XAT 2021 Question Paper | Bussiness Decision Making

XAT Previous Year Paper | XAT BDM Questions | Question 13

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Read the following scenario and answer the three questions that follow.
Churna is a peaceful village, surrounded by thickly forested high hills that isolate it from the rest of the world. Agriculture is the main occupation of the Churna villagers. Moreover, the forests provide seasonal fruits, tubers, medicinal herbs, and other forest produce in abundance. For all material needs not produced locally, the Churna villagers depend on Tendua, a faraway town.
Once a month, the Churna women would arduously trek with the surplus produce to Tendua. In the Tendua market, they convey the virtues of their produce through a beautiful song and dance routine. Reputed for their hard-bargaining skills, they always manage to extract a premium barter from the traders, more than fulfilling all their other material needs.

Question 13 : Damdu, an ambitious trader of Tendua, wants to have exclusive access to all the surplus produce from Churna.
Which of the following offers to the Churna village will BEST help Damdu achieve her objective?

  1. Damdu should offer to provide colourful sarees that the women of Churna fancy.
  2. Damdu should offer to set up a shop in Churna, which will barter all the material requirements of the village.
  3. Damdu should offer to educate the Churna villagers about cash transactions.
  4. Damdu should offer novel products, unseen by the Churna villagers.
  5. Damdu should offer to transport the villagers’ monthly material purchases from Tendua to Churna for free.

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Explanatory Answer

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The answer is 'Damdu should offer to set up a shop in Churna, which will barter all the material requirements of the village.'

Choice B is the correct answer.

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