Practice Test on Decision Making for XAT 2017 Preparation for CAT & MBA Exams

Question 1

Answer 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?

Question 2

Answer 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.

At the Disciplinary Committee meeting, members came up with the following suggestions.
Which of the following suggestions would harm the party, the least?

Question 3

Answer 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.

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.

I. Mr. Loyal’s candidature in the upcoming election will adversely impact NPP’s chances. Hence, the party should not nominate him.
II. The party should call a press conference to disown Mr. Loyal. This would enhance the party’s image.
III. The party would not be able to take any strong disciplinary action against Mr. Loyal, if he gets re-elected.
IV. I have a lot of goodwill and significant followers in the constituency,
V. None of my close relatives are into active politics.
Which of the following combinations would best strengthen the claim of Mr. Opportunist?

Question 4

Answer 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.

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?

Question 5

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:
I. Replacing electricity source for street lights with solar panels.
II. Replacing the existing buildings with environment friendly buildings.
III. Organizing a seminar on ‘Towards a Sustainable Future’ involving all students, staff, and experts from around the country.
IV. Introducing a compulsory course on sustainability to increase awareness among students.
V. 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?

Question 6

Chatterjee, the MLA of Trikathapur, owes his election success to his close friend andbusinessman Ghosh. The victory had appeared unlikely for Chatterjee after the arrival ofBhowmick, a budding politician with hordes of money. However, his clean image along withGhosh’s money ensured Chatterjee’s resounding victory.

After the elections, Ghosh requested Chatterjee to sanction the land adjoining his factory,for expansion. However, the requested government land was a green belt reducing harmful pollution from the factory.
Which of the following is the BEST option for Chatterjee in these circumstances?

Question 7

Chatterjee, the MLA of Trikathapur, owes his election success to his close friend andbusinessman Ghosh. The victory had appeared unlikely for Chatterjee after the arrival ofBhowmick, a budding politician with hordes of money. However, his clean image along withGhosh’s money ensured Chatterjee’s resounding victory.

Inspired by Bhowmick’s manifesto, Chatterjee is contemplating a green policy which canadversely affect Ghosh’s business interest.
Which of the following actions from Ghosh is likely to convince Chatterjee NOT to pursuethis policy?

Question 8

Answer 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:
I. Organic vegetables might be a big success at Connaught place but awareness about organic vegetables is low among Panipat customers.
II. The Connaught place model can be implemented in Panipat provided the business is prepared to face the consequences.
III. Many high end restaurants in Panipat use organic vegetables. So, using organic vegetables will not be a differentiating factor.
IV. Selling prices of their dishes in Panipat are significantly lower. Using organic vegetables will bring down profits.
V. 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?

Question 9

Answer 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 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?

Question 10

Answer 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.

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 realized 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?