XAT 2018 Question Paper | XAT BDM

XAT Bussiness Decision Making | XAT 2018 Question Paper

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Read the situation below and answer the questions that follow:

Satyender heads a branch of a Micro-Finance company. The company provides small-size loans catering to rural households. As the head of the branch, he supervises three collection officers - Palani, Sayed, and Godwin. Palani was recently transferred by the company from another branch.

XAT 2018 Question Paper - BDM

Sayed feared Palani's transfer may pull down the performance of the branch, as he felt Palani was transferred due to his poor performance in the previous branch.

Which of the following information will most likely assuage Sayed's fear?
1. In the past 12 years as the head of branch, Satyender has exceeded targets every time.
2. Palani has been a top performer in the organization; his performance has deteriorated only in the last three years.
3. The branch's performance has been good for the past 10 years; Sayed has joined the organization 3 years back.
4. When Sayed joined as a fresher in this branch, others in the branch had feared that he might bring down the performance of the branch.
5. While calculating the branch's performance, the branch head has the choice to exclude new joinee’s performance.
Choice E
While calculating the branch's performance, the branch head has the choice to exclude new joinee’s performance.
XAT 2018 Question Paper - BDM

Three months later, Palani submitted local travel bills to Satyender for reimbursement. Satyender realized that the bill amount was 30% higher than expected.

Which of the following options, if true, will enable Satyender take a decision that shall set a precedent, which is least likely to be misused in the future?
1. Palani being new to the area uses autorickshaws which are more expensive than personal motorcycles used by other collection officers.
2. Unlike his colleagues, Palani's house has very poor public transport connectivity.
3. Unlike his colleagues, Palani's sales territory has a powerful competitor.
4. Unlike his colleagues, Palani's customers can meet him only during weekends.
5. Unlike his colleagues, Palani has to visit customers repeatedly as they require additional persuasion.
Choice A
Palani being new to the area uses autorickshaws which are more expensive than personal motorcycles used by other collection officers
XAT 2018 Question Paper - BDM

Satyender is allocating territories to his subordinates for the coming financial year. So far, Palani’s performance has been poor and this allocation will decide his future in the organization.

Which of the following information will be the least useful to Satyender in taking a fair allocation decision?
1. Sayed's territory has shown consistently good performance in the past three years.
2. Sayed's territory faces stiff competition from a well-known brand.
3. A new territory that faces competition from two relatively unknown brands.
4. Godwin's territory has shown consistent results in the past three years.
5. Godwin's territory performance has been flat for the past two years.
Choice C
A new territory that faces competition from two relatively unknown brands.

Read the situation below and answer the questions that follow:

Lal & Sons, a family business, comprises three different companies in three different industries. Sudarshan Lal was heading this entire business from the inception. Two years ago, he hired three managers, one for each company and Chhaganlal Jha as Chief Executive Officer (CEO) to look after the entire business. These three managers are reporting to the CEO. However, Sudarshan Lal and his family still own the entire business, though they are not involved in day to day operations.

XAT 2018 Question Paper - BDM

Two years after the handing over, Sudarshan was concerned that none of the companies, except one, is profitable.

Which of the following information, if true, will most likely reduce Sudarshan's concerns?
1. A leading financial institution recently advised its investors to purchase the shares of the two loss making companies with a long term outlook.
2. The Corporation's performance was stagnant for three years, before Sudarshan handed it over to professionals.
3. The best performing division belongs to an industry, which is growing in double digits.
4. People holding senior positions have been replaced two years ago by fresh and young talent.
5. The rate at which employees are leaving the best performing division is higher than the industry average.
Choice A
A leading financial institution recently advised its investors to purchase the shares of the two loss making companies with a long term outlook.
XAT 2018 Question Paper - BDM

Some of the senior employees who left Lal & Sons in recent past have complained to Sudarshan that the long cherished values of the organization such as respect for elders, job security etc. are being compromised.

Which of the following options, if true, will indicate to Sudarshan that the employees are misleading him?
1. The replaced employees have been average performers for many years.
2. When senior employees were assigned to lead challenging but critical positions in the organization, they resigned.
3. The senior employees were replaced by people below them and not from outside the organization.
4. The replaced senior employees had only 4 more years of service and were not compensated for the premature termination.
5. The number of senior employees voluntarily leaving this organization is lower than the industry average.
Choice B
When senior employees were assigned to lead challenging but critical positions in the organization, they resigned.
XAT 2018 Question Paper - BDM

Chhaganlal Jha, the CEO, was certain that someone in his leadership team was leaking information to Sudharshan Lal, well before Chhaganlal communicated.

Given the following options, how best should Chagganlal Jha respond to this situation?
1. Chhaganlal should request Sudarshan to kindly wait for him to communicate as informal sources may lead to misinformation.
2. Chhaganlal should complain about this to Sudarshan and threaten to resign.
3. Chhaganlal should request his team to continue passing information, since it brings down thecommunication barrier.
4. Chhaganlal should understand that this is bound to happen and should not bother.
5. Chhaganlal should threaten his team that one of them will be fired by the weekend if this practice of passing information doesn't stop immediately.
Choice A
Chhaganlal should request Sudarshan to kindly wait for him to communicate as informal sources may lead to misinformation.

Read the following caselet and answer questions that follow:

Rose is the Queen of Kingdom A and Emily is the Queen of Kingdom B; both share a common border. They also share a border with Kingdom C, a much larger kingdom, ruled by King Jonathan who has expansive ambitions. Though individually their armies were no match to his might, together their armies were more powerful than King Jonathan’s army.

Jonathan’s kingdom also bordered Kingdom K on the opposite side, making Kingdom C a buffer state between Kingdoms A, B and K. Kingdom K is ruled by King Summer Sault, who united a group of warring and belligerent tribes under his aegis. Kingdom K and Kingdom C had continuous skirmishes with each other.

XAT 2018 Question Paper - BDM

Jonathan realized that he has limited arms and ammunition to fight on all the three fronts simultaneously. Therefore, he planned to double the arms and ammunition which will take a few years. When this news reached Emily and Rose they held a secret meeting to discuss the situation.

Which of the following actions, by Emily and Rose, will be the best suited to delayJonathan's plan?
1. Emily and Rose should send arms and ammunition to Summer Sault for the next few years.
2. The two queens should meet Jonathan and attempt to sign a peace pact.
3. Emily and Rose should also double their armies.
4. Emily and Rose should attack Jonathan immediately.
5. The two queens should ignore the news.
Choice D
Emily and Rose should attack Jonathan immediately.
XAT 2018 Question Paper - BDM

Jonathan aims to invade and annex Kingdom K once and for all.
Which of the following options will best enable him to accomplish the ambition?
1. He should request the cooperation of Queen Rose and Queen Emily.
2. He should sign a peace pact with Queen Rose and Queen Emily.
3. He should try and create a rift between the two Queens.
4. He should secretly invest in doubling his army, by reducing all other expenditure.
5. He should attack all three kingdoms simultaneously, giving them no time to cooperate.
Choice D
Increase the income of doctors and paramedics, and the ambiance of the hospital.
XAT 2018 Question Paper - BDM

Which of the following is the best option for King Summer Sault to focus on economic development?
1. Align with Jonathan to eliminate one or two of the tribes and instill fear in others.
2. Align with the two Queens to eliminate a few tribes and unify the rest.
3. Design annual economic plans, with each plan named after a different tribe.
4. Create a rift among the tribes and instigate a civil war.
5. Request Jonathan to send teachers, doctors and artists to improve economic development of Kingdom K.
Choice C
Design annual economic plans, with each plan named after a different tribe.

Read the following caselet and answer the questions that follow:

Ava is the CEO of Ratan Brothers, a bicycle manufacturing company. The organization is doing well financially, with a steadily increasing share price. Recently, Ava promoted Bhushan, her nephew, to the position of head of procurement after he completed five years in the organization. After the promotion, he was automatically inducted into the quality council headed by Ava.
Dev and Sons is a supplier to Ratan Brothers. It supplies “ball bearings”, an important part of any bicycle.

After Bhushan took over, he switched to a new supplier citing quality deficiencies in Dev and Sons’ product. Dev and Sons responded by publicly declaring that quality was not compromised. Further, it alleged that its competitor bribed Bhushan to get the contract.

XAT 2018 Question Paper - BDM

Post this public allegation, the share price of Ratan Brothers started falling.
Which of the following is the best option for Ava to immediately stem the falling stock prices?
1. Fire Bhushan, blacklist Dev and Sons and inform the press.
2. Issue a press statement that a committee has been formed to look into the matter.
3. Issue a press statement that the company's quality standards have increased and that anyone is welcome to scrutinize the relevant documents.
4. Cancel the remaining order and call for a fresh tender.
5. Do nothing, as Bhushan, as the head of procurement, has the right to decide on the supplier.
Choice C
Issue a press statement that the company's quality standards have increased and that anyone is welcome to scrutinize the relevant documents.
XAT 2018 Question Paper - BDM

Under pressure from media and suppliers, Ava constituted a cross-functional committee of senior executives to investigate Dev and Sons' allegation against Bhushan. The committee exonerated Bhushan. However, rumors within the organization began to spread that the decision was influenced by nepotism.

Which of the following should be the best response from Ava?
1. Do nothing, as the committee has exonerated Bhushan.
2. Force Bhushan to resign temporarily. Make an independent enquiry, if found innocent, reinstate Bhushan.
3. Communicate to all shareholders that these kinds of practices are very common in organizations.
4. Sack all those employees who questioned the authority of Ava.
5. Explain in a town hall meeting, open to all the employees, how the decision to exonerate Bhushan was taken.
Choice E
Explain in a town hall meeting, open to all the employees, how the decision to exonerate Bhushan was taken.
XAT 2018 Question Paper - BDM

A few months after the issue of Dev and Sons, a vigilance committee discovered some financial irregularities attributable to Bhushan in his earlier stint as a senior manager in marketing. The board of directors was concerned about this and demanded a response from the CEO.

Ava contemplated following responses:
1. Offer to resign from the post of CEO, since as the CEO she is ultimately responsible for everything in the organization.
2. Sack Bhushan immediately and make the reason public.
3. Have a town hall meeting with all the employees and deny any financial irregularities in the organization.
4. Communicate to the board that as the CEO, the organization's financial health is her top priority, on which she has delivered stellar performance in the last five years.
5. Inform the board that Bhushan was promoted because his initiatives helped the company immensely.

Which of the following sequence of actions is the most appropriate for Ava?
1. 5,2,1
2. 5,4,3
3. 1,2,3
4. 2,1,4
5. 3,4,1
Choice A
5,2,1

Read the following caselet and answer the questions that follow:

A courier service has offices at three locations: Jamshedpur, Kharagpur and Howrah. Its employees travel by trains from one location to another for pick-up and delivery. It takes 40 minutes for an employee to travel from any railway station to the nearest office (and another 40 minutes for coming back); the paperwork to deliver the parcel at the respective office takes an additional 10 minutes. Assume employees do not waste any time.

Employees have the option to choose from any of the trains, whose timetable is given in the table below. Assume all trains travel on time and there is no time gap between arrival and departure of a train. Further, assume that the employee boards the train as soon as it arrives at the station.

Train numbers	T101	T102	T103	T104	T105
Jamshedpur Station	06:00	07:30	10:15	15:00	17:00
Kharagpur Station	07:30	09:05	12:05	16:50	18:25
Howrah Station	09:05	11:10	14:30	19:00	20:30
Train numbers	T201	T202	T203	T204	T205
Howrah Station	06:30	08:30	10:30	14:30	16:00
Kharagpur Station	08:15	10:40	12:15	16:15	17:55
Jamshedpur Station	10:20	12:35	14:00	17:45	20:00

XAT 2018 Question Paper - BDM

What will be the minimum time required to deliver a parcel at Kharagpur office from Jamshedpur station and come back to Jamshedpur station?
1. 4 hours 25 minutes
2. 5 hours 5 minutes
3. 6 hours 35 minutes
4. 7 hours 30 minutes
5. None of the above
Choice B
5 hours 5 minutes
XAT 2018 Question Paper - BDM

An employee, starting from Howrah station, has to deliver one parcel at Kharagpur office and another parcel at Jamshedpur office. His task starts the moment he boards the train at Howrah station, and gets completed immediately after delivering the second parcel.

Which of the following trains should he board at Howrah station to minimize the time required to complete his task?
1. T201
2. T202
3. T204
4. Both Option A and Option B
5. Both Option B and Option C
Choice D
Both Option B and Option C
XAT 2018 Question Paper - BDM

An employee, starting from Kharagpur station, has to deliver one parcel at Howrah office and another parcel at Jamshedpur office. His task starts the moment he boards the train at Kharagpur station, and gets completed immediately after delivering the second parcel.

Which of the following trains should he board at Kharagpur station to minimize the time required to complete the task?
1. T102
2. T103
3. T202
4. T203
5. Both Option B and Option D
Choice B
T103

Read the following caselet and answer questions that follow:

Three persons, A, B and C, lived on an island hill. A lived on the top of the island hill, B occupied the middle portion of the hill and C occupied the bottom of the hill. The top of the hill received good rainfall, the main source of water in the hill, though this portion of the hill had few trees. The middle of the hill however was lush with trees offering timber. The bottom of the hill had a good amount of stones and sand.

A, B and C assessed their wealth in terms of ownership of timber, water, stones and sand available in the island hill only. During heavy rains, stones and sand from the top and middle portion of the hill rolled over to the bottom. When the rains stopped, both A and B claimed that some stones rolled down from their lands to the land occupied by C. They wanted the stones back. But C argued that rolling down of stones is a natural process.

XAT 2018 Question Paper - BDM

All three approached a wise man for the settlement of the ownership dispute.
Which of the following is the best option available for the wise man?
1. Award ownership of stones to A.
2. Permit A to build a dam so that B and C are deprived of water.
3. Award ownership of stones to C, as stones rolled down naturally.
4. Award equal rights to all three over all the resources.
5. Award A, ownership of water and C, ownership of stones.
Choice D
Award equal rights to all three over all the resources
XAT 2018 Question Paper - BDM

Six months later, the three realized that the solution offered by the wise man in the previous question wasn't working to the satisfaction of all, because it did not help them find the appropriate value of resources. Therefore, they reverted to status quo ante. After one year, all three of them wanted to construct a house each, on their respective property. Three types of resources-1.Timber, 2.water and 3.stone & sand- were required to build a house. While each had one resource in abundance none of them had all the three in sufficient quantity. They still could not come to an agreement on how to fairly value and use each other's resources to construct the house. They again approached the wise man for advice.

The wise man studied the situation carefully and proposed the following actions:
1. The governing body of the United Federation of Islands, of which the island hill is a part, should take ownership of all the three properties and construct houses for the three.
2. Each person should own one third of each of the resources.
3. The three persons should arrive at the value of resources by trading the resources among them.

Which of the following is the most appropriate in the best interests of A, B and C?
1. 1 only
2. 2 only
3. 3 only
4. 1 & 2 only
5. All of 1, 2 & 3
Choice C
3 only

Read the following caselet and answer the questions that follow:

Ramesh, the owner of an auto-component manufacturing company in Sanand, had just returned after attending the funeral of his employee, Pankaj Kumar, who had died of cancer at the age of 35. Pankaj was a hardworking and sincere employee with impeccable performance record. Pankaj was the sole bread earner for his family with negligible savings and was survived by his wife and two school going children.
His wife will get around 8 lakh rupees accrued to Pankaj as social security benefit.
A large number of employees wanted the organization to employ Pankaj’s wife on compassionate grounds so that she could support her family. Though Ramesh was sympathetic to the demand, he realized that this could set a precedence, where the organization will have to provide jobs for everyone with similar conditions in the future. In fact, only recently, Ramesh had refused a request for a job to the daughter of an employee, who had died a few months before he was to retire.

XAT 2018 Question Paper - BDM

Ramesh formed a committee to look into this matter and the committee came up with the following suggestions:
1. Create a fund to take care of immediate family expenses.
2. Finance the school and college education of his children.
3. Sponsor the vocational education of his wife and subsequently help her find a job.
4. Purchase insurance for all the family members.
5. Request all employees of the organization to contribute towards the welfare of the family.

Which of the following options, from the above suggestions, will be the most sustainable for Pankaj’s family?
1. 1 & 2
2. 2 & 3
3. 3 & 4
4. 4 & 5
5. 3 & 5
Choice B
2 & 3
XAT 2018 Question Paper - BDM

Ramesh, along with senior managers, was in the process of designing a policy to deal with such issues in the future.

Which of the following policy statements will be the least amenable to misuse in the future?
1. The firm should provide one job to any of direct dependents of the deceased employee.
2. The firm should provide one job to any dependent, if employee dies during the service.
3. The firm should provide one job to any dependent, if the family does not have any other support and employee dies during service.
4. The firm should provide help to the dependent family members in pursuing good education and employment.
5. The firm shall constitute a committee, with fair representation from all stakeholders, to decide on the course of action based on specifics of the case.
Choice E
The firm shall constitute a committee, with fair representation from all stakeholders, to decide on the course of action based on specifics of the case.

Read the following caselet and answer the questions that follow:

Madhuri Apte, a busy professional, rents out her studio apartment located in South Mumbai. Since she stays three hours away from the studio apartment, she uses a networked digital lock to monitor the property remotely. Each customer gets a temporary and unique access code for the digital lock that enables them to enter the studio apartment for the duration of stay. The apartment’s entrance door can also be opened with physical keys and Madhuri Apte has two such keys in her possession. Madhuri Apte has employed a cleaner who has a permanent access code to enter the apartment for cleaning every day. She is available only between 15:00 hrs and 17:00 hrs. Madhuri Apte’s apartment caters largely to international customers. A customer typically stays for 3 days, paying an average rent of $125 per day.

XAT 2018 Question Paper - BDM

While Madhuri Apte's studio apartment gets good feedback on other aspects, many seem unhappy as they found the operation of the digital lock complicated.

Which of the following options is the best for Madhuri Apte in this context?
1. Madhuri should switch to a physical lock.
2. Madhuri, on request, should send one of the physical keys five days ahead of customer's arrival at an extra charge of $75.
3. Madhuri should request the cleaner to explain the working of the digital access code to customers for an extra charge.
4. Madhuri should do nothing as digital locks shall be the norm in the future.
5. Madhuri should create a video manual on "how to use the digital access code" and e-mail it to the customers before their arrival.
Choice E
Madhuri should create a video manual on "how to use the digital access code" and e-mail it to the customers before their arrival.
XAT 2018 Question Paper - BDM

Madhuri's apartment received good feedback from the guests, except with respect to the operation of the digital lock. She decided to leave a spare physical key in the house for her guests. Recently some of the guests had forgotten to leave the key behind during checkout. Making a spare key will cost $500 and will take about 10 days to arrive. She was confused if she should continue leaving the spare key and was looking for a way out.

Which of the following would be the best way out for her?
1. Keep Digital lock as the only option and communicate to customers.
2. Be present during checkout to ensure the key is returned.
3. Request the cleaner to be present during checkout.
4. Send polite reminders to guests before checkout date and on the day of checkout to leave the key behind.
5. Charge security deposit of $100 which will be forfeited if the keys are not left behind.
Choice D
Send polite reminders to guests before checkout date and on the day of checkout to leave the key behind.