IIFT 2009 Question Paper

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 Section 1
Instructions

Answer the questions based on the following graphs

Question 1

Which of the following year exhibited highest percentage decrease over the preceding year in the automobile production?

A 2005

B 2006

C 2007

D 2008

Answer: D

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Explanation:
Total automobile production in the year 2004 = 800+500+475 = 1775

Total automobile production in the year 2005 = 700+550+450 = 1700

Total automobile production in the year 2006 = 1025+675+475 = 2175

Total automobile production in the year 2007 = 1200+650+475 = 2325

Total automobile production in the year 2008 = 1250+600+350 = 2200

We can see that production decreased only twice during the given period in the year 2005 and 2008.
1775 − 1700
Hence, the percentage decrease in the year 2005 over the year 2004 = 1775 × 100 = 4.225 percent.
2325 − 2200
Similarly, the percentage decrease in the year 2008 over the year 2007 = 2325 × 100 = 5.376 percent.

Therefore, we can say that option D is the correct answer.

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Question 2

Assume whatever that is not sold domestically was exported, then which year has registered highest growth in exports of
automobiles?

A 2005

B 2006

C 2007

D 2008

Answer: B

Explanation:
Total automobile production exported in the year 2004 = (800+500+475)-(700+450+300) = 325

Total automobile production exported in the year 2005 = (700+550+450)-(675+500+350) = 175

Total automobile production exported in the year 2006 = (1025+675+475)-(900+625+400) = 250

Total automobile production exported in the year 2007 = (1200+650+475)-(1050+600+375) = 300

Total automobile production exported in the year 2008 = (1250+600+350)-(975+550+350) = 325

From the data itself we can see that highest growth occurred in the year 2006.

Therefore, we can say that option B is the correct answer.

Question 3

If the ratio of the domestic sale price of a commercial vehicle, a passenger vehicle, and a three wheeler is 5 : 3 : 2 then what percent
of earnings (approximately) is contributed by commercial vehicle segment to the overall earnings from domestic sales during the
period 2004-2008?

A 45%

B 43%

C 11%

D 27%

Answer: A

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Explanation:
Total commercial vehicles sold from the year 2004 to 2008 = 450+500+625+600+550 = 2725

Total passenger vehicles sold from the year 2004 to 2008 = 700+675+900+1050+975 = 4300

Total three wheelers sold from the year 2004 to 2008 = 300+350+400+375+350 = 1775
5 ∗ 2725
Hence, the percent of earnings is contributed by commercial vehicle segment alone = 5 ∗ 2725 + 3 ∗ 4300 + 2 ∗ 1775 × 100 =

45.30 % ≈ 45%.

Hence, option A is the correct answer.

Question 4

For which year were the domestic sales of automobiles closest to the average (2004-2008) domestic sales of automobiles?

A 2005

B 2006

C 2007

D 2008

Answer: D

Explanation:
Total domestic sales of automobiles in the year 2004 = (700+450+300) = 1450

Total domestic sales of automobiles in the year 2005 = (675+500+350) = 1525

Total domestic sales of automobiles in the year 2006 = (900+625+400) = 1925

Total domestic sales of automobiles in the year 2007 = (1050+600+375) = 2025

Total domestic sales of automobiles in the year 2008 = (975+550+350) = 1875

1450 + 1525 + 1925 + 2025 + 1875
Average domestic sales of automobiles for the given period = 5 = 1760.

Hence, we can say that the domestic sales in the year 2008 is the closest to the average domestic sales. Hence, option D is the correct
answer.

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Question 5

Which of the following years exhibited highest percentage increase over the preceding year in the automobile sales?

A 2005

B 2006

C 2007

D 2008

Answer: B

Explanation:
Total domestic sales of automobiles in the year 2004 = (700+450+300) = 1450

Total domestic sales of automobiles in the year 2005 = (675+500+350) = 1525

Total domestic sales of automobiles in the year 2006 = (900+625+400) = 1925

Total domestic sales of automobiles in the year 2007 = (1050+600+375) = 2025

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Total domestic sales of automobiles in the year 2008 = (975+550+350) = 1875

We can see that the automobiles sales rose by the highest amount in the year 2006 as compared to other years. Also, the base is
relatively smaller for remaining year except 2004. But the absolute growth is much higher in the year 2006 as compared to the year
2005. Hence, option B is the correct answer.

Question 6

The ratio between absolute increase in domestic sales over preceding year and absolute increase in production over the preceding
year is highest during which year?

A 2005

B 2006

C 2007

D 2008

Answer: B

Explanation:
Total automobile production in the year 2004 = 800+500+475 = 1775

Total automobile production in the year 2005 = 700+550+450 = 1700

Total automobile production in the year 2006 = 1025+675+475 = 2175

Total automobile production in the year 2007 = 1200+650+475 = 2325

Total automobile production in the year 2008 = 1250+600+350 = 2200

Total domestic sales of automobiles in the year 2004 = (700+450+300) = 1450

Total domestic sales of automobiles in the year 2005 = (675+500+350) = 1525

Total domestic sales of automobiles in the year 2006 = (900+625+400) = 1925

Total domestic sales of automobiles in the year 2007 = (1050+600+375) = 2025

Total domestic sales of automobiles in the year 2008 = (975+550+350) = 1875

In the year 2005 and 2008 the production and sales respectively are not increasing absolutely. Hence, we will check only for the year
2006 and 2007.

The ratio between absolute increase in domestic sales in the year 2006 over the year 2005 and absolute increase in production in the
1925 − 1525
year 2006 over the year 2005 = 2175 − 1700 = 0.84

2025 − 1925
Similarly, the required ratio for year 2007 = 2325 − 2175 = 0.66

Hence, we can say that the ratio is the highest for the year 2006. Therefore, option B is the correct answer.

Instructions

Answer the questions based on the following information.

The table below gives the details of money allocation by three Mutual funds namely, Alpha, Beta, and Gama. The return for each fund
depends on the money they allocate to different sectors and the returns generated by the sectors. The last column of the table gives
return for each of the sectors for a one year period.

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Question 7

Which fund has received more return per rupee of investment for one year period?

A Alpha

B Beta

C Gama

D Both Beta and Gama gives same return

Answer: A

Explanation:
As the numbers are far apart we can approximate the money allocation data to the nearest multiple of 0.5. The money allocation data
can be approximated as below.

Let us assume that Rs. 100 is invested in each fund.

Total return on investing Rs. 100 in fund Alpha =
1.5*1.05+3*1.12+7*.95+1.5*1.15+7.5*1.11+10*1.21
+9*1.08+26*1.06+14.5*1.25+6*1.18+4.5*1.10+5.5*.98+4*1.17 = Rs. 111.24.
111.24
Hence, net return per rupee in fund Alpha = 100 = Rs. 1.1124.

Similarly, we can calculate total return on investing Rs. 100 in fund Beta and Gama.

107.225
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 107.225
Net return per rupee in fund Beta = 100 = Rs. 1.07225.
109.48
Net return per rupee in fund Gama = 100 = Rs. 1.0948.

We can see that return per rupee is the highest for Alpha fund. Hence, option A is the correct answer.

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Question 8

If the allocation of money by the fund managers to different sectors is based on the internal ranking (i.e. Sector with 1st rank gets
highest allocation). Sectors with 0 allocation of money should be considered as 14th rank irrespective of the number of sectors in that
category. In the light of these examine the following
statements:
I. Automobile is ranked by both Alpha and Beta as same
II. Financial is most favoured by all three Mutual Funds
III. Services is ranked by all three Mutual Funds within top 9 ranks
Select the best option:

A Statement I and II are correct

B Statement I and III are correct

C Statement I alone is correct

D Statement III alone is correct

Answer: D

Explanation:
Let us tabulate the ranks of various sectors according to fund allocation.

Statement I : Automobile is ranked by both Alpha and Beta as same. This statement is incorrect.

Statement II : Financial is most favoured by all three Mutual Funds. This statement is incorrect as Energy sector is most favored by fund
Gama.

Statement III : Services is ranked by all three Mutual Funds within top 9 ranks. We can see that this statement is correct. Hence, option D
is the correct answer.

Question 9

Ms. Hema invested Rs. 10.00 lakhs in fund Gama in the beginning of the period. What will be the value of the investment at the end of
1 year period?

A Approximately Rs. 10.40 lakhs

B Approximately Rs. 10.95 lakhs

C Approximately Rs. 11.24 lakhs

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 Approximately Rs. 11.38 lakhs
D

Answer: B

Explanation:
As the numbers are far apart we can approximate the money allocation data to the nearest multiple of 0.5. The money allocation data
can be approximated as below.

Total return on investing Rs. 100 in fund Gama =

5*1.12+4*.95+6*1.15+9.5*1.11+20.5*1.21+15.5*1.08
+17*1.06+2*1.25+3*1.18+10*.92+4*1.1+3.5*.98 = Rs. 109.48.
109.48
Hence, total return of an investment of 10 lakhs in fund Gama after a year = 100 ∗ 10 = 10.948 lakhs ≈ 10.95 lakhs.
Hence, option B is the correct answer.

Instructions

Answer the questions based on the following Table

Question 10

What is the ratio between Jowar yield (2007) and Soyabean yield (2008)?

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A 1.00 : 2.10

B 1.21 : 1.89

C 0.89 : 2.00

D 0.78 : 1. 61

Answer: C

Explanation:
368
Jowar's yield in the year 2007 = 673 ≈ 0.55

799
Soyabean's yield in the year 2008 = 650 ≈ 1.23

Hence, the required ratio = 0.55 : 1.23 = 0.445 : 1 or 0.89: 2.00

Therefore, option C is the correct answer.

IIFT Free Topic-Wise Important Questions (Study Material)

Question 11

Top 3 crops by yield in the year 2006 are:

A Castor Seed, Groundnut, Maize

B Sunflower, Groundnut, Rice

C Castor Seed, Sunflower, Rice

D Bajra, Maize, Castor Seed

Answer: B

Explanation:
135
Caster Seed's yield in the year 2006 = 106 = 1.273

491
Groundnut's yield in the year 2006 = 317 = 1.55

1102
Maize's yield in the year 2006 = 1004 = 1.097

880
Sunflower's yield in the year 2006 = 472 = 1.864

153
Rice's yield in the year 2006 = 107 = 1.429

2172
Bazra's yield in the year 2006 = 4992 =0.435

Top 3 yields in 2006: Sunflower,Groundnut,Rice

Question 12

Bottom 3 crops by yield in the year 2008 are:

A Moth, Sesamum, Millets

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 Moong, Moth, Millets
B

C Arhar, Urd, Moong

D Moong, Sesamum, Chaula

Answer: A

Explanation:
250
Moth's yield in the year 2008 = 1199 = 0.2083

70
Sesamum's yield in the year 2008 = 280 = 0.25

4
Millets's yield in the year 2008 = 15 = 0.266

260
Moong's yield in the year 2008 = 725 = 0.358

9
Arhar's yield in the year 2008 = 19 = 0.474

35
Urd's yield in the year 2008 = 102 = 0.343

30
Chaula's yield in the year 2008 = 101 = 0.297

Bottom 3 yields in 2008: Moth, Sesamum, Millets

Question 13

Examine the following statements:

I. Total productivity of pulses has gone down over the years
II. Maize is the most stable cereal in terms of productivity over the years
III. Percentage growth in area and quantity of production is highest in the case of Jowar during the entrie period.
Select the best option:

A Statement I and II are correct

B Statement I and III are correct

C Statement II and III are correct

D Statement III alone is correct

Answer: C

Explanation:
Productivity is defined as total production per hectare.
130+31+149+13+26+2
Total productivity of pulses in the year 2006 = 799+124+1228+20+126+5 = 0.1524
270+30+191+9+45+3
Total productivity of pulses in the year 2007 = 751+101+1151+19+110+5 = 0.2564
260+35+250+9+30+2
Total productivity of pulses in the year 2008 = 725+102+1199+19+101+5 = 0.2724

We can see that clearly, Total productivity of pulses in the year 2008 > Total productivity of pulses in the year 2007 >Total productivity of
pulses in the year 2006. Hence, statement I is incorrect. Hence, we can reject option A and B.
1102
Productivity of Maize in the year 2006 = 1004 = 1.097

1116
Productivity of Maize in the year 2007 = 1020 = 1.094
1182
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 1182
Productivity of Maize in the year 2008 = 1101 = 1.073

We can see that productivity is approximately same during the given period for Maize. Hence, statement II is correct. Therefore, we can
reject option D.

Thus, we can say that option C is the correct answer.

Top 500+ Free Questions for IIFT

Question 14

Examine the following statements:

I. Over the period total cereal productivity has gone up
II. Area, Production and yield of the total oil seeds is on decline
III. Though there is a decline in the area under Urd production but the quantity of production and yield has gone up over the years.
Select the best option:

A Statement I and III are correct

B Statement I and II are correct

C Statement I alone is correct

D Statement III alone is correct

Answer: A

Explanation:
Productivity is defined as total production per hectare.
153+173+2172+1102+5
Total productivity of cereals in the year 2006 = 107+598+4992+1004+16 = 0.5366
190+380+3350+1182+4
Total productivity of cereals in the year 2008 = 110+720+4800+1101+15 = 0.756

We can see that clearly, Total productivity of cereals in the year 2008 > Total productivity of cereals in the year 2006. Hence, statement I
is correct.

Now let us check statement II.

63+491+856+880+135
Total yield of oil seeds in the year 2006 = 422+317+744+472+106 = 1.1766
70+374+799+699+106
Total yield of oil seeds in the year 2008 = 280+298+650+325+80 = 1.254

We can see that yield of Oil seeds is not on decline. Hence, statement II is incorrect.

Now let us check statement III.

Area under Urd production in the year 2006 = 124

Area under Urd production in the year 2008 = 102

Total Urd production in the year 2006 = 31

Total Urd production in the year 2008 = 35

31
Urd's yield in the year 2006 = 124 = 0.25
35
Urd's yield in the year 2008 = 102 = 0.34

Hence, we can say that statement III is correct. Therefore, option A is the correct answer.

Instructions

Study the following carefully and answer the questions.

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Question 15

During which year the Oil used for House Hold as a percentage of Total Oil Used is highest?

A 1998

B 1999

C 2000

D 2001

Answer: B

Explanation:
Total Oil used in the year 1998 = 22+1012+1732+104 = 2870.
22
Therefore, the percentage of total used that is used for House Hold = 2870 × 100 = 0.766.

Similarly we can calculate for remaining year.

From the table we can see that, in the year 1999 the Oil used for House Hold as a percentage of total Oil Used is highest. Hence, option
B is the correct answer.

Question 16

During which year the ‘Oil Production Loss’ as a proportion of ‘Total Oil Produced’ is the lowest?

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A 2002

B 2003

C 2004

D 2006

Answer: A

Explanation:
Total oil produced in the year 1996 = 10+700+1794+104+650 = 3258.
650
Therefore, oil production loss as a percentage of total oil produced in the year = 3258 × 100 = 19.95%.

Similarly, we can calculate for the remaining year. Tabulating the same data,

From the table, we can see that the oil production loss as a percentage of total oil produced is the lowest for the year 2002. Hence,
option A is the correct answer.

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Question 17

During which year use of oil by ‘Suburban’ as a proportion of ‘Total Oil Used’ was the highest?

A 2005

B 2006

C 2007

D 2008

Answer: D

Explanation:
Total oil used in the year 1996 = 10+700+1794+104 = 2608.
104
Therefore, Oil used by Suburban as a proportion of Total Oil Used = 2608 × 100 = 3.99 percent.

Similarly, we can calculate for the remaining years.

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From the table, we can see that oil used by suburban as a proportion of total oil used is the highest for the year 2008. Hence, option D is
the correct answer.

Question 18

For how many number of years the growth rate in ‘Production of Oil’ is more than the growth rate in ‘Total Oil Used’?

A 3 years

B 4 years

C 5 years

D 8 years

Answer: D

Explanation:
Total oil used in the year 1996 = 10+700+1794+104 = 2608.

Total oil produced in the year 1996 = 10+700+1794+104+650 = 3258.

Similarly, we can calculate for the remaining quantities for both the years. Tabulating the same data,

2914 − 2608
Therefore, growth rate of total oil used in the year 1997 as compared to 1996 = 2608 × 100 = 11.73%
3646 − 3258
Therefore, growth rate of total oil produced in the year 1997 as compared to 1996 = 3258 × 100 = 11.91%

Similarly, we can calculate for the remaining year. Tabulating the same data,

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From the table we can see that, the growth rate in ‘Production of Oil’ is more than the growth rate in ‘Total Oil Used’ in eight years.
{Year 1996, 1997, 1998, 2003, 2004, 2005, 2006, 2007}. Hence, option D is the correct answer.

Question 19

Which of the below statements are true, based on the data in the above table?

A Oil is used for ‘Transport’ purpose by Metro City is increasing every since 1996.

B Oil is used for ‘Industrial’ purpose by Metro City is increasing every since 1996.

C Oil used by ‘Suburban’ is increasing every year since 2000.

D Total Oil Produced’ is increasing every year since 2003.

Answer: D

Explanation:
Total oil used in the year 1996 = 10+700+1794+104 = 2608.

Total oil produced in the year 1996 = 10+700+1794+104+650 = 3258.

Similarly, we can calculate for the remaining quantities for both the years. Tabulating the same data,

From the table, we can see that quantity of 'total oil Produced’ is increasing every year since 2003. Hence, option D is the correct
answer.

Quant Formulas for IIFT PDF

Instructions

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Study the followin information carefully and answer the questions.

Four houses Blue, Green, Red and Yellow are located in a row in the given order. Each of the houses is occupied by a person earning a
fixed amount of a salary. The four persons are Paul, Krishna, Laxman, and Som.

Read the following instruction carefully:

I. Paul lives between Som and Krishna
II. Laxman does not stay in Blue house
III. The person living in Red house earns more than that of person living in Blue
IV. Salary of Som is more than that of Paul but lesser than that of Krishna
V. One of the person earns Rs. 80, 000
VI. The person earning Rs. 110,000 is not Laxman
VII. The salary difference between Laxman and Son is Rs. 30,000
VIII. The House in which Krishna lives is located between houses with persons earning salaries of Rs. 30,000 and Rs. 50,000
IX. Krishna does not live in Yellow house, and the person living in yellow house is not earning lowest salary among the four persons.

Question 20

Who lives in Red house?

A Paul

B Krishna

C Laxman

D Som

Answer: B

Question 21

Which house is occupied by person earning highest salary?

A Blue

B Green

C Red

D Yellow

Answer: C

Question 22

What is the salary earned by person living in Green house?

A Rs. 30,000

B Rs. 50,000

C Rs. 80,000

D Rs.110,000

Answer: A

IIFT Free Preparation App

Instructions
For the following questions answer them individually

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Question 23

Mr Raghav went in his car to meet his friends John. He Drove 30 kms towards north and then 40 kms towards west. He then turned to
south and covered 8 kms. Further he turned to east and moved 26 kms. Finally he turned right and drove 10 kms and then turned left
to travel 19 kms. How far and in which direction is he from the starting point?

A East of starting point, 5 kms

B East of starting point, 13 kms

C North East of starting point, 13 kms

D North East of starting point, 5 kms

Answer: C

Explanation:
We can draw a direction diagram according to the problem statement.

Net displacement in the east direction = 26 + 19 - 40 = 5 km.

Net displacement in the north direction = 30 - 8 - 10 = 12 km.

Hence, net distance from the starting point = 122 + 52 = 13 km.

Therefore, option C is the correct answer.

Question 24

Mr. Raju took the members of his family for a picnic. His father’s mother and mother’s father including each of their child were in one
car. His father’s son and sister’s husband, brother’s wife were in second car. He along with his wife, wife’s sister, wife’s brother and
son’s wife with a kid was in the third car. How many members of Mr. Raju’s family were there in the picnic and how many were left
behind (assuming all members of the third generation are married and Raju had 2 grandparents in the family)?

A 13 and 4

B 14 and 5

C 12 and 5

D 13 and 6

Answer: A

Explanation:
In the first car - Raju's father, grandmother, mother and maternal grandfather - 4 members
In the second car - Raju's brother, sister-in-law, and brother-in-law - 3 members
In the third car - Raju, Raju's wife, sister-in-law, brother-in-law, daughter-in-law, grandson - 6 members

Total = (4 + 3 + 6) = 13

Members not present - Raju's sister, sister-in-law's husband, brother-in-law's wife, son - 4 members.

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Hence, option A is the correct answer.

Question 25

ABCDE play a game of cards. ‘A’ tells ‘B’ that if ‘B’ gives him five cards ‘A’ will have as many cards as ‘E’ has. However if A gives five
cards to ‘B’ then ‘B’ will have as many cards as ‘D’. A and B together has 20 cards more than what D and E have together. B has four
cards more than what C has and total number of cards are 201. How many cards B have?

A 185

B 37

C 175

D Data inconsistent

Answer: D

Explanation:
Let 'a' be the number of cards with B. If A gives five cards to ‘B’ then ‘B’ will have as many cards as ‘D’.

Hence, the number of cards with D = 'a+5'.

B has four cards more than what C has. Hence, the number of cards with c = 'a-4'.

Let us assume that number of cards with A = 'x'. It is given that if ‘B’ gives 'A' five cards the A will have as many cards as ‘E’ has.

Hence, the number of cards with 'E' = x+5.

It is also given that A and B together has 20 cards more than what D and E have together.

Hence, (a+x) - (a+5+x+5) = 20.

Data given in the question contradicts with th information. Hence, this question can't be answer. Therefore, option D is the correct
answer.

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Question 26

Ganesh Cultural Centre for promoting arts has appointed 3 instructors for music, dance, and painting. Music instructor takes session
from 12 noon to 4:00 pm on Monday, Thursday and Sunday. The sessions of dance instructor are scheduled on Tuesday, Thursday,
Wednesday and Sunday between 10:00 a to 2:00 pm. The 9:00 am to 12:00 noon slot on Tuesday, Friday and Thursday and also 2:00
pm to 4:00 pm slot on Wednesday, Saturday and Sunday is filled up by Painting Instructor. On which day(s) of a week the dance and
painting sessions are simultaneously held?

A Sunday and Wednesday

B Tuesday and Friday

C Tuesday and Thursday

D Only on Tuesday

Answer: C

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Explanation:
According to the given information we can classify the working of instructors as :-

Music Instructor works from 12-4 pm on - Monday, Thursday and Sunday.

Dance Instructor works from 10 am-2 pm on - Tuesday, Wednesday, Thursday and Sunday

Painting Instructor works from -9 am - 12 noon on - Tuesday, Thursday and Friday

2 - 4 pm on - Wednesday, Saturday and Sunday

After this classification it is clear that Tuesday and Thursday are the days of the week the dance and painting sessions are
simultaneously held.

Instructions

Study the information given below and answer the questions.

The following table contains the pre and post revision pay structure of a Government department

The revision has been done based on the following terms:

-In pre-revised pay scale, the basic pay is the sum of the minimum pay in the appropriate pay scale and the admissible increment. After
revision, the basic pay is the sum of minimum pay in the appropriate pay scale and the respective grade pay and the admissible
increments.
-Annual increment of 3% of the basic pay (on a compounded basic) is paid under the revised pay rules.
-Monthly Dearness Allowance (DA) is calculated as percentage of basic pay.
-In pre-revised pay scales, the increment was given after the completion of each year of service, but, after revision annual increments are
given only in the month of July every year and there should be a gap of six months between the increments.
The employees who had joined the department in the month of September, October, November and December are given an increment at
the time of revised pay fixation in September, 2008.
The revised pay is applicable from 1st September, 2008.

Question 27

Abhijit joins the department on November 10, 2006 in the pay scale of Rs. 18,400-500-22,400 with the pay of Rs. 18,400 plus 2
increments. What is his basic salary, after revision, on August 1, 2009?

A Rs. 53,010

B Rs. 53,349

C Rs. 54,950

D Rs. 54,903

Answer: C

Question 28

Nitin joined the department on November 24, 2004 in the pay scale of Rs. 8,000-275-13,500, at the minimum pay. At the time of pay
revision, due to some error, his pay was fixed at the base (minimum) of the corresponding revised pay scale. The loss in his total
emoluments for September 2008, due to this error, will be:

A Rs. 3,915

B Rs. 3,982

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 Rs. 4,164
C

D No loss.

Answer: C

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Question 29

Sunitha joined the department at the basic pay of Rs. 13,500 in the pay scale of Rs. 12,000-16,500. On completion of her four years of
service in December, 2008, she was promoted to the next higher pay scale, the percentage increase in her gross salary is:

A 53%

B 43%

C 50%

D 60%

Answer: A

Question 30

Dinesh joined on July 1, 2008 in the pay scale of Rs. 16,400-20,000 at the basic pay of Rs. 16,850. On August 10, 2009, the
department revised the rates of DA to 31% with effect from January, 2009 and further to 36% effective from July 2009. How much
arrear will Dinesh get in August, 2009 because of these revisions?

A Rs. 12,981

B Rs. 10,395

C Rs. 17,052

D Rs. 13,302

Answer: A

Instructions

Study the information given below and answer the questions.

A word arrangement machine, when given a particular input, rearranges it using a particular rule. The following is the illustration and the
steps of the arrangement
INPUT: Smile Nile Style Mile Shine Wine Mine Swine Bovine Feline
STEP 1: Smile Nile Style Mile Shine Wine Bovine Feline Mine Swine
STEP 2: Style Mile Smile Nile Shine Wine Bovine Feline Mine Swine
STEP 3: Style Mile Smile Nile Wine Shine Bovine Feline Mine Swine
STEP 4: Mile Style Nile Smile Wine Shine Feline Bovine Swine Mine
STEP 5: Nile Smile Mile Style Wine Shine Swine Mine Feline Bovine
STEP 6: Nile Smile Mile Style Wine Shine Feline Bovine Swine Mine
STEP 7: Mile Style Nile Smile Wine Shine Feline Bovine Swine Mine

Question 31

Which of the following will be step 14 for the given input:

A Style Mile Smile Nile Wine Shine Bovine Feline Mine Swine

B Smile Nile Style Mile Shine Wine Mine Swine Bovine Feline
C Mile Style Nile Smile Wine Shine Feline Bovine Swine Mine

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 Style Mile Smile Nile Shine Wine Bovine Feline Mine Swine
D

Answer: C

Explanation:
Divide the whole sequence into group of words of 4, 2 and 4 so in the input the-

First group will be- Smile Nile Style Mile

Second group will be - Shine Wine

Third group will be - Mine Swine Bovine Feline

In step 1 the 1 and 2 of Third group are exchanging their position with the 3 and 4 respectively i.e. Mine Swine are exchanging their
position with Bovine Feline respectively with everything else constant

therefore step 1 is- Smile Nile Style Mile Shine Wine Bovine Feline Mine Swine

In step 2 the 1 and 2 of First group are exchanging their position with the 3 and 4 respectively i.e. Smile Nile are exchanging their
position with Style Mile respectively with everything else constant

therefore step 2 is- Style Mile Smile Nile Shine Wine Bovine Feline Mine Swine

In step 3 the 1 and 2 of Second group are exchanging their position i.e. Shine is exchanging it's position with Wine with everything else
constant

therefore step 3 is- Style Mile Smile Nile Wine Shine Bovine Feline Mine Swine

In step 4 the 1 and 2 of First group are exchanging their position i.e. Style is exchanging it's position with Mile , 3 and 4 of First group are
exchanging their position i.e. Smile is exchanging it's position with Nile and Similarly the 1 and 2 of Third group are exchanging their
position i.e. Bovine is exchanging it's position with Feline , 3 and 4 of Third group are exchanging their position i.e. Mine is exchanging
it's position with Swine with the positions of Shine and Wine remaining same

therefor step 4 is- Mile Style Nile Smile Wine Shine Feline Bovine Swine Mine

In step 5 the 1 and 2 of First group are exchanging their position with the 3 and 4 respectively i.e. Mile Style are exchanging their position
with Nile Smile respectively and the 1 and 2 of Third group are exchanging their position with the 3 and 4 respectively i.e. Feline
Bovine are exchanging their position with Swine Mine respectively with everything else constant

therefor step 5 is- Nile Smile Mile Style Wine Shine Swine Mine Feline Bovine

In step 6 the 1 and 2 of Third group are exchanging their position with the 3 and 4 respectively i.e. Swine Mine are exchanging their
position with Feline Bovine respectively with everything else constant

therefor step 6 is- Nile Smile Mile Style Wine Shine Feline Bovine Swine Mine

In step 7 the 1 and 2 of First group are exchanging their position with the 3 and 4 respectively i.e. Nile Smile are exchanging their
position with Mile Style respectively with everything else constant

therefor step 7 is- Mile Style Nile Smile Wine Shine Feline Bovine Swine Mine

As can be observed the pattern is repeating

therefore step 8 will be Mile Style Nile Smile Shine Wine Feline Bovine Swine Mine

step 9- Style Mile Smile Nile Shine Wine Bovine Feline Mine Swine

step 10- Smile Nile Style Mile Shine Wine Mine Swine Bovine Feline

step 11- Smile Nile Style Mile Shine Wine Bovine Feline Mine Swine

step 12- Style Mile Smile Nile Shine Wine Bovine Feline Mine Swine

step 13- Style Mile Smile Nile Wine Shine Bovine Feline Mine Swine

step 14- Mile Style Nile Smile Wine Shine Feline Bovine Swine Mine

Therefore the answer is option 'C'

XAT Previous Papers

Question 32

Mark the arrangement that does not fall between step numbers 12 and 14.

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A Style Mile Smile Nile Wine Shine Bovine Feline Mine Swine

B Mile Style Nile Smile Wine Shine Feline Bovine Swine Mine

C Style Mile Smile Nile Shine Wine Bovine Feline Mine Swine

D Smile Nile Style Mile Shine Wine Bovine Feline Mine Swine

Answer: D

Explanation:
Divide the whole sequence into group of words of 4, 2 and 4 so in the input the-

First group will be- Smile Nile Style Mile

Second group will be - Shine Wine

Third group will be - Mine Swine Bovine Feline

In step 1 the 1 and 2 of Third group are exchanging their position with the 3 and 4 respectively i.e. Mine Swine are exchanging their
position with Bovine Feline respectively with everything else constant

therefore step 1 is- Smile Nile Style Mile Shine Wine Bovine Feline Mine Swine

In step 2 the 1 and 2 of First group are exchanging their position with the 3 and 4 respectively i.e. Smile Nile are exchanging their
position with Style Mile respectively with everything else constant

therefore step 2 is- Style Mile Smile Nile Shine Wine Bovine Feline Mine Swine

In step 3 the 1 and 2 of Second group are exchanging their position i.e. Shine is exchanging it's position with Wine with everything else
constant

therefore step 3 is- Style Mile Smile Nile Wine Shine Bovine Feline Mine Swine

In step 4 the 1 and 2 of First group are exchanging their position i.e. Style is exchanging it's position with Mile , 3 and 4 of First group are
exchanging their position i.e. Smile is exchanging it's position with Nile and Similarly the 1 and 2 of Third group are exchanging their
position i.e. Bovine is exchanging it's position with Feline , 3 and 4 of Third group are exchanging their position i.e. Mine is exchanging
it's position with Swine with the positions of Shine and Wine remaining same

therefor step 4 is- Mile Style Nile Smile Wine Shine Feline Bovine Swine Mine

In step 5 the 1 and 2 of First group are exchanging their position with the 3 and 4 respectively i.e. Mile Style are exchanging their position
with Nile Smile respectively and the 1 and 2 of Third group are exchanging their position with the 3 and 4 respectively i.e. Feline
Bovine are exchanging their position with Swine Mine respectively with everything else constant

therefor step 5 is- Nile Smile Mile Style Wine Shine Swine Mine Feline Bovine

In step 6 the 1 and 2 of Third group are exchanging their position with the 3 and 4 respectively i.e. Swine Mine are exchanging their
position with Feline Bovine respectively with everything else constant

therefor step 6 is- Nile Smile Mile Style Wine Shine Feline Bovine Swine Mine

In step 7 the 1 and 2 of First group are exchanging their position with the 3 and 4 respectively i.e. Nile Smile are exchanging their
position with Mile Style respectively with everything else constant

therefor step 7 is- Mile Style Nile Smile Wine Shine Feline Bovine Swine Mine

As can be observed the pattern is repeating

therefore step 8 will be Mile Style Nile Smile Shine Wine Feline Bovine Swine Mine

step 9- Style Mile Smile Nile Shine Wine Bovine Feline Mine Swine

step 10- Smile Nile Style Mile Shine Wine Mine Swine Bovine Feline

step 11- Smile Nile Style Mile Shine Wine Bovine Feline Mine Swine

step 12- Style Mile Smile Nile Shine Wine Bovine Feline Mine Swine

step 13- Style Mile Smile Nile Wine Shine Bovine Feline Mine Swine

step 14- Mile Style Nile Smile Wine Shine Feline Bovine Swine Mine

As can be observed from steps 12-14 option D is not present

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Therefore the answer is option 'D'

Question 33

If the arrangement is repeated which of the steps given below is same as the INPUT row?

A Step 9

B Step 11

C Step 20

D Step 14

Answer: C

Explanation:
Divide the whole sequence into group of words of 4, 2 and 4 so in the input the-

First group will be- Smile Nile Style Mile

Second group will be - Shine Wine

Third group will be - Mine Swine Bovine Feline

In step 1 the 1 and 2 of Third group are exchanging their position with the 3 and 4 respectively i.e. Mine Swine are exchanging their
position with Bovine Feline respectively with everything else constant

therefore step 1 is- Smile Nile Style Mile Shine Wine Bovine Feline Mine Swine

In step 2 the 1 and 2 of First group are exchanging their position with the 3 and 4 respectively i.e. Smile Nile are exchanging their
position with Style Mile respectively with everything else constant

therefore step 2 is- Style Mile Smile Nile Shine Wine Bovine Feline Mine Swine

In step 3 the 1 and 2 of Second group are exchanging their position i.e. Shine is exchanging it's position with Wine with everything else
constant

therefore step 3 is- Style Mile Smile Nile Wine Shine Bovine Feline Mine Swine

In step 4 the 1 and 2 of First group are exchanging their position i.e. Style is exchanging it's position with Mile , 3 and 4 of First group are
exchanging their position i.e. Smile is exchanging it's position with Nile and Similarly the 1 and 2 of Third group are exchanging their
position i.e. Bovine is exchanging it's position with Feline , 3 and 4 of Third group are exchanging their position i.e. Mine is exchanging
it's position with Swine with the positions of Shine and Wine remaining same

therefor step 4 is- Mile Style Nile Smile Wine Shine Feline Bovine Swine Mine

In step 5 the 1 and 2 of First group are exchanging their position with the 3 and 4 respectively i.e. Mile Style are exchanging their position
with Nile Smile respectively and the 1 and 2 of Third group are exchanging their position with the 3 and 4 respectively i.e. Feline
Bovine are exchanging their position with Swine Mine respectively with everything else constant

therefor step 5 is- Nile Smile Mile Style Wine Shine Swine Mine Feline Bovine

In step 6 the 1 and 2 of Third group are exchanging their position with the 3 and 4 respectively i.e. Swine Mine are exchanging their
position with Feline Bovine respectively with everything else constant

therefor step 6 is- Nile Smile Mile Style Wine Shine Feline Bovine Swine Mine

In step 7 the 1 and 2 of First group are exchanging their position with the 3 and 4 respectively i.e. Nile Smile are exchanging their
position with Mile Style respectively with everything else constant

therefor step 7 is- Mile Style Nile Smile Wine Shine Feline Bovine Swine Mine

As can be observed the pattern is repeating

therefore step 8 will be Mile Style Nile Smile Shine Wine Feline Bovine Swine Mine

step 9- Style Mile Smile Nile Shine Wine Bovine Feline Mine Swine

step 10- Smile Nile Style Mile Shine Wine Mine Swine Bovine Feline

step 11- Smile Nile Style Mile Shine Wine Bovine Feline Mine Swine

step 12- Style Mile Smile Nile Shine Wine Bovine Feline Mine Swine

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step 13- Style Mile Smile Nile Wine Shine Bovine Feline Mine Swine

step 14- Mile Style Nile Smile Wine Shine Feline Bovine Swine Mine

As can be seen the answer cannot be step 9/11/14 therefore by eliminating the options we get the answer as step 20

Therefore the answer is option 'C'

Instructions

Study the information given below and answer the questions.

A Prime Minister is contemplating the expansion of his cabinet. There are four ministerial berths and there are eight probable
candidates (C1-C8) to choose from. The selection should be in a manner that each selected person shares a liking with at least one of
the other three selected members. Also, the selected must also hate at least one of the likings of any of the other three persons
selected.

I. C1 likes travelling and sightseeing, but hates river rafting.

II. C2 likes sightseeing and squash, but hates travelling.
III. C3 likes river rafting, but hates sightseeing.
IV. C4 likes trekking, but hates squash.
V. C5 likes squash, but hates sightseeing and trekking.
VI. C6 likes travelling, but hates sightseeing and trekking.
VII. C7 likes river rafting and trekking, but hates travelling.
VIII. C8 likes sightseeing and river rafting, but hates trekking.

Question 34

Who are the four people selected by the Prime Minister?

A C1, C2, C5, C6

B C3, C4, C5, C6

C C1, C2, C4, C7

D None of the above

Answer: C

Explanation:
Option A:- C1, C2, C5, C6

therefore according to the given conditions if C1 is selected and since he hates river rafting then at least one of the C2, C5, C6 must like
river rafting but C2 likes sightseeing and squash, C5 likes squash and C6 likes travelling i.e. none of C2, C5, C6 likes river rafting,
therefore conditions are not getting satisfied therefore option A cannot be the answer

Option B:-C3, C4, C5, C6

therefore according to the given conditions if C3 is selected and since he hates sightseeing then at least one of the C4, C5, C6 must
like sightseeingbut C4 likes trekking, C5 likes squash and C6 likes travelling i.e. none of C4, C5, C6 likes sightseeing, therefore
conditions are not getting satisfied therefore option B cannot be the answer

Option C:-C1, C2, C4, C7

Here C1 hates river rafting and C7 likes river rafting also C1 likes sightseeing and so does C2 therefore C1 can be on the team, C2 hates
travelling and C1 likes travelling also C2 likes sightseeing and so does C1 therefore C2 can be on the team, C4 hates squash and C2
likes squash also C4 likes trekking and so does C7 therefore C4 can be on the team and finally C7 hates travelling and C1 likes travelling
also C7 likes trekking and so does C4 therefore C7 can be on the team.

Since all the conditions are getting satisfied option 'C' is the answer.

CMAT Free Solved Previous Papers.

Section 2
Instructions
For the following questions answer them individually

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Question 35

Arcelor, acquired by Mittal steel, was formed by merger of which of the following three steel companies?

A Arcel, Arecalia and Usinor

B Arcel, Acer and Lucinor

C Arbed, Aceralia and Usinor

D None of the above

Answer: C

Explanation:
Arcelor was created in February 2002 through the merger of Arbed (Luxembourg) founded in 1911, Aceralia (Spain) and Usinor (France).
Hence, option C is the correct answer.

MAT Free Solved Previous Papers

Question 36

Select the correct author - book match.

A a-iii, b-i, c-ii, d-iv

B a-i, b-iii, c-iv, d-ii

C a-i, b-ii, c-iii, d-iv

D a-ii, b-i, c-iii, d-iv

Answer: A

Explanation:
Imagining India is written by Nandan Nilekani.
Remaking India is written by Arun Maira.
A Better India A Better World is written by Narayan Murthy.
A Vision for the New Millennium is written by A P J Abdul Kalam.

Hence, option A is the correct answer.

There is a mistake in the question. Arun Maira is replaced by Ratan Tata.

Question 37

The company Fem Care Pharma Limited, the manufacturer of Fem Bleach, was acquired by?

A Hindustan Unilever Limited

B Godrej Industries Limited

C Dr Reddy’s Laboratories

D Dabur India Limited

Answer: D

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Explanation:
The company Fem Care Pharma Limited, the manufacturer of Fem Bleach, was acquired by Dabur India Limited.
Hence, option D is the correct answer.

Question 38

Which is the correct Stock Index - Country Match?

A a-i, b-ii, c-iii, d-iv

B a-iii, b-i, c-iv, d-ii

C a-iv, b-i, c-iii, d-ii

D a-iv, b-ii, c-i, d-iii

Answer: B

Explanation:
HANG SENG is the Stock Index of Hong Kong.
NASDAQ is the Stock index of USA.
FTSE is the Stock index of United Kingdom.
KOSPI is the Stock index of South Korea.

Hence, option B is the correct answer.

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Question 39

Which is the correct Legal Act and Jurisdiction Match?

A a-ii, b-iii, c-iv, d-I

B a-iii, b-iv, c-ii, d-i

C a-iv, b-i, c-ii, d-iii

D a-i, b-ii, c-iii, d-iv

Answer: A

Explanation:
Companies Act 1956 is related to the formation and regulation of companies.
Competition Act 2002 is related to prohibition of anti-competitive agreements.

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SEBI Act 1992 was enacted to protect the interests of the investors.
FEMA Act 1999 was enacted to facilitate external trade and payments.

Therefore, option A is the right answer.

Question 40

Match the President, Country and Currency.

A a-i-1, b-ii-2, c-iii-3, d-iv-4

B a-iii-2, b-i-1, c-ii-3, d-iv-4

C a-iv-2, b-i-1, c-ii-3, d-iii-2

D a-ii-2, b-i-1, c-iii-4, d-iv-4

Answer: C

Explanation:
Nicolas Sarkozy is from France.
Dmitry Medvedev is from Russia.
Yoweri Museveni if from Uganda.
Horst Kohler is from Germany.

Hence, option C is the correct answer.

Question 41

The abbreviations given in the first column are explained in the second column. Select the option which has all wrong explanations of
the abbreviations.

A b-ii, c-iii, e-v, i-ix

B a-i, f-vi, h-viii

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 b-ii, d-iv, g-vii
C

D e-v, i-ix, h-viii

Answer: A

Explanation:
UNCTAD : United Nations Conference on Trade and Development
UNCED : United Nations Conference on Environment and Development
PFRDA : Pension Fund Regulatory and Development Authority
ASSOCHAM : Associated Chambers of Commerce and Industry of India.
There is no such acronym as TAFTA.

Hence, option A is the correct answer.

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Question 42

Who amongst the following was not nominated by the Government of India on the board of Satyam Computers Services?

A T N Manoharan

B Ketan Parekh

C Suryakant Balakrishnan Mainak

D Kiran Karnik

Answer: B

Explanation:
T N Manoharan, Suryakant Balakrishnan Mainak, Kiran Karnik were nominated by the Government of India on the board of Satyam
Computers Services.
Hence, option B is the correct answer.

Question 43

CDS which has been in news recently stands for?

A Collateral Default Swap

B Credit Demand Swap

C Credit Default Swap

D Collateral Demand Swap

Answer: C

Explanation:
CDS stands for Credit Default Swap.
Hence, option C is the correct answer.

Question 44

The table given below matches the company with its auto brand. Choose the correct match.

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A a-i, b-ii, c-iii, d-iv

B a-iv, b-i, c-ii, d-iii

C a-iv, b-i, c-iii, d-ii

D a-iv, b-ii, c-iii, d-iv

Answer: C

Explanation:
Land Rover is of TATA, Jetta is of Volkswagen, Lexus is of Toyota and Xylo is of Mahindra.
Hence, option C is the correct answer.

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Question 45

The slogans in the table given below have been matched with the company they relate to. Choose the correct match.

A a-ii, b-i, c-iii, d-iv

B a-iii, b-ii, c-i, d-iv

C a-ii, b-i, c-iv, d-iii

D a-ii, b-iv, c-i, d-iii

Answer: C

Explanation:
HP's slogan is Technology you can trust.
Philips' slogan is Let's make things better.
Microsoft's slogan is You potential our passion.
Intel's slogan is Sponsors of tomorrow.

Hence, option C is the correct answer.

Question 46

In the financial year 2008-09, the top three investing countries in terms of FDI inflows were:

A USA, UK, Mauritius

B Mauritius, Singapore, USA

C UK, Japan, Mauritius

D Mauritius, USA, Japan

Answer: B

Explanation:
In the financial year 2008-09, the top three investing countries in terms of FDI inflows were Mauritius, Singapore, USA.
Hence, option B is the correct answer.

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Question 47

Negative inflation is also called:

A Disinflation

B Deflation

C Both

D None of the above

Answer: B

Explanation:
Negative inflation is also called deflation.
Hence, option B is the correct answer.

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Question 48

The co-founders of Google are:

A Sergey Brin & Eric Schmidt

B Larry Page & Eric Schmidt

C Sergey Brin & Larry Page

D Shirley M tilghman & Eric Schmidt

Answer: C

Explanation:
The co-founders of Google are Sergey Brin & Larry Page.
Hence, option C is the correct answer.

Question 49

Which of the following Public Sector Units does not fall in the category of ‘Navratna’ PSUs:

A Steel authority of India (SAIL)

B Indian oil corporation (IOC)

C National Thermal Power corporation (NTPC)

D National Hydroelectric Power Corporation (NHPC)

Answer: D

Question 50

Which one of the following statements does not relate to the concept of carbon credits?

For one tonne of carbon dioxide emission reduction a company receives a carbon emission certificate which can be traded like any
A
other commodity.

B The carbon emission certificates are sold to companies in developed economies like power utilities.

C Carbon credit certificates are traded under UN- mandated international convention on climate change.

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 Developing economies are allowed to offset some of their emissions from cars, factories and homes by funding clean energy
D projects in developed ones.

Answer: D

Explanation:
Except option D, all other statements are related to carbon credits.
Hence, option D is correct answer.

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Question 51

India signed the Kyoto Protocol in the year:

A 2000

B 1998

C 2002

D 1995

Answer: C

Explanation:
India signed the Kyoto Protocol on 26 August 2002.
Hence, option C is the correct answer.

Question 52

Match Column A with Column B.

A a-i, b-ii, c-iii, d- iv

B a-iv, b-iii, c-ii, d-i

C a-ii, b-iii, c-i, d-iv

D a-iii, b-ii, c-i, d-iv

Answer: B

Explanation:
C. K Prahlad wrote the book Core Competence of the Corporation.
Paul Krugman wrote International Trade and New Economic Geography.
Al gore is related to Climate Change and Global Warming.
Amartya Sen is related to Capability and Equality.

Hence, option B is the correct answer.

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Question 53

Match the women CEOs with the company.

A a-iii, b-i, c-ii, d-iv

B a-i, b-ii, c-iv, d-iii

C a-ii, b-i, c-iv, d-iii

D a-i, b-iii, c-iv, d-ii

Answer: C

Explanation:
Ms Sikha Sharma is the CEO of Axis Bank.
Ms. Naina Lal Kidwaiekani was the CEO of HSBC.
Ms Indra Nooyi is the CEO of PepsiCo.
Ms. kiran Mazumdar Shaw is the CEO of Biocon India.

Hence, option C is the correct answer.

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Question 54

Match the company and the place where it originates from

A a-ii, b-i, c-iv, d-iii

B a-ii, b-i, c-iii, d-iv

C a-iii, b-ii, c-i, d-iv

D a-iii, b-iv, c-i, d-ii

Answer: A

Explanation:
Section III

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Section 4 part 1
Instructions

Read carefully the four passages that follow and answer the questions given at the end of each passage:

PASSAGE I

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The most important task is revitalizing the institution of independent directors. The independent directors of a company should be
faithful fiduciaries protecting, the long-term interests of shareholders while ensuring fairness to employees, investor, customer,
regulators, the government of the land and society. Unfortunately, very often, directors are chosen based of friendship and, sadly,
pliability. Today, unfortunately, in the majority of cases, independence is only true on paper.

The need of the hour is to strengthen the independence of the board. We have to put in place stringent standards for the independence
of directors. The board should adopt global standards for director-independence, and should disclose how each independent director
meets these standards. It is desirable to have a comprehensive report showing the names of the company employees of fellow board
members who are related to each director on the board. This report should accompany the annual report of all listed companies.

Another important step is to regularly assess the board members for performance. The assessment should focus on issues like
competence, preparation, participation and contribution. Ideally, this evaluation should be performed by a third party. Underperforming
directors should be allowed to leave at the end of their term in a gentle manner so that they do not lose face. Rather than being the
rubber stamp of a company’s management policies, the board should become a true active partner of the management. For this,
independent directors should be trained in their in their in roles and responsibilities. Independent directors should be trained on the
business model and risk model of the company, on the governance practices, and the responsibilities of various committees of the
board of the company. The board members should interact frequently with executives to understand operational issues. As part of the
board meeting agenda, the independent directors should have a meeting among themselves without the management being present.

The independent board members should periodically review the performance of the company’s CEO, the internal directors and the
senior management. This has to be based on clearly defined objective criteria, and these criteria should be known to the CEO and other
executive directors well before the start of the evolution period. Moreover, there should be a clearly laid down procedure for
communicating the board’s review to the CEO and his/her team of executive directors. Managerial remuneration should be based on
such reviews. Additionally, senior management compensation should be determined by the board in a manner that is fair to all
stakeholders. We have to look at three important criteria in deciding managerial remuneration-fairness accountability and transparency.
Fairness of compensation is determined by how employees and investors react to the compensation of the CEO. Accountability is
enhanced by splitting the total compensation into a small fixed component and a large variable component. In other words, the CEO,
other executive directors and the senior management should rise or fall with the fortunes of the company. The variable component
should be linked to achieving the long-term objectives of the firm. Senior management compensation should be reviewed by the
compensation committee of the board consisting of only the independent directors. This should be approved by the shareholders. It is
important that no member of the internal management has a say in the compensation of the CEO, the internal board members or the
senior management.

The SEBI regulations and the CII code of conduct have been very helpful in enhancing the level of accountability of independent
directors. The independent directors should decide voluntarily how they want to contribute to the company. Their performance should
decide voluntarily how they want to contribute to the company. Their performance should be appraised through a peer evaluation
process. Ideally, the compensation committee should decide on the compensation of each independent director based on such a
performance appraisal.

Auditing is another major area that needs reforms for effective corporate governance. An audit is the Independent examination of
financial transactions of any entity to provide assurance to shareholder and other stakeholders that the financial statements are free of
material misstatement. Auditors are qualified professionals appointed by the shareholders to report on the reliability of financial
statements prepared by the management. Financial markets look to the auditor’s report for an independent opinion on the financial and
risk situation of a company. We have to separate such auditing form other services. For a truly independent opinion, the auditing firm
should not provide services that are perceived to be materially in conflict with the role of the auditor. These include investigations,
consulting advice, sub contraction of operational activities normally undertaken by the management, due diligence on potential
acquisitions or investments, advice on deal structuring, designing/implementing IT systems, bookkeeping, valuations and executive
recruitment. Any departure from this practice should be approved by the audit committee in advance. Further, information on any such
exceptions must be disclosed in the company’s quarterly and annual reports. To ensure the integrity of the audit team, it is desirable to
rotate auditor partners. The lead audit partner and the audit partner responsible for reviewing a company’s audit must be rotated at
least once every three to five years. This eliminates the possibility of the lead auditor and the company management getting into the
kind of close, cozy relationship that results in lower objectivity in audit opinions. Further, a registered auditor should not audit a chief
accounting office was associated with the auditing firm. It is best that members of the audit teams are prohibited from taking up
employment in the audited corporations for at least a year after they have stopped being members of the audit team.

A competent audit committee is essential to effectively oversee the financial accounting and reporting process. Hence, each member of
the audit committee must be ‘financially literate’, further, at least one member of the audit committee, preferably the chairman, should
be a financial expert-a person who has an understanding of financial statements and accounting rules, and has experience in auditing.
The audit committee should establish procedures for the treatment of complaints received through anonymous submission by
employees and whistleblowers. These complaints may be regarding questionable accounting or auditing issues, any harassment to an
employee or any unethical practice in the company. The whistleblowers must be protected.

Any related-party transaction should require prior approval by the audit committee, the full board and the shareholders if it is material.
Related parties are those that are able to control or exercise significant influence. These include; parent- subsidiary relationships;
entities under common control; individuals who, through ownership, have significant influence over the enterprise and close members
of their families; and dey management personnel.

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Accounting standards provide a framework for preparation and presentation of financial statements and assist auditors in forming an
opinion on the financial statements. However, today, accounting standards are issued by bodies comprising primarily of accountants.
Therefore, accounting standards do not always keep pace with changes in the business environment. Hence, the accounting standards-
setting body should include members drawn from the industry, the profession and regulatory bodies. This body should be independently
funded.

Currently, an independent oversight of the accounting profession does not exist. Hence, an independent body should be constituted to
oversee the functioning of auditors for Independence, the quality of audit and professional competence. This body should comprise a
"majority of non- practicing accountants to ensure independent oversight. To avoid any bias, the chairman of this body should not have
practiced as an accountant during the preceding five years. Auditors of all public companies must register with this body. It should
enforce compliance with the laws by auditors and should mandate that auditors must maintain audit working papers for at least seven
years.

To ensure the materiality of information, the CEO and CFO of the company should certify annual and quarterly reports. They should
certify that the information in the reports fairly presents the financial condition and results of operations of the company, and that all
material facts have been disclosed. Further, CEOs and CFOs should certify that they have established internal controls to ensure that all
information relating to the operations of the company is freely available to the auditors and the audit committee. They should also
certify that they have evaluated the effectiveness of these controls within ninety days prior to the report. False certifications by the CEO
and CFO should be subject to significant criminal penalties (fines and imprisonment, if willful and knowing). If a company is required to
restate its reports due to material non-compliance with the laws, the CEO and CFO must face severe punishment including loss of job
and forfeiting bonuses or equity-based compensation received during the twelve months following the filing.

Question 55

The problem with the independent directors has been that:

I. Their selection has been based upon their compatibility with the company management
II. There has been lack of proper training and development to improve their skill set
III. Their independent views have often come in conflict with the views of company management. This has hindered the company’s
decision-making process
IV. Stringent standards for independent directors have been lacking

A I and II only

B I, II, and III only

C II, II, and IV only

D I, II and IV only

Answer: D

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Question 56

Which of the following, according to author, does not have an impact on effective corporate governance?

A Increased role and importance of independent directors

B Increased compensation to independent directors

C Not hiring audit firms for other services

D Stringent monitoring and control of related party transactions

Answer: B

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Question 57

To improve the quality and reliability of the information reported in the financial statements:
I. Accounting standards should keep pace with the dynamic business environment
II. There should be a body of internal auditors to oversee the functioning of external auditors
III. Reports should be certified by key company officials
IV. Accounting standards should be set by a body comprising of practicing accountants only and this body should be funded from a
corpus built up from the contributions made by the companies

A I, and II

B II, and III

C I, and III

D I, III, and IV

Answer: C

Explanation:
Statement I can be inferred from the eleventh paragraph
Internal auditors have not been mentioned in the passage. Statement II is incorrect.
Statement III can be inferred from the last paragraph.
It is given in the passage that the body should comprise a "majority of non- practicing accountants to ensure independent oversight.
Statement IV is wrong.

Hence, option C is the correct answer.

Question 58

Which of the following may not help in improving in the accountability of management to the shareholders?

A A third party assessment of the performance of independent directors

B Rotation of audit partner

C Increasing the fixed component in the salary structure of the management

D Laying down a proper procedure for handling complaints regarding unethical practices

Answer: C

Explanation:
Option A : Consider the sentence:- The assessment should focus on issues like competence, preparation, participation and
contribution. Ideally, this evaluation should be performed by a third party. This option surely improves accountability. Hence it is
incorrect

Option B : The lead audit partner and the audit partner responsible for reviewing a company’s audit must be rotated at least once every
three to five years. This option is also incorrect

Option D : The audit committee should establish procedures for the treatment of complaints received through anonymous submission
by employees and whistle-blowers. This option also improves the accountability of the management to the shareholders. Hence this
option is also incorrect.

Option C is not mentioned anywhere in the passage. Hence it is the most suitable option.

Free Mock Test for IIFT

Question 59

The author of the passage does not advocate:

A Increased activism of independent directors

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 Measures to improve the independence of auditors
B

C Framing the accounting standards in the light of changing business conditions

D Active intervention by the regulators in the day-to- day functioning of the company

Answer: D

Explanation:
Option A : Consider the sentence "As part of the board meeting agenda, the independent directors should have a meeting among
themselves without the management being present." The author definitely advocates increased activism by the independent directors.
Option B : Consider the sentence "Hence, an independent body should be constituted to oversee the functioning of auditors for
Independence, the quality of audit and professional competence." The author calls for measures to improve the independence of
auditors.

Option C : Consider the sentence "Accounting standards do not always keep pace with changes in the business environment. Hence,
the accounting standards-setting body should include members drawn from the industry, the profession and regulatory bodies." The
author says that the accounting standards should be modified based on the changing business conditions.

Hence all these options are advocated by the author.

The author does not advocate option D. Hence option D is the correct answer.

Instructions

I suggest that the essential character of the Trade Cycle and, especially, the regularity of time-sequence and of duration which justifies
us in calling it a cycle, is mainly due to the way in which the marginal efficiency of capital fluctuates. The Trade Cycle is best regarded, I
think, as being occasioned by a cyclical change in the marginal efficiency of capital, though complicated and often aggravated by
associated changes in the other significant short period variables of the economic system.

By a cyclical movement we mean that as the system progresses in, e.g. the upward direction, the forces propelling it upwards at first
gather force and have a cumulative effect on one another but gradually lose their strength until at a certain point they tend to be
replaced by forces operating in the opposite direction; which in turn gather force for a time and accentuate one another, until they too,
having reached their maximum development, wane and give place to their opposite. We do not, however, merely mean by a cyclical
movement that upward and downward tendencies, once started, do not persist for ever in the same direction but are ultimately
reversed. We mean also that there is some recognizable degree of regularity in the time-sequence and duration of the upward and
downward movements. There is, however, another characteristic of what we call the Trade Cycle which our explanation must cover if it
is to be adequate; namely, the phenomenon of the ‘crisis’ the fact that the substitution of a downward for an upward tendency often
takes place suddenly and violently, whereas there is, as a rule, no such sharp turning-point when an upward is substituted for a
downward tendency. Any fluctuation in investment not offset by a corresponding change in the propensity to consume will, of course,
result in a fluctuation in employment. Since, therefore, the volume of investment is subject to highly complex influences, it is highly
improbable that all fluctuations either in investment itself or in the marginal efficiency of capital will be of a cyclical character.

We have seen above that the marginal efficiency of capital depends, not only on the existing abundance or scarcity of capital-goods and
the current cost of production of capital- goods, but also on current expectations as to the future yield of capital-goods. In the case of
durable assets it is, therefore, natural and reasonable that expectations of the future should play a dominant part in determining the
scale on which new investment is deemed advisable. But, as we have seen, the basis for such expectations is very precarious. Being
based on shifting and unreliable evidence, they are subject to sudden and violent changes. Now, we have been accustomed in
explaining the ‘crisis’ to lay stress on the rising tendency of the rate of interest under the influence of the increased demand for money
both for trade and speculative purposes. At times this factor may certainly play an aggravating and, occasionally perhaps, an initiating
part. But I suggest that a more typical, and often the predominant, explanation of the crisis is, not primarily a rise in the rate of interest,
but a sudden collapse in the marginal efficiency of capital. The later stages of the boom are characterized by optimistic expectations as
to the future yield of capital goods sufficiently strong to offset their growing abundance and their rising costs of production and,
probably, a rise in the rate of interest also. It is of the nature of organized investment markets, under the influence of purchasers largely
ignorant of what they are buying and of speculators who are more concerned with forecasting the next shift of market sentiment than
with a reasonable estimate of the future yield of capital-assets, that, when disillusion falls upon an over-optimistic and over- bought
market, it should fall with sudden and even catastrophic force. Moreover, the dismay and uncertainty as to the future which
accompanies a collapse in the marginal efficiency of capital naturally precipitates a sharp increase in liquidity-preference and hence a
rise in the rate of interest. Thus the fact that a collapse in the marginal efficiency of capital tends to be associated with a rise in the rate
of interest may seriously aggravate the decline in investment. But the essence of the situation is to be found, nevertheless, in the
collapse in the marginal efficiency of capital, particularly in the case of those types of capital which have been contributing most to the
previous phase of heavy new investment. Liquidity preference, except those manifestations of it which are associated with increasing
trade and speculation, does not increase until after the collapse in the marginal efficiency of capital. It is this, indeed, which renders the
slump so intractable.

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Question 60

Which of the following does not describe the features of cyclical movement?

A There is a cyclical change in the marginal efficiency of capital

B The movement once starts in upward or downward direction does not get reversed

C The time pattern and the duration of economic movements are recognizable

D It is caused by the economic force working in opposite direction

Answer: B

Explanation:
From the second paragraph, we can infer that the cycle can be reversed. So, option B is factually wrong.

Hence, option B is the correct answer.

Question 61

Marginal efficiency of the capital does not depend on which of following factors?

A Demand and supply of capital goods

B Cost of production of capital goods

C Expectations regarding future return from capital goods

D Availability of capital

Answer: D

Explanation:
We have seen above that the marginal efficiency of capital depends, not only on the existing abundance or scarcity of capital-goods and
the current cost of production of capital- goods, but also on current expectations as to the future yield of capital-goods - From these
lines, options A, B and C can be inferred.

Availability of capital is nowhere mentioned as a factor on which marginal efficiency depends.

Hence, option D is the correct answer.

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Question 62

Which of the following explains the phenomenon of crisis?

I. A sudden collapse in the marginal efficiency of capital
II. Increase in the rate of interest causing the decline in investments
III. A sudden and violent substitution of upward movement by a downward tendency
IV. Decline in the liquidity preference of the investors

A I & II

B I, II, and III

C I, II, and IV

D II, III, and IV

Answer: B

Explanation:
In the 1st paragraph it is mentioned that "the phenomenon of the ‘crisis’ the fact that the substitution of a downward for an upward

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tendency often takes place suddenly", from this option III can be concluded.

In the 2nd paragraph it is mentioned that "explanation of the crisis is, not primarily a rise in the rate of interest, but a sudden collapse in
the marginal efficiency of capital. The later stages of the boom are characterized by optimistic expectations as to the future yield of
capital goods sufficiently strong to offset their growing abundance and their rising costs of production and, probably, a rise in the rate of
interest also.

From this option I and II can be concluded.

Thus, option B is the correct answer.

Instructions

The broad scientific understanding today is that our planet is experiencing a warming trend over and above natural and normal
variations that is almost certainly due to human activities associated with large-scale manufacturing. The process began in the late
1700s with the Industrial Revolution, when manual labor, horsepower, and water power began to be replaced by or enhanced by
machines. This revolution, over time, shifted Britain, Europe, and eventually North America from largely agricultural and trading
societies to manufacturing ones, relying on machinery and engines rather than tools and animals.

The Industrial Revolution was at heart a revolution in the use of energy and power. Its beginning is usually dated to the advent of the
steam engine, which was based on the conversion of chemical energy in wood or coal to thermal energy and then to mechanical work
primarily the powering of industrial machinery and steam locomotives. Coal eventually supplanted wood because, pound for pound,
coal contains twice as much energy as wood (measured in BTUs, or British thermal units, per pound) and because its use helped to save
what was left of the world's temperate forests. Coal was used to produce heat that went directly into industrial processes, including
metallurgy, and to warm buildings, as well as to power steam engines. When crude oil came along in the mid- 1800s, still a couple of
decades before electricity, it was burned, in the form of kerosene, in lamps to make light replacing whale oil. It was also used to provide
heat for buildings and in manufacturing processes, and as a fuel for engines used in industry and propulsion.

In short, one can say that the main forms in which humans need and use energy are for light, heat, mechanical work and motive power,
and electricity which can be used to provide any of the other three, as well as to do things that none of those three can do, such as
electronic communications and information processing. Since the Industrial Revolution, all these energy functions have been powered
primarily, but not exclusively, by fossil fuels that emit carbon dioxide (CO2), To put it another way, the Industrial Revolution gave a whole
new prominence to what Rochelle Lefkowitz, president of Pro-Media Communications and an energy buff, calls "fuels from hell" - coal,
oil, and natural gas. All these fuels from hell come from underground, are exhaustible, and emit CO2 and other pollutants when they are
burned for transportation, heating, and industrial use. These fuels are in contrast to what Lefkowitz calls "fuels from heaven" -wind,
hydroelectric, tidal, biomass, and solar power. These all come from above ground, are endlessly renewable, and produce no harmful
emissions.

Meanwhile, industrialization promoted urbanization, and urbanization eventually gave birth to suburbanization. This trend, which was
repeated across America, nurtured the development of the American car culture, the building of a national highway system, and a
mushrooming of suburbs around American cities, which rewove the fabric of American life. Many other developed and developing
countries followed the American model, with all its upsides and downsides. The result is that today we have suburbs and ribbons of
highways that run in, out, and around not only America s major cities, but China's, India's, and South America's as well. And as these
urban areas attract more people, the sprawl extends in every direction.

All the coal, oil, and natural gas inputs for this new economic model seemed relatively cheap, relatively inexhaustible, and relatively
harmless-or at least relatively easy to clean up afterward. So there wasn't much to stop the juggernaut of more people and more
development and more concrete and more buildings and more cars and more coal, oil, and gas needed to build and power them.
Summing it all up, Andy Karsner, the Department of Energy's assistant secretary for energy efficiency and renewable energy, once said to
me: "We built a really inefficient environment with the greatest efficiency ever known to man."

Beginning in the second half of the twentieth century, a scientific understanding began to emerge that an excessive accumulation of
largely invisible pollutants-called greenhouse gases - was affecting the climate. The buildup of these greenhouse gases had been under
way since the start of the Industrial Revolution in a place we could not see and in a form we could not touch or smell. These greenhouse
gases, primarily carbon dioxide emitted from human industrial, residential, and transportation sources, were not piling up along
roadsides or in rivers, in cans or empty bottles, but, rather, above our heads, in the earth's atmosphere. If the earth's atmosphere was
like a blanket that helped to regulate the planet's temperature, the CO2 buildup was having the effect of thickening that blanket and
making the globe warmer.

Those bags of CO2 from our cars float up and stay in the atmosphere, along with bags of CO2 from power plants burning coal, oil, and
gas, and bags of CO2 released from the burning and clearing of forests, which releases all the carbon stored in trees, plants, and soil. In
fact, many people don't realize that deforestation in places like Indonesia and Brazil is responsible for more CO2 than all the world's
cars, trucks, planes, ships, and trains combined - that is, about 20 percent of all global emissions. And when we're not tossing bags of
carbon dioxide into the atmosphere, we're throwing up other greenhouse gases, like methane (CH4) released from rice farming,
petroleum drilling, coal mining, animal defecation, solid waste landfill sites, and yes, even from cattle belching. Cattle belching? That's
right-the striking thing about greenhouse gases is the diversity of sources that emit them. A herd of cattle belching can be worse than a
highway full of Hummers. Livestock gas is very high in methane, which, like CO2, is colorless and odorless. And like CO2, methane is one
of those greenhouse gases that, once released into the atmosphere, also absorb heat radiating from the earth's surface. "Molecule for

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molecule, methane's heat-trapping power in the atmosphere is twenty-one times stronger than carbon dioxide, the most abundant
greenhouse gas.." reported Science World (January 21, 2002). “With 1.3 billion cows belching almost constantly around the world (100
million in the United States alone), it's no surprise that methane released by livestock is one of the chief global sources of the gas,
according to the U.S. Environmental Protection Agency ... 'It's part of their normal digestion process,' says Tom Wirth of the EPA. 'When
they chew their cud, they regurgitate [spit up] some food to rechew it, and all this gas comes out.' The average cow expels 600 liters of
methane a day, climate researchers report."

What is the precise scientific relationship between these expanded greenhouse gas emissions and global warming? Experts at the Pew
Center on Climate Change offer a handy summary in their report "Climate Change 101. " Global average temperatures, notes the Pew
study, "have experienced natural shifts throughout human history. For example; the climate of the Northern Hemisphere varied from a
relatively warm period between the eleventh and fifteenth centuries to a period of cooler temperatures between the seventeenth century
and the middle of the nineteenth century. However, scientists studying the rapid rise in global temperatures during the late twentieth
century say that natural variability cannot account for what is happening now." The new factor is the human factor-our vastly increased
emissions of carbon dioxide and other greenhouse gases from the burning of fossil fuels such as coal and oil as well as from
deforestation, large-scale cattle-grazing, agriculture, and industrialization.

“Scientists refer to what has been happening in the earth’s atmosphere over the past century as the ‘enhanced greenhouse effect’”,
notes the Pew study. By pumping man- made greenhouse gases into the atmosphere, humans are altering the process by which
naturally occurring greenhouse gases, because of their unique molecular structure, trap the sun’s heat near the earth’s surface before
that heat radiates back into space.

"The greenhouse effect keeps the earth warm and habitable; without it, the earth's surface would be about 60 degrees Fahrenheit colder
on average. Since the average temperature of the earth is about 45 degrees Fahrenheit, the natural greenhouse effect is clearly a good
thing. But the enhanced greenhouse effect means even more of the sun's heat is trapped, causing global temperatures to rise. Among
the many scientific studies providing clear evidence that an enhanced greenhouse effect is under way was a 2005 report from NASA's
Goddard Institute for Space Studies. Using satellites, data from buoys, and computer models to study the earth's oceans, scientists
concluded that more energy is being absorbed from the sun than is emitted back to space, throwing the earth's energy out of balance
and warming the globe."

Question 63

Which of the following statements is correct?

(I) Greenhouse gases are responsible for global warming. They should be eliminated to save the planet
(II) CO2 is the most dangerous of the greenhouse gases. Reduction in the release of CO2 would surely bring down the temperature
(III) The greenhouse effect could be traced back to the industrial revolution. But the current development and the patterns of life have
enhanced their emissions
(IV) Deforestation has been one of the biggest factors contributing to the emission of greenhouse gases Choose the correct option:

A I and III

B II and III

C II, III, and IV

D III and IV

Answer: D

Question 64

Which of the following statements is incorrect?

A Natural and controlled greenhouse effect is good for earth

As a measure to check global warming, prevention of destruction of forests needs to be given priority over reduction in fuel
B
emission

C Greenhouse gases trap the sun’s heat from radiating back into the space making the earth surface warmer

D It is for the first time in human evolution that the global temperatures have started to witness a shift

Answer: D

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 Download IIFT GK PDFs
Question 65

Increasing warming of earth has been due to:

(I) Increased manual intervention in the manufacturing process
(II) The fallout of mechanization of production
(III) Industrial revolution
(IV) Over reliance on non- replenishible energy sources Choose the correct option:

A I, II, and IV

B I, III and IV

C I, II, III, and IV

D II, III, and IV

Answer: D

Question 66

Which of the following according to the passage are the features of “fuels from heaven”?
(I) Replenishability
(II) Storability
(III) Cost-effectiveness
(IV) Harmlessness

A I and II

B II and III

C III, and IV

D I and IV

Answer: D

Instructions

"All raw sugar comes to us this way. You see, it is about the color of maple or brown sugar, but it is not nearly so pure, for it has a great
deal of dirt mixed with it when we first get it." "Where does it come from?" inquired Bob.

"Largely from the plantations of Cuba and Porto Rico. Toward the end of the year we also get raw sugar from Java, and by the time this
is refined and ready for the market the new crop from the West Indies comes along. In addition to this we get consignments from the
Philippine Islands, the Hawaiian Islands, South America, Formosa, and Egypt. I suppose it is quite unnecessary to tell you young men
anything of how the cane is grown; of course you know all that."

"I don't believe we do, except in a general way," Bob admitted honestly. "I am ashamed to be so green about a thing at which Dad has
been working for years. I don't know why I never asked about it before. I guess I never was interested. I simply took it for granted."

"That's the way with most of us," was the superintendent's kindly answer. "We accept many things in the world without actually knowing
much about them, and it is not until something brings our ignorance before us that we take the pains to focus our attention and learn
about them. So do not be ashamed that you do not know about sugar raising; I didn't when I was your age. Suppose, then, I give you a
little idea of what happens before this raw sugar can come to us."

"I wish you would," exclaimed both boys in a breath.

"Probably in your school geographies you have seen pictures of sugar-cane and know that it is a tall perennial not unlike our Indian corn
in appearance; it has broad, flat leaves that sometimes measure as many as three feet in length, and often the stalk itself is twenty feet
high. This stalk is jointed like a bamboo pole, the joints being about three inches apart near the roots and increasing in distance the
higher one gets from the ground."

"How do they plant it?" Bob asked.

"It can be planted from seed, but this method takes much time and patience; the usual way is to plant it from cuttings, or slips. The first

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growth from these cuttings is called plant cane; after these are taken off the roots send out ratoons or shoots from which the crop of
one or two years, and sometimes longer, is taken. If the soil is not rich and moist replanting is more frequently necessary and in places
like Louisiana, where there is annual frost, planting must be done each year. When the cane is ripe it is cut and brought from the field to
a central sugar mill, where heavy iron rollers crush from it all the juice. This liquid drips through into troughs from which it is carried to
evaporators where the water portion of the sap is eliminated and the juice left; you would be surprised if you were to see this liquid. It
looks like nothing so much as the soapy, bluish gray dish-water that is left in the pan after the dishes have been washed."

"A tempting picture!" Van exclaimed.

"I know it. Sugar isn't very attractive during its process of preparation," agreed Mr. Hennessey. "The sweet liquid left after the water has
been extracted is then poured into vacuum pans to be boiled until the crystals form in it, after which it is put into whirling machines,
called centrifugal machines that separate the dry sugar from the syrup with which it is mixed. This syrup is later boiled into molasses.
The sugar is then dried and packed in these burlap sacks such as you see here, or in hogsheads, and shipped to refineries to be
cleansed and whitened."

"Isn't any of the sugar refined in the places where it grows?" queried Bob.

"Practically none. Large refining plants are too expensive to be erected everywhere; it therefore seems better that they should be built in
our large cities, where the shipping facilities are good not only for receiving sugar in its raw state but for distributing it after it has been
refined and is ready for sale. Here, too, machinery can more easily be bought and the business handled with less difficulty."

Question 67

Which one of the following is not a essential condition for setting up sugar refining plants?

A Facilities for transportation of machinery

B Facilities for import of raw material

C Facilities for transportation of finished products

D Proximity to the raw material sources

Answer: D

Explanation:
Options A, B and C are mentioned in the last paragraph.
Option D is not a necessary condition as per the passage.
Hence, option D is the correct answer.

IIFT Free Topic-Wise Important Questions (Study Material)

Question 68

Which of the following is the correct sequence of sugar preparation process?

A Cutting → Crushing → Evaporation → Boiling → Whirling.

B Boiling → Crushing → Evaporation → Whirling → Cutting.

C Cutting → Boiling → Evaporation → Crushing → Whirling.

D Whirling → Crushing → Boiling → Evaporation → Cutting.

Answer: A

Explanation:
"It can be planted from seed, but this method takes much time and patience; the usual way is to plant it from cuttings, or slips. The first
growth from these cuttings is called plant cane; after these are taken off the roots send out ratoons or shoots from which the crop of
one or two years, and sometimes longer, is taken. If the soil is not rich and moist replanting is more frequently necessary and in places
like Louisiana, where there is annual frost, planting must be done each year. When the cane is ripe it is cut and brought from the field to
a central sugar mill, where heavy iron rollers crush from it all the juice. This liquid drips through into troughs from which it is carried to
evaporators where the water portion of the sap is eliminated and the juice left; you would be surprised if you were to see this liquid.

Sugar isn't very attractive during its process of preparation," agreed Mr. Hennessey. "The sweet liquid left after the water has been

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extracted is then poured into vacuum pans to be boiled until the crystals form in it, after which it is put into whirling machines, called
centrifugal machines that separate the dry sugar from the syrup with which it is mixed.

From these lines, we can infer that option A depicts the appropriate sequence of processes in sugar preparation.

Hence, option A is the correct answer.

Question 69

Which of the following statements, as per the paragraph, is incorrect?

A Sugar in its raw form is brownish in colour due to the presence of dirt

B After evaporation, cane juice looks bluish - gray in colour

C Molasses is obtained as a bye-product from the process of sugar production

D Cane plantation and sugar production process is widely and equally spread across the countries.

Answer: D

Explanation:
"Largely from the plantations of Cuba and Porto Rico. Toward the end of the year we also get raw sugar from Java, and by the time this
is refined and ready for the market the new crop from the West Indies comes along. In addition to this we get consignments from the
Philippine Islands, the Hawaiian Islands, South America, Formosa, and Egypt. - From these lines, we can infer that cane plantation and
sugar production process is not equally spread across the countries.

Hence, option D is the correct answer.

Top 500+ Free Questions for IIFT

Section 4 part 2
Instructions

Each of the questions presents a sentence, part of which is underlined. Beneath the sentence you will find four ways of phrasing the
underlined part. Follow the requirements of standard written English to choose your answer, paying attention to grammar, word choice,
and sentence construction. Select the answer that produces the most effective sentence; your answer should make the sentence clear,
exact, and free of grammatical error. It should also minimize awkwardness, ambiguity, and redundancy.

Question 70

When I first became brand manager, we were spending most of our advertising budget to promote our products in the winter. It had
worked in North America and Europe, where people caught colds mainly in that season. Our monthly volume data suggested however
stubbornly we were shipping a lot of VapoRub between July and September, the hot monsoon season.

A Our monthly volume data suggested however that stubbornly

B However, our monthly volume data stubbornly suggested that

C However, our volume data suggested stubbornly that monthly

D Stubbornly speaks our volume data on a monthly basis, however that

Answer: B

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Question 71

The growth rate of companies in several sectors like food, personal care, automobiles, banking and retail in the developed world are
flattening. These companies for maintaining their growth rates and margins are looking upon the emerging market in Asia and Latin
America.

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A These companies for maintaining their growth rates and margins are looking upon the emerging markets in Asia and Latin America.

B To maintain their growth rates and margins these companies look at the emerging markets in Asia and Latin America.

C The emerging markets of Asia and Latin America are looked at by these companies to maintain their growth rates and margins

D These companies are looking at the emerging markets in Asia and Latin America for maintaining their growth rates and margins.

Answer: D

Question 72

People who do good work to the corporation wherever they are whatever they do will be assets to the valued corporation.

A good work to the corporation wherever they are whatever they do will be assets to the valued corporation

B good work - wherever they are, whatever they do - will be valued assets to the corporation

C whatever good they do the corporation, wherever they are will be valued assets

D good to the corporation whatever work they do wherever they are will be valued assets

Answer: B

Question 73

From what landscapes or flowerbeds would future painters draw their inspiration? Would move poets to craft their symphonies,
composers to contemplate the meaning of God, and philosophers write their sonnets.

painters draw their inspiration? Would move poets to craft their symphonies, composers to contemplate the meaning of God, and
A
philosophers write their sonnets.

painters draw their inspiration? Would move poets to write their sonnets, composers to craft their symphonies and philosophers to
B
contemplate the meaning of God

philosophers draw their inspiration? Would move poets to write their sonnets, composers to craft their symphonies, and painters to
C
contemplate the meaning of God

philosophers to contemplate the meaning of God? Would move painters to draw their inspiration, composers to write their sonnets,
D
and poets to craft their symphonies?

Answer: B

Quant Formulas for IIFT PDF

Question 74

Car sales in the country rose at an annualized rate of 7.8% in June, helped by a spate of new models and falling borrowing costs
bringing new buyers back.

A spate of new models and falling borrowing costs bringing new buyers back

B luring of new models and falling borrowing costs bringing new buyers back

C bringing of new models back, spate in borrowing costs, and falling new buyers

D bringing back the borrowing costs, falling in new models, and spate in new models.

Answer: A

Instructions

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Select the most suitable synonym for the underlined word in the sentence.

Question 75

The book did not get much acclaim because of its pedantic style of writing.

A radical

B dogmatic

C esoteric

D applicative

Answer: C

Question 76

The policy announcement was made to the much chagrin of the farmers.

A euphoria

B placation

C glee

D mortification

Answer: D

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Question 77

The leader summoned the group and told that the time has come to act and not genuflect.

A grovel

B procrastinate

C renounce

D incriminate

Answer: A

Question 78

The stentorian honks of the marching fleet could be heard for miles.

A rhythmic

B euphonious

C blaring

D subdues

Answer: C

Question 79

Noticing the behavior of the audience in the amphitheater the performer was more bemused than bitter.

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A amused

B bewildered

C enlightened

D enthused

Answer: B

Download General Science Notes for IIFT PDF

Instructions

Select the most suitable antonym for the underlined word in the sentences.

Question 80

The arguments put forth by the speaker were rather specious, but somehow he got away with them.

A fallacious

B unfeigned

C obscure

D pernicious

Answer: B

Question 81

The trends suggest that most of the new members got themselves deregistered within 7 - 10 days of their joining due to the exacting
instructor.

A insouciant

B discourteous

C grievous

D fastidious

Answer: A

Question 82

The congregation was awestruck at the sight of the levitating saint.

A gravitating

B enchanting

C captivating

D vacillating

Answer: A

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Question 83

By the time she could realize the gravity of the situation she found herself ensnared in the labyrinth of accusations.

A seized

B enmeshed

C intrigued

D released

Answer: D

Question 84

The sub-prime crisis has pushed millions of people in the quagmire of financial indebtedness.

A predicament

B swamp

C tranquility

D impasse

Answer: C

Explanation:
Quagmire means an awkward, complex, or hazardous situation.
Tranquility means the quality or state of being calm.
So, tranquility and quagmire are antonyms.
Hence, option C is the correct answer.

Instructions

Select the most appropriate set of words from the given choices to fill in the blanks.

Question 85

The organization takes its cue from the person on the top. I always told our business leaders their personal____ determined their
organization’s ___.

A serendipity; faux pas

B predilection; despair

C intensity; success

D oddity; conformity

Answer: C

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Question 86

The Himalayas ran from east to west and cut off the cold winds from the north. This allowed agriculture to proper and _____ wealth,
but it also _____ barbarian invaders from the north.

A attracted; dissipated

B created; attracted

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C created; restricted

D attracted; evicted

Answer: B

Question 87

Our ______diversity may also be of some value. Because we have always learned to live with pluralism, it is possible that we may be
better prepared to ______ the diversity of global economy.

A stupefying; negotiate

B plural; alleviate

C variegated; annihilate

D dreary; exasperate

Answer: A

Question 88

My inward petition was instantly______. First, a delightful cold wave descended over my back and under my feet, _________ all
discomfort.

A acknowledged; banishing

B repudiated; infuriating

C acceded; exacerbating

D decimated; assuaging

Answer: A

CMAT Free Solved Previous Papers.

Instructions

A number of sentences are given below which, when properly sequenced, form a COHERENT PARAGRAPH. Choose the most LOGICAL
ORDER of sentence from the choices given to construct a COHERENT PARAGRAPH.

Question 89

A number of sentences are given below which, when properly sequenced, form a COHERENT PARAGRAPH. Choose the most
LOGICAL ORDER of sentence from the choices given to construct a COHERENT PARAGRAPH.

I. As a retention strategy, the company has issued many schemes including ESOPs.
II. Given the track record and success of our employees, other companies often look to us as hunting ground for talent.
III. The growth of the Indian economy has led to an increased requirement for talented managerial personnel and we believe that the
talented manpower is our key strength.
IV. Further, in order to mitigate the risk we place considerable emphasis on development of leadership skills and on building
employee motivation.

A I, II, III, IV

B II, I, IV, III

C II. I, IV

D IV, I, III

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 Answer: C

Explanation:
Statement 2 talks about talented employees being poached, while, statement 1 suggests a retention strategy to this problem..
Statement 4 has the word "Further", suggesting that the 4 is an extended solution to the existing risk or problem(poaching)
Therefore 214 becomes a logical block.

Question 90

I. It reverberates throughout the entire Universe. And you are transmitting that frequency with your thoughts!
II. The frequency you transmit reaches beyond cities, beyond cities, beyond countries beyond the world.
III. You are a human transmission tower, and you are more powerful than any television tower created on earth.
IV. Your transmission creates your life and it creates the world.

A IV, I, III, II

B II, IV, III, I

C III, IV, II, I

D I, II, III, IV

Answer: C

Question 91

I. Asian economies will need alternative sources of growth to compensate for the rapid fall in demand from the western markets.
II. But the crisis has exposed the limits of region’s dominant economic- growth model.
III. The export- led model that propelled many Asian economies so effectively for the past 30 years must be adapted to a different
global economic context.
IV. Asia is less exposed to the financial turmoil than the west is, because Asian countries responded to the previous decade’s regional
crisis by improving their current-account positions, accumulating reserves, and ensuring that their banking systems operated
prudently.

A IV, II, I, III

B I, II, III, IV

C III, I, II, IV

D II, III, IV

Answer: A

MAT Free Solved Previous Papers

Question 92

I. The dangers of conflicting irrational majoritarianism with enlightened consensus are, indeed, great in developing democracy.
II. Real democracy is about mediating the popular will through a network of institutional structure and the law of the land.
III. While law making and governance are meant to articulate the latter, the judiciary is supposed to protect the former from any kind
of excess that might occur, unwittingly or otherwise, in the conduct of legislative and governmental functions.
IV. The principle of separation of powers is meant to embody a desirable tension between individual rights and social consensus.

A I, II, III, IV

B II, I, III, IV

C IV, III, I, II

D II, III, IV

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 Answer: C

Question 93

I. First may be necessary for immediate relief.

II. However, to cure the problem from the root the treatment at the elemental level is a must.
III. Therefore synergy of modern medical science and ancient Indian wisdom is in the interest of humanity.
IV. Allopathic treatment is symptomatic while Ayurveda treats at an elemental level.

A IV, II, I, III

B IV, I, II, III

C IV, III, II

D II, IV, III

Answer: B

Question 94

I. He somehow knew he would find what he was looking for. So, with missionary zeal, he started to climb.
II. So instead, for perhaps the first in his life he shed the shackles of reason and placed his trust in his intuition.
III. At first he thought about hiring a Sherpa guide to aid him in his climb through the mountains, but, for some strange reason, his
instincts told him this was one journey he would have to make alone.
IV. The next morning, as the first rays of the Indian sun danced along the colorful horizon, Julian set out his trek to the lost land of
Savana.

A I, II, III, IV

B III, IV, I, II

C I, III, II, IV

D IV, III, II, I

Answer: D

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(Download PDF)

Section III
Instructions
For the following questions answer them individually

Question 95
1 100
Fortuner, the latest SUV by Toyota Motors, consumes diesel at the rate of 400 ( x + x) liters per km, when driven at the speed of x
km per hour. If the cost of diesel is Rs. 35 per litre and the driver is paid at the rate of Rs. 125 per hour then find the approximate
optimal speed (in km per hour) of Fortuner that will minimize the total cost of the round trip of 800 kms.

A 39

B 38

C 49

D 53

Answer: A

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Explanation:
1 100
SUV consumes diesel at the rate of 400 ( x + x) liters per km

Cost of 1 liter diesel is Rs. 35

Total distance to be covered is 800 kms

1 100
Therefore total cost of diesel consumption by SUV is 400 ( x + x)*35*800
800
Per hour Chargers of Driver is Rs. 125 and total time is x
100000
Therefore total cost of driver is x
100000 1 100
Total Cost = x + 400 ( x + x)*35*800
107000
= x + 70x

We need total cost to be minimum so differentiating total cost w.r.t x and equating to 0 we get
107000
0=- x2 + 70
107000
i.e. x2 = 70

x = 39 approximately

Therefore option 'A' is the answer

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Question 96

Two motorists Anil and Sunil are practising with two different sports cars: Ferrari and Maclaren, on the circular racing track, for the
car racing tournament to be held next month. Both Anil and Sunil start from the same point on the circular track. Anil completes one
round of the track in 1 minute and Sunil takes 2 minutes to complete for a round. While Anil maintains same speed for all the rounds,
Sunil halves his speed after the completion of each round. How many times Anil and Sunil will meet between the 7th round and 8th
round of Sunil (meeting at the starting point of 7th round is excluded)? Assume that the speed of Sunil remains steady throughout
each
round and changes only after the completion of that round.

A 260

B 347

C 382

D None of the above

Answer: C

Explanation:
Distance
Since Time = Speed therefore as Sunil halves his speed the time required to complete the round will double therefore time required
for Round 1 = 2 mins

Round 2 = 4 mins

Round 3 = 8 mins

Round 4 = 16 mins

Round 5 = 32 mins

Round 6 = 64 mins

Round 7 = 128 mins

Round 8 = 256 mins

Round 9 = 512 mins

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The time required by Anil for Round 1 to Round 9 = 1 mins each

Thus, in the first two minutes, Sunil finished his 1st round, at the same time Anil finished 2 rounds.

When Sunil finished his 6th round, at the same time Anil finished his =2+4+8+16+32+64 rounds

Now for the 7th round of Sunil, he will take 128 mins.

Thus Anil will run 128 rounds.

Thus both of them will meet 128-1 =127 times

Now for the 8th round of Sunil, he will take 256 mins.

Thus Anil will run 256 rounds.

Thus both of them will meet 256-1 =255 times

= 255 + 127

= 382

Therefore answer is option 'C'

Question 97

The sum of the series is:

1 1 1
1.2.3 + 3.4.5 + 5.6.7 + ...

A e2 − 1

B loge 2 − 1

C 2 log10 2 − 1

D None of the above

Answer: D

Explanation:
1 1 1
1.2.3 + 3.4.5 + 5.6.7 + ... = 0.166..+0.0166..+0.00476..+..... which is always <0.2 but a positive number.
Option A = e2 - 1 = 7.34 - 1 = 6.34 therefore this cannot be the Answer
log10 2 log10 2
Option B = loge 2 − 1 = log10 e - 1 = log10 2.72 - 1
log10 2 log10 2
We know that the value of log10 2.72 < 1 and therefore value of log10 2.72 - 1 < 0

therefore this cannot be the Answer

Option C = 2 log10 2 − 1 = log10 4 − 1

We know that the value of log10 4 < 1 and therefore value of log10 4 − 1 < 0

therefore this cannot be the Answer

Therefore the Answer is option 'D'

Question 98
x x
If log2 x. log 64 2 = log 16 2. Then x is

A 2

B 4

C 16

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D 12

Answer: B

Explanation:
x x
log2 x. log 64 2 = log 16 2
logx log2 log2
i.e. log2 ∗ logx−log64 = logx−log16
logx∗(logx−log16)
i.e. logx−log64 = log 2
let t = log x
t∗(t−log16)
Therefore, t−log64 = log 2
t2 − 4 ∗ log2 ∗ t = t ∗ log2 − 6 ∗ (log2)2
I.e. t2 − 5 ∗ log2 ∗ t − 6 ∗ (log2)2 = 0

I.e. t2 − 3 ∗ log2 ∗ t − 2 ∗ log2 ∗ t − 6 ∗ (log2)2 = 0

i.e. t ∗ (t − 3 ∗ log2) − 2 ∗ log2 ∗ (t − 3 ∗ log2) = 0

i.e t = 2 ∗ log2 or t = 3 ∗ log2

i.e logx = log4 or logx = log8

therefore x = 4 or 8

therefore our answer is option 'B'

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Question 99

A right circular cone is enveloping a right circular cylinder such that the base of the cylinder rests on the base of the cone. If the
radius and the height of the cone is 4 cm and 10 cm respectively, then the largest possible curved surface area of the cylinder of
radius r is:

A 20πr2

B 5πr(4 − r)

C 5πr(r − 4)

D 5πr(2 − r)
Answer: B

Explanation:
Top face will look like the figure shown below.

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Curved surface area of the cylinder = 2 ∗ π ∗ r ∗ h

To calculate height of the cylinder in terms of 'r', we can see that △ADC is similar to △EFC.

Therefore,
AD EF
DC = F C
10 h
⇒ 4 = 4 − r
5
⇒ h = 2 (4 − r)
5
Therefore, the curved surface area of the cylinder = 2 ∗ π ∗ r ∗ 2 (4 − r) = 5πr(4 − r).

Hence, option B is the correct answer.

Question 100

Radius of a spherical balloon, of radii 30 cm, increases at the rate of 2 cm per second. Then its curved surface area increases by:

A 120π

B 480π

C 600π

D None of the above

Answer: B

Explanation:
It is given that radius, R = 30 cm.

Curved surface area, S= 4π ∗ R2

dS dR
dt = 4π ∗ (2R) ∗ dt
dR
It is given that dt = 2.

dS
Hence, dt = 4π ∗ (2 ∗ 30) ∗ 2 = 480π. Hence, option B is the correct answer.

Question 101

Mohan was playing with a square cardboard of side 2 metres. While playing, he sliced off the corners of the cardboard in such a
manner that a figure having all its sides equal was generated. The area of this eight sided figure is:

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 4 2
A ( 2 +1)

4
B ( 2 +1)

2 2
C ( 2 +1)

8
D ( 2 +1)

Answer: D

Explanation:
We can see that we will get a regular octagon as shown in the figure below.

Let 'a' be the length of the side of the regular octagon.

a a
Hence, we can say that, 2 +a+ 2 =2

2
⇒a = 2 + 1.

Area of a regular octagon = 2 ∗ (1 + 2) ∗ a 2

2
⇒ 2 ∗ (1 + 2 ) ∗ ( 2 + 1 )2

8
⇒ ( 2 + 1) .

Therefore, option D is the correct answer.

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Question 102

Because of economic slowdown, a multinational company curtailed some of the allowances of its employees. Rashid, the marketing
manager of the company whose monthly salary has been reduced to Rs.42000 is unable to cut down his expenditure. He finds that
there is a deficit of Rs.2000 between his earnings and expenses in the first month. This deficit, because of inflationary pressure, will
keep on increasing by Rs.500 every month. Rashid has a saving of Rs.60000 which will be used to fill this deficit. After his savings get
exhausted, Rashid would start borrowing from his friends. How soon will he start borrowing?

A 10th month

B 11th month

C 12th month

D 13th month

Answer: D

Explanation:
first month he will have deficiency of 2000, second month he will have deficiency of 2500, Third month he will have deficiency of 3000,
and so on

He won't borrow until all of his savings (60000) gets exhausted i.e. until 60000 - (2000 + 2500 + 3000 + ........ up to nth month ) becomes
negative
n
i.e 60000 < 2 ∗ (4000 + (n − 1)500)

I.e. 1200<n*(35+5n)

i.e 240<n*(7+n)

This condition first becomes true for n=13 therefore Rashid will have to borrow from 13th month

Therefor the answer is option 'D'

Question 103

The number of distinct terms in the expansion of (X + Y + Z + W )30 are:

A 4060

B 5456

C 27405

D 46376

Answer: B

Explanation:
All the terms of the expansion (X + Y + Z + W )30 are of the form k ∗ X a ∗ Y b ∗ Z c ∗ W d where a,b,c,d are all positive integers
and a+b+c+d=30

We need to find number of solutions of above equation and that will be the number of distinct terms in the expansion

number of solutions of equation a+b+c+d=30 is given by (n + r − 1)Cr−1 here n = 30 and r = 4

therefore number of solutions = (33)C3 = 5456

Therefore our answer is Option 'B'

Question 104

A card is drawn at random from a well shuffled pack of 52 cards.

X: The card drawn is black or a king.
Y: The card drawn is a club or a heart or a jack.
Z: The card drawn is an ace or a diamond or a queen.
Then which of the following is correct?

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A P (X) > P (Y ) > P (Z)

B P (X) ≥ P (Y ) = P (Z)

C P (X) = P (Y ) > P (Z)

D P (X) = P (Y ) = P (Z)
Answer: C

Explanation:
For X:-
26
Probability that the card drawn is a black card = 52
4
Probability that the card drawn is a king = 52
2
Probability that the card drawn is a black king = 52
26 4 2 28
Therefore probability The card drawn is black or a king. = 52 + 52 - 52 = 52

For Y:-
13
Probability that the card drawn is a club card = 52
13
Probability that the card drawn is a heart card = 52
4
Probability that the card drawn is a jack = 52
2
Probability that the card drawn is a jack of club or a jack of heart = 52
13 13 4 2 28
Therefore probability The card drawn is a club or a heart or a jack = 52 + 52 + 52 - 52 = 52

For Z:-
13
Probability that the card drawn is a diamond card = 52
4
Probability that the card drawn is an ace card = 52
4
Probability that the card drawn is a queen card = 52
2
Probability that the card drawn is a diamond card of ace or queen = 52
13 4 4 2 19
Therefore the probability The card drawn is an ace or a diamond or a queen. = 52 + 52 + 52 - 52 = 52

Therefore, P (X) = P (Y ) > P (Z)

Therefore option C is the correct answer.

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Question 105

Let A1 be a square whose side is a metres. Circle C1 circumscribes the square A1 such that all its vertices are on C1 . Another square
A2 circumscribes C1 . Circle C2 circumscribes A2 , and A3 circumscribes C2 , and so on. If DN is the area between the square AN
and the circle CN , where N is a natural number, then the ratio of the sum of all DN to D1 is:

A 1

n
B 2 −1

C Infinity

D None of the above

Answer: C

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Explanation:

Is the condition for n = 2 and this will go on for higher values of n

as can be seen the area between square 1 and circle 1 is finite , square 2 and circle 2 is finite and so on

sum of all these areas for a higher value of n will become infinite

Therefore our answer is option 'C'

Question 106

Mr. Raheja, the president of Alpha Ltd., a construction company, is studying his company’s chances of being awarded a Rs. 1,000
crore bridge building contract in Delhi. In this process, two events interest him. First, Alpha’s major competitor Gamma Ltd, is trying
to import the latest bridge building technology from Europe, which it hopes to get before the deadline of the award of contact.
Second, there are rumors that Delhi Government is investigating all recent contractors and Alpha Ltd is one of those contractors, while
Gamma Ltd is not one of those. If Gamma is able to import the technology and there is no investigation by the Government, then
Alpha’s chance of getting contract is 0.67. If there is investigation and Gamma Ltd is unable to import the technology in time, the
Alpha’s chance is 0.72. If both events occur, then Alpha’s chance of getting the contract is 0.58 and if none events occur, its chances
are 0.85. Raheja knows that the chance of Gamma Ltd being able to complete the import of technology before the award date is 0.80.
How low must the probability of investigation be, so that the probability of the contract being awarded to Alpha Ltd is atleast 0.65?
(Assume that occurrence of investigation and Gamma’s completion of import in time is independent to each other.)

A 0.44

B 0.57

C 0.63

D 0.55

Answer: B

Explanation:
Let x be the probability of investigation.
Let us indicate the event of the investigation happening to be I.
=>Event of investigation not happening = I'
Similarly, let us indicate the event of importing the technology to be T.
=> The event of technology not getting imported before the deadline = T'
The probability of Alpha getting the contract, P(A) = P(A|I&T)P(I&T)+P(A|I'&T)P(I'&T)+P(A|I&T')P(I&T')+P(A|I'&T')P(I'&T')

Alpha's chances of getting a contract:-

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1. If Gamma is able to import the technology and there is no investigation by the Government, P(A|I'&T)P(I'&T) = 0.8*0.67*(1-x)

2. If there is investigation and Gamma Ltd is unable to import the technology in time, P(A|I&T')P(I&T') = 0.72*0.2*x

3. If both events occur, P(A|I&T)P(I&T) = 0.8*0.58*x

4. If none events occur,P(A|I'&T')P(I'&T') = 0.85*0.2*(1-x)

The probability of the contract being awarded to Alpha Ltd is = 0.8*0.67*(1-x) + 0.72*0.2*x + 0.8*0.58*x + 0.85*0.2*(1-x) ≥0.65

0.536 - 0.536x + 0.144x + 0.464x + 0.17 - 0.17x ≥0.65

i.e. 0.056 ≥ 0.098x

i.e. 0.057 ≥ x

Therefore, option B is the right answer.

Question 107

A, V and Y alone can do a job in 6 weeks, 9 weeks and 12 weeks respectively. They work together for 2 weeks. Then A leaves the job.
V leaves the job a week earlier to the completion of the work. The job would be completed in:

A 4 weeks

B 5 weeks

C 7 weeks

D None of the above

Answer: A

Explanation:
1
Amount of work done by A in one week = 6
1
Amount of work done by V in one week = 9
1
Amount of work done by Y in one week = 12
1 1 1 13
Therefore Amount of work done by A, V and Y in one week = 6 + 9 + 12 = 36
26
They work together for 2 weeks therefore work done in these 2 weeks is = 36
26 10
Amount of work remaining is = 1 - 36 = 36
1 1 7
Amount of work done by V and Y in one week = 9 + 12 = 36

If total number of weeks required to complete the work is n then only V and Y work together for (n-3) weeks
7∗(n−3)
Therefore work done in these (n-3) weeks is = 36

10 7∗(n−3)
Remaining 36 - 36 is completed by Y in one week
10 7∗(n−3) 1
Therefore 36 - 36 = 12

Solving we get n = 4

Therefore The job would be completed in 4 weeks

Therefore our answer is option 'A'

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Question 108

In 2006, Raveendra was allotted 650 shares of Sun Systems Ltd in the initial public offer, at the face value of Rs. 10 per share. In
2007, Sun Systems declared the bonus at the rate of 3 : 13. In 2008, the company again declared the bonus at the rate of 2 : 4. In
2009, the company declared a dividend of 12.5%. How much dividend does Raveendra get in 2009 as a percentage of his initial
investment?

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A 24.5%

B 23.9%

C 24.1%

D 23%

Answer: D

Explanation:
Bonus share received in 2007 = 650 * (3/13) = 150
Bonus share received in 2008 = 800 * (1/2) = 400
So, has has (150 + 400) = 550 extra shares
Dividend of the share is always issued on face value irrespective of market value
Dividend = (Total value of shares) * (Percentage of dividend)
12.5
1200 ∗ 10 ∗ 100 1200 1 3
Dividend he will get = 650 ∗ 10 = 650 ∗ 8 = 13 = 23%
Hence, option D is the correct answer.

Instructions

Read the following information carefully and answer the questions

A warship and a submarine (completely submerged in water) are moving horizontally in a straight line. The Captain of the warship
observers that the submarine makes an angle of depression of 30°, and the distance between them from the point of observation is 50
km. After 30 minutes, the angle of depression becomes 60°.

Question 109

Find the distance between them after 30 min from the initial point of reference.

50
A 3 km

B 25km
25
C 3 km

D 25 3
Answer: A

Explanation:

Let the initial position of the warship be A and initial and final positions of the submarine be P and Q respectively.

AP = 50km
In △ APN
AN
=> sin30 = AP
1 AN
=> 2 = 50

50
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 50
=> AN = 2 = 25km

=> BM = AN = 50km

∴ In △ BMQ
BM
=> sin60 = BQ
3 25
=> 2 = BQ
50
=> BQ = 3 km

Question 110

If both are moving in same direction and the submarine is ahead of the warship in both the situations, then the speed of the warship, if
the ratio of the speed of warship to that of the submarine is 2 : 1, is:

100
A 3 km/hr

B 100 3km/hr

C 200 3km/hr
200
D 3 km/hr

Answer: D

Explanation:

Let the initial position of the warship be A and initial and final positions of the submarine be P and Q respectively.

AP = 50km
Ratio of speed of warship to submarine = 2 : 1

=> AB = 2P Q ---------------Eqn(I)

In △ APN
AN
=> sin30 = AP
1 AN
=> 2 = 50
50
=> AN = 2 = 25km

=> BM = AN = 50km

Similarly, P N = 25 3 = AR
∴ In △ BMQ
BM
=> sin60 = BQ
3 25
=> 2 = BQ
50
=> BQ = 3 km

25
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 25
Similarly, MQ = 3

Let RB = P M = x and using Eqn (I), we get :

=> (AR + RB) = 2(P M + MQ)

25
=> (25 3 + x) = 2(x + 3

50
=> (25 3 + x) = 2x + 3

50
=> 2x − x = 25 3− 3

25
=> x = 3

25
∴ AB = 25 3 + 3

100
=> AB = 3

100 200
∴ Speed of warship = 2 × 3 = 3 km/h

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Instructions
For the following questions answer them individually

Question 111

Kartik’s mother asked him to get the vegetables, milk and butter from the market and gave him the money in the denomination of 1
Rupee, 2 Rupee and 5 Rupee coins. Kartik first goes to the grocery shop to buy vegetables. At the grocery shop he gives half of his 5
Rupee coins and in return receives the same number of 1 Rupee coins. Next he goes to a dairy shop to buy milk and butter and gives
all 2 Rupee coins and in return gets thirty 5 Rupee coins which increases the number of 5 Rupee coins to 75% more than the original
number. If the number of 1 Rupee coins now is 50, the number of 1 Rupee and 5 Rupee coins originally were:

A 10, 60

B 10, 70

C 10, 80

D None of the above

Answer: D

Explanation:
Let the number of 1 rupee , 2 rupee and 5 rupee coins be x, y and z respectively

At the grocery store he gives half of his 5 Rupee coins and in return receives the same number of 1 Rupee coins i.e z now become 0.5z
and x now becomes x+0.5z

At the dairy store he gives all 2 Rupee coins and in return gets thirty 5 Rupee coins which increases the number of 5 Rupee coins to 75%
more than the original number i.e now y = 0 and 0.5z = 0.5z+30

Also given 0.5z+30 = 1.75z

i.e. z=24

Also given that number of 1 Rupee coins now is 50 i.e. x+0.5z = 50

i.e. x = 38

Therefore the number of 1 Rupee and 5 Rupee coins originally were 38 and 24 respectively.

Therefore our answer is Option 'D'

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Question 112

Sukriti and Saloni are athletes. Sukriti covers a distance of 1 km in 5 minutes and 50 seconds, while Saloni covers the same distance
in 6 minutes and 4 seconds. If both of them start together and run at uniform speed, approximately by what distance will Sukriti win a
5 km mini marathon:

A 150 m

B 200 m

C 175 m

D 225 m

Answer: B

Explanation:
Sukriti covers a distance of 1 km in 5 minutes and 50 seconds therefore will cover 5 kms in 25 mins 250 secs = 29.16 mins
1
Saloni covers the 1 km in 6 minutes and 4 seconds therefore her speed is 6.06 kms per minute
1
Therefore Distance Covered by Saloni in 29.16 mins is 29.16 mins* 6.06 ≈ 4.8 kms

Therefore the distance with which Sukriti will win a 5 km mini marathon is ≈ 200 meters

therefore our answer is option 'B'

Question 113

Find the ratio of shaded area to unshaded area

1
A 5( 21 − 2)

1
B 5 (3 7 − 2)

1
C 5 (3 7 − 2 3)

D None of these

Answer: D

Explanation:
3
Area of a equilateral triangle is 4 *a 2

2
1+ Downloaded from cracku.in
 2
5 1+ 5
Area of a regular pentagon is 4 * *a 2
2
5 1+ 5
4∗
5∗ 3
Therefore ratio of shaded area to unshaded area = 4 .
2
1+ 5

i.e. 3

therefore our answer is Option 'D'.

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Question 114

A cylindrical overhead tank is filled by two pumps - P1 and P2. P1 can fill the tank in 8 hours while P2 can fill the tank in 12 hours.
There is a pipe P3 which can empty the tank in 8 hours. Both the pumps are opened simultaneously. The supervisor of the tank,
before going out on a work, sets a timer to open P3 when the tank is half filled so that tank is exactly filled up by the time he is back.
Due to technical fault P3 opens when tank is one third filled. If the supervisor comes back as per the plan what percent of the tank is
still empty?

A 25% tank

B 12% tank

C 10% tank

D None of the above

Answer: C

Explanation:
P1 can fill the tank in 8 hours while P2 can fill the tank in 12 hours therefore when Both the pumps are opened simultaneously they can
1 1 5 24
fill 8 + 12 = 24 this much of tank in an hour.Therefore Time required by P1 and P2 to fill full tank is Hence they can fill half the tank
12 1 1 1 1
in 5 = 2.4 hours. After all the 3 pipes are opened the tank will be filled at the rate of 8 + 12 - 8 = 12 therefore for filling the remaining
tank we will need 6 more hours. If supervisor was planning to come exactly when the tank is fully filled then he must come after 8.4
hours
24 8
Time required by P1 and P2 to fill 1/3rd of the tank is 5∗3 = 5 = 1.6 hours therefore supervisor will come after = 8.4 - 1.6 = 6.8 hours
6.8
In 6.8 hours all the three pipe will fill 12 = 0.56 of the capacity of tank

therefore remaining tank to be filled when the supervisor comes = 1- 0.56 - 0.33 ≈ 0.1 i.e. 10%

Therefore option 'C' is our answer

Question 115

A ping pong ball is dropped from a 45 metres high multi-storey building. The ball bounces back three fifth of the distance each time
before coming to rest. The total distance traversed by the ball is:

A 150 m

B 180 m

C 175 m

D None of the above

Answer: B

Explanation:
3
When the ball is dropped from 45m height it will cover a distance of 45m while going down after rebound it'll cover a distance of 45 ∗ 5

3 3 3
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 3 3 3
while going up and a distance of 45 ∗ 5 while going down again. after 2nd rebound it'll cover a distance of 45 ∗ 5 ∗ 5 while going up
3 3
and a distance of 45 ∗ 5 ∗ 5 while going down again and so on
3 3 3 3 3 3
i.e. total distance traveled by the ball is 45 + 45 ∗ 5 + 45 ∗ 5 + 45 ∗ 5 ∗ 5 + 45 ∗ 5 ∗ 5 +...........
3 3 3 3 3 3
this form 2 infinite GPs as 45 + 45 ∗ 5 + 45 ∗ 5 ∗ 5 +....... and 45 ∗ 5 + 45 ∗ 5 ∗ 5 +....
3 453 225
For 1st GP a=45 and r= 5 therefore sum of this infinite GP is 1− 5 = 2
3
45∗ 5
3 3 3 135
For 2nd GP a=45* 5 and r= 5 therefore sum of this infinite GP is 1− 5 = 2

225 135
Therefore our answer = 2 + 2 = 180 m i.e. option 'B'

Question 116

A petrol tank at a filling station has a capacity of 400 litres. The attendant sells 40 litres of petrol from the tank to one customer and
then replenishes it with kerosene oil. This process is repeated with six customers. What quantity of pure petrol will the seventh
customer get when he purchases 40 litres of petrol?

A 20.50 litres

B 21.25 litres

C 24.75 litres

D 22.40 litres

Answer: B

Explanation:
From 2nd customer for each customer the purity of oil becomes 0.9 of it's previous value i.e. 2nd customer will get only 40*0.9=36 liters
of pure petrol 3rd customer will get 36*0.9= 32.4 liters of pure petrol and so on. Therefore the 7th customer will get 40 ∗ (0.9)6 = 21.25
liters of pure petrol

Therefore our answer is option 'B'.

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Question 117

A doctor has decided to prescribe two new drugs D1and D2 to 200 heart patients such that 50 get drug D1, 50 get drug D2 and 100 get
both. The 200 patients are chosen so that each had 80% chance of having a heart attack if given neither of the drugs. Drug D1
reduces the probability of a heart attack by 35 %, while drug D2 reduces the probability by 20%. The two drugs when taken together,
work independently. If a patient, selected randomly from the chosen 200 patients, has a heart attack then the probability that the
selected patient was given both the drug is:

A 0.42

B 0.49

C 0.56

D 0.40

Answer: A

Explanation:
Given that probability of getting a heart attack before any drug = 0.80

Drug D1 reduces the probability of a heart attack by 35 %. Therefore, the probability of a patient getting heart attack after he has taken
D1 = (1-0.35)*0.80 = 0.52

Drug D2 reduces the probability of a heart attack by 20 %. Therefore, the probability of a patient getting heart attack after he has taken

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D2 = (1-0.20)*0.80 = 0.64

It is given that both D1 and D2 work independently. Therefore, the probability of a patient getting heart attack after he has taken both D1
and D2 = (1-0.35)*(1-0.20)*0.80 = 0.416

A total of 100 patients have taken both the drugs whereas only 50-50 patients took drug D1 and D2.
0.416
Hence, the probability that the selected patient was given both the drug is = 0.416 + 0.5 ∗ 0.52 + 0.5 ∗ 0.64 = 0.417 ≈ 0.42

Therefore, we can say that option A is the correct answer.

Question 118

Bennett distribution company, a subsidiary of a major cosmetics manufacturer Bavlon, is forecasting the zonal sales for the next year.
Zone I with current yearly sales of Rs. 193.8 lakh is expected to achieve a sales growth of 7.25%; Zone II with current sales of Rs. 79.3
lakh is expected to grow by 8.2%; and Zone
III with sales of Rs. 57.5 lakh is expected to increase sales by 7.15%. What is the Bennett’s expected sales growth for the next year?

A 7.46%

B 7.53%

C 7.88%

D 7.41%

Answer: A

Explanation:
zone 1 will grow to become 193.8*1.0725= 207.85

zone 2 will grow to become 79.3*1.082=85.8

zone 3 will grow to become 57.5*1.0715=61.61

Total sales this year = 355.26

Total sales last year = 330.6

355
Growth = 330 = 1.0746 i.e. growth of 7.46%

Question 119

M/s. Devi Radiograms, a shop which sells electronic gadgets, marks its merchandise 35% above the purchase price. Until four months
ago, purchase price of one Philips DVD player was Rs. 3,000. During the last four months M/s. Devi Radiograms has received four
monthly consignments of Philips DVD player at the purchase price of Rs. 2,750, Rs. 2,500, Rs. 2,400, and Rs. 2250. The average rate
of decrease in the purchase price of DVD player during these four months is:

A 7.5%

B 8.20%

C 6.9%

D 7%

Answer: C

Explanation:
3000−2750
decrease in purchase price for first month was 3000 = 0.083
2750−2500
decrease in purchase price for second month was 2750 = 0.0909
2500−2400
decrease in purchase price for the third month was 2500 = 0.04
2400−2250
decrease in purchase price for the fourth month was 2400 = 0.0625

0.083+0.0909+0.04+0.0625
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 0.083+0.0909+0.04+0.0625
Average decrease = 4 = 0.069 i.e 6.9%

Therefore our answer is option'C'

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Question 120

The coefficient of x7 in the expansion of (1 − x2 + x3 )(1 + x)10 is:

A 75

B 78

C 85

D None of the above

Answer: B

Explanation:
We need to find the coefficient of x7 in the expansion (1 − x2 + x3 )(1 + x)10

Now, (1 + x)10 will have all the powers of x from 0 to 10. Multiplying these powers by 1, x2 and x3 will yield different results but we are
interested in finding only the coefficient of x7 . When we multiply x7 of (1 + x)10 by 1, x5 of (1 + x)10 by x2 and x4 of (1 + x)10 by
x3 we will get x7 . coefficient of x7 in (1 + x)10 is 10C7 = 120, coefficient of x5 in (1 + x)10 is 10C5 = 252, coefficient of x4 in (1 +
x)10 is 10C4 = 210 adding 120 and 210 and subtracting(since x2 has a negative sign) 252 we get coefficient of x7 as 78
Therefore our answer is option 'B'

Question 121

An arc AB of a circle subtends an angle x radian at centre O of the circle. If the area of the sector AOB is equal to the square of the
length of the arc AB, then x is:

A 0.5

B 1.0

C 0.75

D None of the above

Answer: A

Explanation:
We know length of an arc is = angle subtended in radians * radius of the circle

Therefore in our case Length of the arc = x*r

angle subtended in radians
Also, area of sector = 2 * radius2
x
Therefore in our case area of sector = 2 * r2

Also given that area of sector = length of an arc^2

x
Therefore x2 ∗ r2 = 2 * r2

Solving we get x= 0.5

Therefore our answer is Option "A"

Question 122

If there is threefold increase in all the sides of a cyclic quadrilateral, then the percentage increase in its area will be:

A 81%

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 9%
B

C 900%

D None of the above

Answer: D

Explanation:
Let a, b, c and d be the sides of the cyclic quadrilateral.
(a+b+c+d)
Thus, s = 2

Area = (s − a)(s − b)(s − c)(s − d)

Thus, after a threefold increase in the sides the sides will become 4a, 4b, 4c and 4d.
Thus new s = snew = (4a + 4b + 4c + 4d)/2 = 4s
Thus, Area new = (4s − 4a)(4s − 4b)(4s − 4c)(4s − 4d)
= 4 ∗ 4 ∗ 4 ∗ 4 ∗ (s − a)(s − b)(s − c)(s − d) = 16 ∗ Area
Thus, there is 1500% increase in the area.
Hence, option D is the correct answer.

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