XAT Premises Practice Questions With Solutions

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XAT Decision Making Premises Practice Questions

InstructionThese instructions are applicable only to questions 1 to 3
Instructions

Read the following scenario and answer the THREE questions that follow.

Mr. Singh lived in a sprawling housing society. He employed two part-time domestic helps, Vimla and Sharda. Vimla was responsible for cleaning and dusting, while Sharda took care of cooking.

Once Sharda fell ill and consequently took leave for three days. When Sharda returned to work, she learned that Mr. Singh’s gold ring, a gift from his mother, was missing. Suspecting theft, Mr. Singh had terminated Vimla. Mr. Singh asked Sharda to take additional responsibility of cleaning the house, along with an offer to double her salary. Sharda accepted the offer as her previous two jobs were lost due to frequent health-related absences. She was struggling to make ends meet; this offer would go a long way to help her.

Next day, while cleaning under the dressing table, Sharda found the gold ring. Overjoyed, Mr. Singh expressed his gratitude by presenting Sharda a reward of one thousand rupees! However, he made no mention of reinstating Vimla.

Question 1.

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Sharda was contemplating whether she should inform Vimla that she found Mr. Singh’s ring.
Which of the following considerations will BEST dissuade Sharda in sharing the information about the ring with Vimla?

Question 2.

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Two months passed, and owing to Sharda’s improved health and dedication, Sharda started working in three more houses. However, Vimla was dismissed from her jobs in two more houses primarily due to the ring incident. News of the discovery of the lost ring had not become public, and Sharda wanted to help Vimla. Sharda is contemplating over possible actions.
Which of the following actions, by Sharda, will BEST help Vimla?

Question 3.

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The news of the discovery of the lost ring eventually became public. The domestic helps in the society were chagrined by the treatment meted out to Vimla and the fact that the news of the discovery was not made public immediately. They wanted to ensure that they would not get targeted every time if something goes missing.
Which of the following policy options will BEST minimize the chance of employers suspecting their domestic workers of theft in the future?

InstructionThese instructions are applicable only to questions 4 to 6
Instructions

Read the following scenario and answer the THREE questions that follow.

In Symbolis, an upcoming medium sized IT services organization, only 1% of the employees were awarded an annual performance bonus. This annual performance bonus was decided by a committee formed of different functional heads. When Ms. Nalini Kattakayam received the annual bonus for the first time in her five years at Symbolis, Ms. Shalini Sampath, a colleague with seven years of tenure at Symbolis, told Nalini that this annual bonus was less a reflection of Nalini’s performance and more a recognition of those who have fostered a strong rapport with the powers that be. Incidentally, Shalini had never received any performance bonus in her tenure at the company.

Question 4.

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Shalini’s comments deeply hurt Nalini, especially since she had always considered Shalini to be a close friend. Nalini felt like declining the bonus, given her respect for and relationship with Shalini.
Which of the following reasons, if true, will BEST dissuade Nalini from declining the bonus?

Question 5.

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Since receiving the performance bonus, Nalini noticed a change in how her teammates behaved with her; they appeared indifferent towards her. Although there were no major issues, Nalini could not help but sense that her teammates began to perceive her as having a closer relationship with the top brass, following her recent accomplishment. Nalini assumed that her teammates might be influenced by Shalini; consequently, they seemed to be avoiding informal interactions with her.
As Nalini had to rely on the support of her teammates, what could Nalini BEST do to normalize her relationship with them?

Question 6.

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A significant project recently arrived at Symbolis, and Nalini was chosen to spearhead it. She was given the autonomy to create her own team to collaborate and drive this project to success. Nalini wanted to build a team where each of the team members worked with great comradery. As Shalini had previous experience of working with the client, Nalini offered her to join the team. However, Shalini expressed her willingness to work on the project only on the condition that she would be appointed as a team leader.

Nalini was aware that the client was very difficult to work with. Of the three previous projects with the client, only the one, where Shalini was a team member, was successfully completed.
What should be the BEST course of action for Nalini regarding the inclusion of Shalini in the team?

InstructionThese instructions are applicable only to questions 7 to 9
Instructions

Read the following scenario and answer the THREE questions that follow.

DeepSea is a natural gas extraction company that retrieves natural gas from rock formations beneath the seabed. This gas is then transported through its extensive pipeline network to a bottling plant, located at the sea surface, for processing. The gas in rock formations is pressurized, enabling it to flow to the surface and reach the bottling plant. Yet, excessive pressure can cause bursts in the pipeline, leading to uncontrolled gas release, known as blowout. A blowout carries a staggering cost, encompassing not only environmental damage but also reputation loss and financial losses totaling crores of rupees. Additionally, the impacted section of the pipeline requires a complete replacement.

Industry safety regulations divide the pipeline network into three levels: Level 3 is the part under the seabed, Level 2 is the part above the seabed but in the deep sea, while Level 1 is near the surface. The safety regulations require multiple blowout preventer valves, from now on simply referred to as valves, to be placed at the three different levels of the pipeline network. The valves are normally kept closed, but when the pressure in any part of the pipeline rises beyond a critical level, nearby valves are opened remotely to release the pressure in a controlled manner to prevent blowout. The number of valves across the pipeline helps localize the pressure release, with a greater number of valves providing a backup mechanism, helping in improving pressure localization in case of a blowout. Given that the valves themselves can occasionally malfunction and not release the pressure when needed, using a higher number of valves ensures that a malfunctioning valve can seek the safety of a nearby functioning valve.

A valve can malfunction in two ways: it may fail to release pressure when needed, as previously mentioned, or it can leak gas during regular operation, resulting in unwanted losses. When a valve malfunctions, it necessitates manual replacement.

In the DeepSea Network, 30% of the valves are located at Level 3, which is the deepest level. The remaining valves are evenly distributed between the top two levels. These valves are critical to ensuring safety and are exclusively supplied by GoValve, a highly specialized manufacturer that holds a monopoly in the country’s market.

Question 7.

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GoValve has recently proposed a maintenance package for the valves to DeepSea, which includes a clause that whenever a valve at Level 3 malfunctions, all valves at that level will be replaced. Accepting the clause will cost a significant premium. The management of DeepSea have the following pieces of additional information under consideration:

A. The valves are known to be prone to malfunction.
B. Any malfunction in one valve often results in leakage from the neighboring valves.
C. GoValve is ready to negotiate a discount if the clause is accepted.
D. Replacing the valves at Level 3 is a very difficult job, which is best done by GoValve.
E. The chances of pressure buildups are higher near the seabed.

Which of the following combinations, of the above pieces of additional information, will help the management of DeepSea the MOST in accepting the clause?

Question 8.

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A startup, SafeValve, has started importing a technologically superior brand of valves from abroad, which boasts a significant reduction in gas leakage. SafeValve has established a large inventory of these imported valves but is struggling to gain foothold in the local market. An NGO, working for the protection of marine lives, has appealed to DeepSea to replace their existing valves with the product from SafeValve. However, the installation of this new valve will require substantial modification in the pipeline, entailing unknown challenges in installation and maintenance.

Which of the following reasons, if TRUE, can DeepSea BEST cite to publicly reject the appeal?

Question 9.

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A startup, SafeValve, has started importing a technologically superior brand of valves from abroad, which boasts a significant reduction in gas leakage. An update to industry safety regulations has come out, which allows a lower number of valves in a pipeline network, if technologically superior valves, similar to those imported by SafeValve, are used for the entire network.

DeepSea is aware that the more the number of valves, the better is DeepSea’s ability to contain blowouts. However, a higher number of valves increases the chance of a leakage. Therefore, DeepSea is contemplating a proposal to reduce the number of valves to almost half, by replacing the existing valves (by GoValve) with the valves sold by SafeValve. A team, tasked with evaluating the proposal, has made some observations, listed below.

Which of the following observations is the MOST helpful in REJECTING the proposal?

InstructionThese instructions are applicable only to questions 10 to 12
Instructions

Read the situation below and answer the 3 associated questions:
A Multinational Company (MNC) sources pristine natural spring water from Bori, a village in Satpura mountains. The unprocessed natural spring water is directly bottled by the MNC. The company brands it as “Natural Spring Water” and sells at 50% premium vis-a-vis other brands that sell processed water.

The local panchayat, under the Panchayati Raj Act, 1992 controls the spring water usage. Hence, the company signed a 30-year contract with the panchayat for exclusive access to the spring water for business purposes. This contract contributes 50% to the panchayat’s revenues besides providing 250 jobs in the panchayat. The spring also meets domestic and agricultural needs of the people of Bori and the surrounding villages.

Question 10.

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Chanchala owns a small parcel of farming land in Bori. She grows cannabis in some part of her land and earns a significant amount of money from it. Soon after the bottling plant was commissioned, Chanchala, instigated by a landlord with a vested interest, starts accusing the MNC of robbing her of water and impacting her livelihood. She threatens to take the MNC to court.
Which of the following options will BEST solve the MNC’s problem?

Question 11.

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The MNC has spotted traces of chemicals in their fortnightly water quality analysis. The MNC realizes that this is due to the contaminated agricultural runoff, flowing into the spring from the nearby fields where farmers use pesticides and fertilizers.
This requires an immediate solution. Which of the following options will BEST resolve the situation for the MNC?

Question 12.

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The MNC is concerned about chemical contamination of the natural spring water due to the agricultural runoff with pesticides and fertilizers. The MNC is looking for a sustainable solution to this contamination.

Which of the following courses of action will BEST solve the issue?

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InstructionThese instructions are applicable only to questions 1 to 3
Instructions

Read the situation below and answer the 3 associated questions:
Two industrial towns, Jayanagar and Ramnagar, about 15 kms. apart, are similar in land area, population, ethnic diversity and per capita incomes.
Jagdeep Singh owns a bakery named Le Baguette in Jayanagar. He specializes in croissants, masala bread and whole wheat bread; eggless cakes are also a favorite.
Among the four bakeries in Jayanagar, Jagdeep’s bakery with a market share of 30% is second only to the oldest Le Croissant bakery whose market share is 40%. Le Croissant commands a loyal customer base and does not offer eggless varieties.

Question 1.

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Jagdeep has decided to open a branch in Ramnagar. Which of the following facts about Ramnagar will BEST support his decision?

Question 2.

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Jagdeep wishes to open a 100% eggless branch in Ramnagar. To explore feasibility, he collected the following facts:
1. Eggless products account for 30% of Le Baguette’s sales.
2. At least 20% of all bakery sales in Ramnagar is from eggless products.
3. The eggless varieties of Le Baguette contain minute traces of egg.
4. Le Baguette currently makes 3% of its revenue from Ramnagar customers and all of it comes from eggless products.
5. Le Croissant’s Ramnagar branch struggles with a market share of 10%.

From the combinations below, in the DESCENDING order of effectiveness, choose the one that BEST supports Jagdeep’s decision.

Question 3.

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From a newspaper, Jagdeep has learnt that Americans use their own ovens to bake ready-to-bake products, sold by some bakeries. This idea is apparently catching up in Indian metros as well.
Jagdeep wants to try this out in his bakery. He has gathered the following facts:
1. US bakeries that also sell ready-to-bake products earned higher revenues compared to those that do not.
2. Around 7% of Jagdeep’s regular customers own baking ovens in their homes.
3. The sale of baking ovens in India is forecast to increase by 12% every year, for the next three years.
4. 50% of Jagdeep’s regular customers are fulltime working couples.
5. In Indian metros, ready-to-bake products give higher profit margins compared to finished products.

Select the BEST of the following sequences of the above facts, in DESCENDING order of effectiveness, to support Jagdeep.

InstructionThese instructions are applicable only to questions 4 to 6
Instructions

Read the situation below and answer the 3 associated questions:
A powerful, intelligent king Vanamali once ruled over an ancient kingdom, Vanarajya. The kingdom was known for its high mountains and sprawling plains, and ninety percent of its land was under forest cover. Trade in forest produce was the mainstay of its economy, supported by subsistence agriculture.
With the increase of population, over time the forest in the plains was cleared for agriculture. The forest in the mountains continued to supply nutrient-enriched water and abundant forest produce to the plains. As a result, agricultural yields were bountiful. The plains prospered as compared to the mountains.

Question 4.

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The increasing prosperity of the plains people tempted those in the mountains to divert forest land for agriculture. Vanamali was afraid that expansion of agriculture would result in deforestation of the mountains.

Which of the following is the BEST course of action for Vanamali to conserve the mountain forest?

Question 5.

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Vanamali, afraid of further deforestation, issued a diktat against felling of trees in the mountains. In due course, thanks to the booming agriculture, the king along with plains people began to prosper. However, mountain people became relatively poor, thanks to Vanamali’s diktat.

Which of the following options should mountain people choose to BEST protect their long-term interests?

Question 6.

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The village elders of the mountains had informed Vanamali about the presence of a precious metal in abundance under a large part of the forest. They pleaded with him to repeal his diktat and permit felling of trees for mining.
Vanamali knew that the precious metal would make his kingdom prosper. However, he was worried that mining would reduce the flow of nutrients, water and forest produce to the plains.
Vanamali’s advisor Vanapandit presented the following action plans for his consideration:
1. Repeal the forest diktat and charge hefty royalty for mining in the mountains
2. Permit mining in the mountains and enforce rainwater harvesting in the plains
3. Permit mining in the mountains and begin afforestation in the plains
4. Continue with the forest diktat in the mountains
5. Permit limited mining in rotation but maintain the forest diktat in the rest of the mountains

Which of the following sequences of action plans, in the DESCENDING order of their ability to contribute to Vanarajya’s sustainable prosperity, will be the MOST appropriate for Vanamali?

Question 7.

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Analyse the following caselet and answer the question that follows:

Genius Consulting is a boutique consulting firm started by Shirish, Balram, Rahman and Xavier, four friends from a premier business school. They committed themselves to abide by two principles: a) not to indulge in anything unethical and b) share earnings equally.

Genius Consulting could not get a significant project till the following year, when they managed a big one after Rahman’s father referred their firm to his top management. Convinced of the team’s talent following an impressive presentation, the top management awarded them the project even though six other referred teams made presentations.

The day following the presentations, they met to decide the way forward for the organization. Which of the following choices would be the most appropriate for Genius Consulting?

InstructionThese instructions are applicable only to questions 8 to 9
Instructions

Analyse the following caselet and answer the questions that follow:

The City of Yashmund is served by licensed taxis operating on officially sanctioned metered rates and driven by licensed drivers who do not own the taxis but pay a monthly rent to the taxi-owners. Shailesh Nair, the mayor of Yashmund, perceived that most of these taxis do not offer sufficient comfort and safety to passengers.

Question 8.

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The Mayor wants the owners and drivers to care about comfort.
Which of the following decisions, IF TAKEN, is MOST LIKELY to increase the comfort levels of passengers?

Question 9.

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The mayor wants to involve the car owners in finding a solution to the problem of comfort and safety. He is concerned that the customers may not be willing to pay more for safety.

Which of the options below is MOST LIKELY to convince the owners?

InstructionThese instructions are applicable only to questions 10 to 11
Instructions

Analyse the following caselet and answer the question that follow:

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

Question 10.

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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 11.

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Inspired by Bhowmick’s manifesto, Chatterjee is contemplating a green policy which can adversely affect Ghosh’s business interest.

Which of the following actions from Ghosh is likely to convince Chatterjee NOT to pursue this policy?

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