1. In order to resolve the conflicting preferences, one of Dev’s friends suggested Dev, his family members and the HR manager to identify their most and the least preferred candidates without considering the concerns of other stakeholders. I. Dev’s most and least preferred candidates: Bal Singh and Chetan respectively II. Family members’ most and least preferred candidates: Bal Singh and Chintan respectively III. HR manager’s most and least preferred candidates: Chethan and Bal Singh respectively Which of the above three statements is/are in conformity with the information provided in the passage?






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MCQ->In order to resolve the conflicting preferences, one of Dev’s friends suggested Dev, his family members and the HR manager to identify their most and the least preferred candidates without considering the concerns of other stakeholders. I. Dev’s most and least preferred candidates: Bal Singh and Chetan respectively II. Family members’ most and least preferred candidates: Bal Singh and Chintan respectively III. HR manager’s most and least preferred candidates: Chethan and Bal Singh respectively Which of the above three statements is/are in conformity with the information provided in the passage?....
MCQ-> on the basis of the information given in the following case.Dev Anand, CEO of a construction company, recently escaped a potentially fatal accident. Dev had failed to notice a red light while driving his car and attending to his phone calls. His well-wishers advised him to get a suitable replacement for the previous driver Ram Singh, who had resigned three months back. Ram Singh was not just a driver, but also a trusted lieutenant for Dev Anand for the last five years. Ram used to interact with other drivers and gathered critical information that helped Dev in successfully bidding for different contracts. His inputs also helped Dev to identify some dishonest employees, and to retain crucial employees who were considering attractive offers from his competitors. Some of the senior employees did not like the informal influence of Ram and made it difficult for him to continue in the firm. Dev provided him an alternative job with one of his relatives. During the last three months Dev has considered different candidates for the post. The backgrounds of the candidates are given in the table below. Dev is primarily looking for a stable and trustworthy driver, who can be a suitable replacement for Ram. His family members do not want Dev to appoint a young driver, as most of them are inexperienced. Dev’s driver is an employee of the firm and hence the appointment has to be routed through the HR manager of the firm. The HR manager prefers to maintain parity among all employees of the firm. He also needs to ensure that the selection of a new driver does not lead to discontent among the senior employees of the firm. From his perspective, and taking into account the family’s concerns, Mr. Dev would like to have
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MCQ-> Read carefully the four passages that follow and answer the questions given at the end of each passage:PASSAGE I The most important task is revitalizing the institution of independent directors. The independent directors of a company should be faithful fiduciaries protecting, the long-term interests of shareholders while ensuring fairness to employees, investor, customer, regulators, the government of the land and society. Unfortunately, very often, directors are chosen based of friendship and, sadly, pliability. Today, unfortunately, in the majority of cases, independence is only true on paper.The need of the hour is to strengthen the independence of the board. We have to put in place stringent standards for the independence of directors. The board should adopt global standards for director-independence, and should disclose how each independent director meets these standards. It is desirable to have a comprehensive report showing the names of the company employees of fellow board members who are related to each director on the board. This report should accompany the annual report of all listed companies. Another important step is to regularly assess the board members for performance. The assessment should focus on issues like competence, preparation, participation and contribution. Ideally, this evaluation should be performed by a third party. Underperforming directors should be allowed to leave at the end of their term in a gentle manner so that they do not lose face. Rather than being the rubber stamp of a company’s management policies, the board should become a true active partner of the management. For this, independent directors should be trained in their in their in roles and responsibilities. Independent directors should be trained on the business model and risk model of the company, on the governance practices, and the responsibilities of various committees of the board of the company. The board members should interact frequently with executives to understand operational issues. As part of the board meeting agenda, the independent directors should have a meeting among themselves without the management being present. The independent board members should periodically review the performance of the company’s CEO, the internal directors and the senior management. This has to be based on clearly defined objective criteria, and these criteria should be known to the CEO and other executive directors well before the start of the evolution period. Moreover, there should be a clearly laid down procedure for communicating the board’s review to the CEO and his/her team of executive directors. Managerial remuneration should be based on such reviews. Additionally, senior management compensation should be determined by the board in a manner that is fair to all stakeholders. We have to look at three important criteria in deciding managerial remuneration-fairness accountability and transparency. Fairness of compensation is determined by how employees and investors react to the compensation of the CEO. Accountability is enhanced by splitting the total compensation into a small fixed component and a large variable component. In other words, the CEO, other executive directors and the senior management should rise or fall with the fortunes of the company. The variable component should be linked to achieving the long-term objectives of the firm. Senior management compensation should be reviewed by the compensation committee of the board consisting of only the independent directors. This should be approved by the shareholders. It is important that no member of the internal management has a say in the compensation of the CEO, the internal board members or the senior management. The SEBI regulations and the CII code of conduct have been very helpful in enhancing the level of accountability of independent directors. The independent directors should decide voluntarily how they want to contribute to the company. Their performance should decide voluntarily how they want to contribute to the company. Their performance should be appraised through a peer evaluation process. Ideally, the compensation committee should decide on the compensation of each independent director based on such a performance appraisal. Auditing is another major area that needs reforms for effective corporate governance. An audit is the Independent examination of financial transactions of any entity to provide assurance to shareholder and other stakeholders that the financial statements are free of material misstatement. Auditors are qualified professionals appointed by the shareholders to report on the reliability of financial statements prepared by the management. Financial markets look to the auditor’s report for an independent opinion on the financial and risk situation of a company. We have to separate such auditing form other services. For a truly independent opinion, the auditing firm should not provide services that are perceived to be materially in conflict with the role of the auditor. These include investigations, consulting advice, sub contraction of operational activities normally undertaken by the management, due diligence on potential acquisitions or investments, advice on deal structuring, designing/implementing IT systems, bookkeeping, valuations and executive recruitment. Any departure from this practice should be approved by the audit committee in advance. Further, information on any such exceptions must be disclosed in the company’s quarterly and annual reports. 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MCQ-> Read the following passage carefully and answer the questions given below it. Certain words/phrases have been printed in bold to help you locate them while answering some of the questions. Once upon a time, there lived a lion in a forest. A jackal, a crow and a wolf had developed friendship. They knew that the lion was the king of the forest and friendship with such a fierce creature would always help them. To meet their selfish ends, they started obeying and were always at the service of the lion. They didn’t have to make any efforts to search for their food, as the lion gave his leftover meals to them. Moreover, they became powerful as they were next to the king of the forest. One day, a camel, who came from some distant land, lost his way and entered the same forest where these friends lived. In the meantime, these three friends happened to pass the same way that the camel was wandering. When they saw the camel, they realized that he did not belong to their forest. The jackal suggested to his other two friends, “Let’s kill and eat him.” The wolf replied, “It is a big animal. We cannot kill him like this. I think, we should first inform our king about this camel.” The crow agreed with the wolf s idea. All of them went to meet the lion. On reaching the lion’s den, the jackal approached the lion and said, Your Majesty, an unknown camel has dared to enter your kingdom without your consent, Let’s kill him; he could make a nice meal.” The lion roared loudly on hearing this and said, ‘What are you saying ? The camel has come for refuge in ray kingdom. It is unethical to kill him. We should provide him the best shelter. Go and bring him to me,” All of them were dispirited to hear these words from the king. They unwillingly went to the camel and told him about the lion’s desire to meet him, The camel was scared about the strange offer. He thought that his end had come and in a little while he would become the lion’s meal. As he couldn’t even escape, he decided to meet the lion. The selfish friends escorted the camel to the lion’s den. The lion welcomed the camel warmly and assured him of a safe stay in the forest. The camel was totally amazed to hear the lion’s words. He happily started living with the jackal, the crow and the wolf. One day, when the lion was hunting for food, he had a struggle with a mighty elephant. The lion was badly injured in the struggle and became incapable of hunting for his food. Thus the lion had to sustain without food for days. Due to this, his friends too had to go hungry for days as they totally depended on the lion’s kill for their food. But the camel was satisfied grazing around in the forest. All the three friends were worried and discussed the matter among them, As the jackal, the crow and the wolf had set their evil eyes on the camel, they met once again and devised a plan to kill the camel. They went to the camel and said, “Dear Friend, you know our king has not eaten anything for many days now. He is unable to hunt due to his wounds and sickness. Under such circumstances, it becomes our duty to sacrifice ourselves to save the life of our king. Come with us, we will offer our bodies as food for him.” The camel didn’t understand their plan, but innocently nodded in favour of it. All of them approached the lion’s den. First of all, the crow came forward and said, “Your Majesty, I can’t see you like this. So please eat me.” The lion replied, “I would prefer to die than to perform such a sinful deed.” Then, the jackal came forward and said, “Your Majesty, crow’s body is too small for your appetite. I offer myself to you, as it is my duty to save your life.” The lion politely rejected the offer. As per the plan, now it was the wolf’s turn to offer himself to the king. So, the wolf came forward and said, “Your Majesty, jackal is quite small to gratify your hunger. I offer myself for this kind job, Please, kill me and appease your hunger.” But the Lion didn’t kill any of them. The camel, who was watching the whole scene felt reassured of his safety and also decided to go forward and complete the formality. He marched forward and said, “Your Majesty, why don’t you kill me ? You are my friend. Please allow me to offer you my body.” The lion found the offer quite appropriate as the camel himself had offered his body for food. The lion attacked the camel at once, ripped open his body and lore him into pieces. The lion and his friends feasted on the poor camel for days together.‘Why could the lion not hunt anymore ?
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MCQ-> In the annals of investing, Warren Buffett stands alone. Starting from scratch, simply by picking stocks and companies for investment, Buffett amassed one of the epochal fortunes of the twentieth century. Over a period of four decades more than enough to iron out the effects of fortuitous rolls of the dice, Buffett outperformed the stock market, by a stunning margin and without taking undue risks or suffering a single losing year. Buffett did this in markets bullish and bearish and through economies fat and lean, from the Eisenhower years to Bill Clinton, from the l950s to the l990s, from saddle shoes and Vietnam to junk bonds and the information age. Over the broad sweep of postwar America, as the major stock averages advanced by 11 percent or so a year, Buffett racked up a compounded annual gain of 29.2 percent. The uniqueness of this achievement is more significant in that it was the fruit of old-fashioned, long-term investing. Wall Street’s modern financiers got rich by exploiting their control of the public's money: their essential trick was to take in and sell out the public at opportune moments. Buffett shunned this game, as well as the more venal excesses for which Wall Street is deservedly famous. In effect, he rediscovered the art of pure capitalism, a cold-blooded sport, but a fair one. Buffett began his career, working out his study in Omaha in 1956. His grasp of simple verities gave rise to a drama that would recur throughout his life. Long before those pilgrimages to Omaha, long before Buffett had a record, he would stand in a comer at college parties, baby-faced and bright-eyed, holding forth on the universe as a dozen or two of his older, drunken fraternity brothers crowded around. A few years later, when these friends had metamorphosed into young associates starting out on Wall Street, the ritual was the same. Buffett, the youngest of the group, would plop himself in a big, broad club chair and expound on finance while the others sat at his feet. On Wall Street, his homespun manner made him a cult figure. Where finance was so forbiddingly complex, Buffett could explain it like a general-store clerk discussing the weather. He never forgot that underneath each stock and bond, no matter how arcane, there lay a tangible, ordinary business. Beneath the jargon of Wall Street, he seemed to unearth a street from small-town America. In such a complex age, what was stunning about Buffett was his applicability. Most of what Buffett did was imitable by the average person (this is why the multitudes flocked to Omaha). It is curious irony that as more Americans acquired an interest in investing, Wall Street became more complex and more forbidding than ever. Buffett was born in the midst of depression. The depression cast a long shadow on Americans, but the post war prosperity eclipsed it. Unlike the modern portfolio manager, whose mind- set is that of a trader, Buffett risked his capital on the long term growth of a few select businesses. In this, he resembled the magnates of a previous age, such as J P Morgan Sr.As Jack Newfield wrote of Robert Kennedy, Buffett was not a hero, only a hope; not a myth, only a man. Despite his broad wit, he was strangely stunted. When he went to Paris, his only reaction was that he had no interest in sight-seeing and that the food was better in Omaha. His talent sprang from his unrivaled independence of mind and ability to focus on his work and shut out the world, yet those same qualities exacted a toll. Once, when Buffett was visiting the publisher Katharine Graham on Martha’s Vineyard, a friend remarked on the beauty of the sunset. Buffett replied that he hadn't focused on it, as though it were necessary for him to exert a deliberate act of concentration to "focus" on a sunset. Even at his California beachfront vacation home, Buffett would work every day for weeks and not go near the water. Like other prodigies, he paid a price. Having been raised in a home with more than its share of demons, he lived within an emotional fortress. The few people who shared his office had no knowledge of the inner man, even after decades. Even his children could scarcely recall a time when he broke through his surface calm and showed some feeling. Though part of him is a showman or preacher, he is essentially a private person. Peter Lynch, the mutual-fund wizard, visited Buffett in the 1980s and was struck by the tranquility in his inner sanctum. His archives, neatly alphabetized in metal filing cabinets, looked as files had in another era. He had no armies of traders, no rows of electronic screens, as Lynch did. Buffett had no price charts, no computer - only a newspaper clipping from 1929 and an antique ticker under a glass dome. The two of them paced the floor, recounting their storied histories, what they had bought, what they had sold. Where Lynch had kicked out his losers every few weeks, Buffett had owned mostly the same few stocks for years and years. Lynch felt a pang, as though he had traveled back in time. Buffett’s one concession to modernity is a private jet. Otherwise, he derives little pleasure from spending his fabulous wealth. He has no art collection or snazzy car, and he has never lost his taste for hamburgers. He lives in a commonplace house on a tree-lined block, on the same street where he works. His consuming passion - and pleasure - is his work, or, as he calls it, his canvas. It is there that he revealed the secrets of his trade, and left a self-portrait.“Saddle shoes and Vietnam”, as expressed in the passage, refers to: I. Denier cri and Vietnam war II. Growth of leather footwear industry and Vietnam shoe controversy III. Modern U.S. population and traditional expatriates IV. Industrial revolution and Vietnam Olympics V. Fashion and Politics....
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