XAT 2021 Question Paper | Bussiness Decision Making

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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 15 : A few months after granting exclusive access to Damdu, the village council of Churna meets to discuss the progress. After much debate and heated discussions, the village council decides to terminate the contract with Damdu. The village council feels that if the contract continues, then:
1. Over time, Churna’s produce will lose its association with Churna.
2. Churna's people will be ignorant of new developments in the market. 3. Churna’s dance and song will lose their identity.
4. Churna’s people will lose social interaction with the outer world.
5. Churna’s people will lose their hard bargaining skills.
Which of the above concerns, when arranged in descending order of significance, will BEST support the decision to terminate the contract with Damdu?

Video Explanation

Explanatory Answer

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The answer is '1, 2, 5, 3, 4'

Choice A is the correct answer.

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