schools, and was working in a different company when Mr. Tekinwala passed away. She preferred that BAG developed new ideas and therefore inducted freshly graduated MBAs from premier business schools. She personally supervised the recruitment and selection process. Now the entire group constituted of 50 specialists, out of which 35 were the old time members. She also changed the reporting relationships in the BAG group with some of the older members being made to report to the new members. In IT team, Mr. Shiv, a newly recruited MBA, was made in-charge. For the older members it was a shock. However, as most of them were on the verge of retirement, and it would be challenging to search for new jobs while competing with younger professionals, they decided to play along. After one month, all business units were caught up in the ERP fever. This was an idea pushed by Ms. Teknikwali who the need the need to replace the old legacy systems with latest ERP system integrating all the units of Teknik. This was heavily influenced by her experience in the previous where an ERP system was already up and running. Therefore she was not aware of the difference between installing an ERP system and working on an already installed one. The ERP mplementation in Teknik Group required extensive coordination with senior level managers of senior legal experts had agreed to an offer from a law firm. Other senior members would sporadically come in late to work, citing health reasons. Almost all senior members now wanted a weekly work-routine to be prepared and given to them in advance so that they could deliver as per the schedule. This insistence on written communication was a problem as urgent problems or ad-hoc requests could not be foreseen and included. Also normal services to other business units were being unattended to, and there were complaints coming from the unit heads.Which of the following could have been a better response of Mr. Shiv to Ms. Teknikwali’s request to re-schedule the ERP implementation?
45. How should Mr. Shiv cope with the situation now? Choose the best option, considering Mr. Shiv’s career would be at stake if the ERP project fails, and assuming that for carrying out the options, he has the necessary authority to do so.
46. Of all the problems being faced in BAG, which of the following is neither discussed nor hinted at?
47. After her father’s demise, the best way Ms. Teknikwali could have gone about dealing with BAG group would have been to:
48. It can be inferred from the above case that implementation of an ERP package in an organization requires creation of a team that has:
49. on the basis of the information given in the following case.Vivekananda Memorial Elocution Competition (VMEC) in Viswavijay Public School (VPS) has a history of forty years. Apart from the founder’s day and annual day celebrations, it is the most important event of the school. In recent times, due to the increased popularity of reality shows on television channels, and for various other reasons, the elocution competition lost its appeal. Interest of both students and parents has been eroding over a period of time. To ensure sufficient audience, Mr. Ivan, Head of English Department, introduced choral recitation for junior section as a part of elocution competition. Three classes, each consisting of forty students, get short- listed for the final performance of choral singing on the day of VMEC. Most of the parents and family members of these students attend the function to encourage them. This initiative increased the number of people attending the elocution competition. Some teachers are unhappy with the emphasis given on the elocution competition, since they are expected to be present at the school on the day of competition, which normally happens on a weekend to accommodate the working parents. The teachers were not granted leave on the day of VMEC and they used to be unhappy regarding this aspect.Ms Shabina, the principal of VPS, is aware that some of her teachers are unhappy. She wants to be seen as fair and just. Which option is the best one that she should exercise?
50. A group of unhappy teachers have come up with a list of action plans for the consideration of their colleagues. The action plans are listed below. I. Exposing Mr. Ivan’s intentions behind the inclusion of choral recitation. II. Conduct an open house discussion to gauge the unhappiness and to identify possible solutions. III. Introduce music and dance competition in same format as elocution competition IV. Demand compensation for their work on the day of VMEC. Mr. Zacharia, one of the senior teachers and a well wisher of VPS, is asked to go through the action plans and make recommendations that benefits VPS the most. He would recommend:
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