XAT 2025 Decision Making Practice Questions & Answers

The XAT 2025 Decision Making practice questions & answers are an invaluable resource for aspirants gearing up for the XAT 2025 exam. The Decision Making section is a unique feature that sets the XAT apart from other management entrance exams. Unlike sections that test quantitative ability or verbal skills, this part focuses on evaluating candidates' ethical and moral judgment. This section aims to assess how effectively candidates can navigate various decision-making scenarios. Typically, this section comprises 20-25 questions, predominantly based on business situations, everyday challenges, and problem-solving tasks. However, there may be variations, with some questions purely testing logical reasoning. The following article covers some of the most commonly asked questions for the Decision Making section for XAT 2025.

Also Read: XAT 2025 Decision Making (DM) Important Topics

Overview of XAT 2025 Decision Making Questions

The Decision-Making section of the XAT exam may appear straightforward, but it is one of the most intricate and essential aspects of the XAT exam. It primarily involves three types of questions:

• Scenario-Based Questions: present a business or real-life situation where candidates must select the most appropriate solution from a set of options. While all choices may seem viable, the best one considers ethics, feasibility, and potential impact. 
• Data-Based Questions: involve interpreting charts, graphs, or data to make informed decisions. 
• Logical Reasoning Questions: Though less common, require candidates to apply logical thinking to arrive at the correct decision.

XAT 2025 Decision Making Practice Questions with Answers

The Decision-Making section of the XAT exam is not just another test component; it is crucial for evaluating your managerial decision-making skills. While it may appear straightforward, it is one of the most intricate and essential aspects of an MBA. Candidates are advised to review the following set of questions and answers to familiarize themselves with the types of questions likely to appear in the XAT Decision-Making section.

XAT Decision Making Question 1

Despite a commitment to maintaining high product quality, an increase in wooden product production has led to numerous complaints about the product's quality. Mr. Rohan, preoccupied with critical issues in the shipping department, is concerned about these quality complaints.

Question: If you were in Mr. Rohan’s position, what action would you take?

A. Reduce the production level of wooden products. 

B. Change all suppliers due to their provision of low-quality wood. 

C. Prioritize addressing product quality issues over shipping problems. 

D. Consult with suppliers about wood quality and have Gautham devise a plan to resolve quality issues. 

E. Terminate Gautham’s employment for inadequate performance.

Answer: D

Explanation: Options A, B, and C do not address the root of the quality issue effectively, while option E is an extreme measure. Option D is the best approach, as it involves assessing the wood quality with suppliers and developing a solution with Gautham’s help, ensuring a comprehensive resolution to the quality concerns.

XAT Decision Making Question 2

Situation: Mr. Shivakumar, a social science teacher and self-taught engineer, proposes the construction of two large dams to address irrigation problems in his district. Despite his lack of professional experience in construction, the proposal excites the district's residents.

Question: What is the most appropriate action for the district collector?

A. Commend Mr. Shivakumar for his community service. 

B. Test the feasibility of the plan on a smaller scale. 

C. Accept Mr. Shivakumar’s proposal based on its plausibility. 

D. Arrange for the plan’s immediate and full-scale implementation. 

E. Reject the proposal due to Mr. Shivakumar’s inexperience.

Answer: B

Explanation: Although Mr. Shivakumar’s proposal is innovative, his lack of experience warrants a cautious approach. Option B allows experts to evaluate the plan’s feasibility on a smaller scale before deciding on full implementation, making it the most prudent choice.

XAT Decision Making Question 3

Situation: Malibaba, a Japanese e-commerce company, is considering expanding into one of three Asian countries: India, Sri Lanka, or Pakistan. Each country presents different market conditions and challenges.

Question: Considering the board's preference for India and some members' interest in Sri Lanka, which reason would best convince others to invest in India?

A. India’s market size greatly exceeds that of Sri Lanka. 

B. The cost of setting up business per customer in India is lower than in Sri Lanka, despite incentives. 

C. The incentives in Sri Lanka are temporary, and taxes will equalize with India over time. 

D. Options A and B. E. All of the above.

Answer: B

Explanation: Despite Sri Lanka’s incentives, the lower setup cost per customer in India makes it a more financially viable option. This economic advantage outweighs the short-term benefits offered by Sri Lanka.

XAT Decision Making Question 4

Situation: Kamal’s fruit and juice shop, known for high-quality produce, offers a 10% discount to loyal customers. His sons, Ajay and Vijay, who are inexperienced in business, are considering whether to continue this discount.

Question: What reason would most effectively convince Kamal to stop offering discounts?

A. Customers misuse the discount by buying fruits for others. 

B. Discounted customers frequently shop elsewhere at market prices. 

C. Customers do not acknowledge Kamal’s gesture or recognize him. 

D. Options A and C. E. Options A and B.

Answer: E

Explanation: If customers who receive discounts are not loyal and buy from other stores or misuse the discount, it undermines the purpose of offering it. Hence, both reasons A and B support discontinuing the discount.

Also Read:XAT 2025 QA & DI Practice Questions & Answers

XAT Decision Making Question 5

Situation: Balu, a software engineer, developed a software to streamline leave processes. His manager, Amit, plans to present it as his own work to improve his performance review, while offering Balu a promotion and raise in return.

Question: What is the best course of action for Amit?

A. Present the software as his own.
B. Present it as the work of his team.
C. Present the software jointly with Balu to highlight both their contributions.
D. Allow Balu to present the software himself. E. Not present the software at all.

Answer: C

Explanation: Presenting the software together with Balu avoids the risk of misrepresenting the work and also acknowledges both Amit’s and Balu’s contributions, benefiting both parties.

XAT Decision Making Question 6

Situation: Amit has proposed to present Balu’s software as his own, promising Balu a promotion and raise in exchange.

Question: What should Balu do?

A. Allow Amit to present the software as his own. 

B. Report Amit’s proposal to his superior, Mandar. 

C. Leave the company. D. Reject Amit’s proposal outright. 

E. Consult with colleagues before deciding.

Answer: D

Explanation: Option D is the most appropriate response, as it maintains Balu’s integrity without escalating the situation or leaving the company. Reporting to a superior or consulting colleagues may complicate matters further.

XAT Decision Making Question 7

Situation: Amit, a manager at a software company, is under significant pressure due to an upcoming performance review. His team has failed to meet the set targets for the year, which has put his position at risk. Amit is considering using a software developed by Balu, one of his team members, as part of his performance review. Although the software was created by Balu during his free time, Amit plans to present it as his own work to improve his review outcome.

Question: What is the primary motivation behind Amit’s proposal to Balu?

A. Amit’s greed. 

B. Amit’s failure to meet targets. 

C. Amit’s financial problems. 

D. Balu’s financial situation. 

E. Balu’s software development being outside his work scope.

Answer: B

Explanation: Amit’s motivation stems from his performance review and unmet targets, driving his desire to use Balu’s software to enhance his review outcome.

Also Read: XAT 2025 QA & DI Practice Questions & Answers

XAT Decision Making Question 8

Situation: The company has faced several instances where employees have felt compelled to misrepresent or claim credit for work that was not their own, primarily due to high-pressure performance expectations and unclear policies. The management is now seeking ways to prevent such issues in the future and is considering several measures.

Question: What should the company do to prevent similar issues?

A. Prohibit overtime work for employees. 

B. Monitor daily employee activities. 

C. Avoid setting unrealistic performance targets. 

D. Clearly define employee roles. 

E. None of the above.

Answer: E

Explanation: None of the suggested measures directly address the root cause of the issue. More effective solutions might involve ethical practices and clear policies regarding intellectual contributions and performance expectations.

XAT Decision Making Question 9

Situation: Ayush, a project manager, is evaluating whether to continue with a controversial commercial for Kide, despite complaints about its misogynistic content.

Question: How should Ayush handle the situation?

A. Take no action until further study is conducted. 

B. Discontinue the current message and develop a new campaign. 

C. Slightly modify the current message. 

D. Stick with the current message due to its success. 

E. Revert to a previous, less successful message that was not controversial.

Answer: A

Explanation: Given the risk of losing market position and the ongoing complaints, Ayush should thoroughly analyze the situation before making any changes, as altering the message might have unintended consequences.

XAT Decision Making Question 10

Situation: Neha Singh, the marketing head, dislikes the Kide commercial and requests Ayush to change it. Ayush is concerned about the potential impact on Kide’s market position.

Question: What is the best course of action for Ayush?

A. Implement Neha’s suggestion for a new message. 

B. Discuss his concerns with the CEO. 

C. Begin working on a new message while addressing his concerns with Neha. 

D. Send an anonymous email to senior officials expressing his concerns. 

E. Slightly modify the current message to reduce offensiveness.

Answer: C

Explanation: Option C allows Ayush to address his concerns while respecting Neha’s position. It balances the need for a potential message change with his reservations about the impact on Kide’s market standing.

Also Read: XAT 2025 VALR Practice Questions & Answers

Effective Strategies for XAT Decision Making Section

The XAT Decision-Making section is known for its complexity and the nuanced thinking it demands. Excelling in this section requires a strategic approach, combining practice, precision, and a solid understanding of ethical considerations. Here are some key strategies to help you master this challenging part of the XAT exam:

• Practice with Previous Year’s Papers: Reviewing past XAT papers is essential for familiarizing yourself with question patterns and scenarios. Regular practice enhances your ability to approach these questions confidently and effectively.
• Enhance Accuracy with Test Series: Participating in XAT-specific mock tests improves both speed and accuracy. These tests simulate the actual exam environment, helping you gauge your decision-making abilities under timed conditions.
• Use Quality Study Material: Comprehensive preparation requires the right study resources. Focus on materials that thoroughly cover the XAT syllabus and emphasize section-specific topics, ensuring you are well-prepared for the Decision-Making section.
• Practice Case Studies: To sharpen your decision-making skills, practice analyzing business case studies from various sources. Evaluate different business situations and their potential outcomes.
• Improve Logical Reasoning Skills: Some questions demand logical thinking. Enhance this skill by solving a variety of logical reasoning problems, which will better equip you for these challenges.
• Stay Updated with Current Affairs: A solid understanding of the current business landscape and socio-political issues can improve your decision-making. Regularly reading newspapers and business magazines is beneficial.
• Understand Ethics and Morality: Many scenarios involve ethical dilemmas, making a strong grasp of business ethics and morality crucial. Reading about ethical cases in business can guide you in choosing the right options during the exam.

The XAT 2025 Decision Making Practice Questions & Answers in this article are crafted to familiarize you with the types of questions you may encounter on the exam. The XAT Decision Making section is a unique and challenging part of the exam that demands careful thought, ethical judgment, and logical reasoning. By practicing with the questions provided, you can sharpen your decision-making skills and boost your confidence. Remember, consistent practice and a clear understanding of ethical principles are key to excelling in this section. As you prepare, focus on analyzing each scenario critically and choosing the most balanced and thoughtful solutions.

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