CAT Exam  >  CAT Test  >  Mock Test Series for XAT  >  XAT Mock Test - 8 (New Pattern) - CAT MCQ

XAT Mock Test - 8 (New Pattern) - CAT MCQ


Test Description

30 Questions MCQ Test Mock Test Series for XAT - XAT Mock Test - 8 (New Pattern)

XAT Mock Test - 8 (New Pattern) for CAT 2026 is part of Mock Test Series for XAT preparation. The XAT Mock Test - 8 (New Pattern) questions and answers have been prepared according to the CAT exam syllabus.The XAT Mock Test - 8 (New Pattern) MCQs are made for CAT 2026 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for XAT Mock Test - 8 (New Pattern) below.
Solutions of XAT Mock Test - 8 (New Pattern) questions in English are available as part of our Mock Test Series for XAT for CAT & XAT Mock Test - 8 (New Pattern) solutions in Hindi for Mock Test Series for XAT course. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free. Attempt XAT Mock Test - 8 (New Pattern) | 95 questions in 180 minutes | Mock test for CAT preparation | Free important questions MCQ to study Mock Test Series for XAT for CAT Exam | Download free PDF with solutions
XAT Mock Test - 8 (New Pattern) - Question 1

Direction: Read the passage and answer the questions that follow

As Xenophanes recognized as long ago as the sixth century before Christ, whether or not God made man in His own image, it is certain that man makes gods in his. The gods of Greek mythology first appear in the writings of Homer and Hesiod, and, from the character and actions of these picturesque and, for the most part, friendly beings, we get some idea of the men who made them and brought them to Greece.

But ritual is more fundamental than mythology, and the study of Greek ritual during recent years has shown that, beneath the belief or skepticism with which the Olympians were regarded, lay an older magic, with traditional rites for the promotion of fertility by the celebration of the annual cycle of life and death, and the propitiation of unfriendly ghosts, gods or demons. Some such survivals were doubtless widespread, and, prolonged into classical times, probably made the substance of Eleusinian and Orphic mysteries. Against this dark and dangerous background arose Olympic mythology on the one hand and early philosophy and science on the other.

In classical times the need of a creed higher than the Olympian was felt, and Aeschylus, Sophocles and Plato finally evolved from the pleasant but crude polytheism the idea of a single, supreme and righteous Zeus. But the decay of Olympus led to a revival of old and the invasion of new magic cults among the people, while some philosophers were looking to a vision of the uniformity of nature under divine and universal law.

The main idea of the passage is that

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 1

Most main idea questions are rather easy. This one is not—mainly, because the passage itself is not an easy read. Recall that to find the main idea of a passage, we check the last sentence of the first paragraph; if it’s not there, we check the closing of the passage. Reviewing the last sentence of the first paragraph, we see that it hardly presents a statement, let alone the main idea. Turning to the closing line of the passage, however, we find the key to this question. The passage describes a struggle for ascendancy amongst four opposing philosophies: (magic and traditional rites) vs. (Olympic mythology) vs. (monotheism [Zeus]) vs. (early philosophy and science). The closing lines of the passage summarize this and add that Olympic mythology lost out to monotheism (Zeus), while magical cults enjoyed a revival and the germ of universal law was planted. Thus the answer is (B).

XAT Mock Test - 8 (New Pattern) - Question 2

Direction: Read the passage and answer the questions that follow

As Xenophanes recognized as long ago as the sixth century before Christ, whether or not God made man in His own image, it is certain that man makes gods in his. The gods of Greek mythology first appear in the writings of Homer and Hesiod, and, from the character and actions of these picturesque and, for the most part, friendly beings, we get some idea of the men who made them and brought them to Greece.

But ritual is more fundamental than mythology, and the study of Greek ritual during recent years has shown that, beneath the belief or skepticism with which the Olympians were regarded, lay an older magic, with traditional rites for the promotion of fertility by the celebration of the annual cycle of life and death, and the propitiation of unfriendly ghosts, gods or demons. Some such survivals were doubtless widespread, and, prolonged into classical times, probably made the substance of Eleusinian and Orphic mysteries. Against this dark and dangerous background arose Olympic mythology on the one hand and early philosophy and science on the other.

In classical times the need of a creed higher than the Olympian was felt, and Aeschylus, Sophocles and Plato finally evolved from the pleasant but crude polytheism the idea of a single, supreme and righteous Zeus. But the decay of Olympus led to a revival of old and the invasion of new magic cults among the people, while some philosophers were looking to a vision of the uniformity of nature under divine and universal law.

All the following are mentioned in the passage EXCEPT

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 2

The problem is best solved by elimination

Choice (A) is mentioned in the passage: "In classical times the need of a creed higher than the Olympian was felt..."

Choice (B) is mentioned in the passage: "The gods of Greek mythology first appear in the writings of Homer and Hesiod, and, from the character and actions of these picturesque and, for the most part, friendly beings..."

Choice (C) is mentioned in the passage: "...whether or not God made man in His own image, it is certain that man makes gods in his."

Choice (E) is mentioned in the passage: "But the decay of Olympus led to a revival of old and the invasion of new magic cults..."

Hence, by the process of elimination, the answer is (D).

XAT Mock Test - 8 (New Pattern) - Question 3

Direction: Read the passage and answer the questions that follow

As Xenophanes recognized as long ago as the sixth century before Christ, whether or not God made man in His own image, it is certain that man makes gods in his. The gods of Greek mythology first appear in the writings of Homer and Hesiod, and, from the character and actions of these picturesque and, for the most part, friendly beings, we get some idea of the men who made them and brought them to Greece.

But ritual is more fundamental than mythology, and the study of Greek ritual during recent years has shown that, beneath the belief or skepticism with which the Olympians were regarded, lay an older magic, with traditional rites for the promotion of fertility by the celebration of the annual cycle of life and death, and the propitiation of unfriendly ghosts, gods or demons. Some such survivals were doubtless widespread, and, prolonged into classical times, probably made the substance of Eleusinian and Orphic mysteries. Against this dark and dangerous background arose Olympic mythology on the one hand and early philosophy and science on the other.

In classical times the need of a creed higher than the Olympian was felt, and Aeschylus, Sophocles and Plato finally evolved from the pleasant but crude polytheism the idea of a single, supreme and righteous Zeus. But the decay of Olympus led to a revival of old and the invasion of new magic cults among the people, while some philosophers were looking to a vision of the uniformity of nature under divine and universal law.

The passage implies which of the following

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 3

"...the study of Greek ritual during recent years has shown that, beneath the belief or skepticism with which the Olympians were regarded, lay an older magic, with traditional rites for the promotion of fertility by the celebration of the annual cycle of life and death.... Some such survivals were doubtless widespread, and, prolonged into classical times, probably made the substance of Eleusinian and Orphic mysteries."

XAT Mock Test - 8 (New Pattern) - Question 4

Direction: Read the passage and answer the questions that follow.

Most students arrive at [college] using “discrete, concrete, and absolute categories to understand people, knowledge, and values.” These students live with a dualistic view, seeing “the world in polar terms of we-right-good vs. other-wrong-bad.” These students cannot acknowledge the existence of more than one point of view toward any issue. There is one “right” way. And because these absolutes are assumed by or imposed on the individual from external authority, they cannot be personally substantiated or authenticated by experience. These students are slaves to the generalizations of their authorities. An eye for an eye! Capital punishment is apt justice for murder. The Bible says so.

Most students break through the dualistic stage to another equally frustrating stage—multiplicity. Within this stage, students see a variety of ways to deal with any given topic or problem. However, while these students accept multiple points of view, they are unable to evaluate or justify them. To have an opinion is everyone’s right. While students in the dualistic stage are unable to produce evidence to support what they consider to be self-evident absolutes, students in the multiplistic stage are unable to connect instances into coherent generalizations. Every assertion, every point, is valid. In their democracy they are directionless. Capital punishment? What sense is there in answering one murder with another?

The third stage of development finds students living in a world of relativism. Knowledge is relative: right and wrong depend on the context. No longer recognizing the validity of each individual idea or action, relativists examine everything to find its place in an overall framework. While the multiplist views the world as unconnected, almost random, the relativist seeks always to place phenomena into coherent larger patterns. Students in this stage view the world analytically. They appreciate authority for its expertise, using it to defend their own generalizations. In addition, they accept or reject ostensible authority after systematically evaluating its validity. In this stage, however, students resist decision making. Suffering the ambivalence of finding several consistent and acceptable alternatives, they are almost overwhelmed by diversity and need means for managing it. Capital punishment is appropriate justice—in some instances.

In the final stage students manage diversity through individual commitment. Students do not deny relativism. Rather they assert an identity by forming commitments and assuming responsibility for them. They gather personal experience into a coherent framework, abstract principles to guide their actions, and use these principles to discipline and govern their thoughts and actions. The individual has chosen to join a particular community and agrees to live by its tenets. The accused has had the benefit of due process to guard his civil rights, a jury of peers has found him guilty, and the state has the right to end his life. This is a principle my community and I endorse

Students who are “dualistic” thinkers may not be able to support their beliefs convincingly because

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 4

This is another extension question. Dualistic thinkers probably cannot give cogent arguments for their beliefs since they have adopted them unquestioningly from authority figures; dualistic thinkers do not know (have never thought of) the reasons for which their beliefs are right or wrong. Hence the answer is (B).

XAT Mock Test - 8 (New Pattern) - Question 5

Direction: Read the passage and answer the questions that follow.

Most students arrive at [college] using “discrete, concrete, and absolute categories to understand people, knowledge, and values.” These students live with a dualistic view, seeing “the world in polar terms of we-right-good vs. other-wrong-bad.” These students cannot acknowledge the existence of more than one point of view toward any issue. There is one “right” way. And because these absolutes are assumed by or imposed on the individual from external authority, they cannot be personally substantiated or authenticated by experience. These students are slaves to the generalizations of their authorities. An eye for an eye! Capital punishment is apt justice for murder. The Bible says so.

Most students break through the dualistic stage to another equally frustrating stage—multiplicity. Within this stage, students see a variety of ways to deal with any given topic or problem. However, while these students accept multiple points of view, they are unable to evaluate or justify them. To have an opinion is everyone’s right. While students in the dualistic stage are unable to produce evidence to support what they consider to be self-evident absolutes, students in the multiplistic stage are unable to connect instances into coherent generalizations. Every assertion, every point, is valid. In their democracy they are directionless. Capital punishment? What sense is there in answering one murder with another?

The third stage of development finds students living in a world of relativism. Knowledge is relative: right and wrong depend on the context. No longer recognizing the validity of each individual idea or action, relativists examine everything to find its place in an overall framework. While the multiplist views the world as unconnected, almost random, the relativist seeks always to place phenomena into coherent larger patterns. Students in this stage view the world analytically. They appreciate authority for its expertise, using it to defend their own generalizations. In addition, they accept or reject ostensible authority after systematically evaluating its validity. In this stage, however, students resist decision making. Suffering the ambivalence of finding several consistent and acceptable alternatives, they are almost overwhelmed by diversity and need means for managing it. Capital punishment is appropriate justice—in some instances.

In the final stage students manage diversity through individual commitment. Students do not deny relativism. Rather they assert an identity by forming commitments and assuming responsibility for them. They gather personal experience into a coherent framework, abstract principles to guide their actions, and use these principles to discipline and govern their thoughts and actions. The individual has chosen to join a particular community and agrees to live by its tenets. The accused has had the benefit of due process to guard his civil rights, a jury of peers has found him guilty, and the state has the right to end his life. This is a principle my community and I endorse

In paragraph two, the author states that in their “democracy” students in the multiplicity stage are directionless. The writer describes multiplicity students as being in a “democracy” because

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 5

This is an extension question. Multiplicity students view all opinions as equally valid. They have yet to learn how to rank opinions (truths)—all votes (thoughts) count equally. The answer is (B).

Note, (C) is offered to humor Republicans. The test-makers sometimes run out of tempting wrong choices. Don’t dwell on such humorous nonsense.

XAT Mock Test - 8 (New Pattern) - Question 6

Direction: Read the passage and answer the questions that follow.

Most students arrive at [college] using “discrete, concrete, and absolute categories to understand people, knowledge, and values.” These students live with a dualistic view, seeing “the world in polar terms of we-right-good vs. other-wrong-bad.” These students cannot acknowledge the existence of more than one point of view toward any issue. There is one “right” way. And because these absolutes are assumed by or imposed on the individual from external authority, they cannot be personally substantiated or authenticated by experience. These students are slaves to the generalizations of their authorities. An eye for an eye! Capital punishment is apt justice for murder. The Bible says so.

Most students break through the dualistic stage to another equally frustrating stage—multiplicity. Within this stage, students see a variety of ways to deal with any given topic or problem. However, while these students accept multiple points of view, they are unable to evaluate or justify them. To have an opinion is everyone’s right. While students in the dualistic stage are unable to produce evidence to support what they consider to be self-evident absolutes, students in the multiplistic stage are unable to connect instances into coherent generalizations. Every assertion, every point, is valid. In their democracy they are directionless. Capital punishment? What sense is there in answering one murder with another?

The third stage of development finds students living in a world of relativism. Knowledge is relative: right and wrong depend on the context. No longer recognizing the validity of each individual idea or action, relativists examine everything to find its place in an overall framework. While the multiplist views the world as unconnected, almost random, the relativist seeks always to place phenomena into coherent larger patterns. Students in this stage view the world analytically. They appreciate authority for its expertise, using it to defend their own generalizations. In addition, they accept or reject ostensible authority after systematically evaluating its validity. In this stage, however, students resist decision making. Suffering the ambivalence of finding several consistent and acceptable alternatives, they are almost overwhelmed by diversity and need means for managing it. Capital punishment is appropriate justice—in some instances.

In the final stage students manage diversity through individual commitment. Students do not deny relativism. Rather they assert an identity by forming commitments and assuming responsibility for them. They gather personal experience into a coherent framework, abstract principles to guide their actions, and use these principles to discipline and govern their thoughts and actions. The individual has chosen to join a particular community and agrees to live by its tenets. The accused has had the benefit of due process to guard his civil rights, a jury of peers has found him guilty, and the state has the right to end his life. This is a principle my community and I endorse

Which one of the following kinds of thinking is NOT described in the passage?

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 6

This is another description question. (A): No, these are the Multiplists. (B): No, Dualists think this way. (C): No, this describes Relativists. Don’t confuse (A) and (C).): No, Committed thinkers fit this description rather nicely. Hence, by process of elimination, we have learned the answer is (D).

XAT Mock Test - 8 (New Pattern) - Question 7

Direction: Read the passage and answer the questions that follow.

Most students arrive at [college] using “discrete, concrete, and absolute categories to understand people, knowledge, and values.” These students live with a dualistic view, seeing “the world in polar terms of we-right-good vs. other-wrong-bad.” These students cannot acknowledge the existence of more than one point of view toward any issue. There is one “right” way. And because these absolutes are assumed by or imposed on the individual from external authority, they cannot be personally substantiated or authenticated by experience. These students are slaves to the generalizations of their authorities. An eye for an eye! Capital punishment is apt justice for murder. The Bible says so.

Most students break through the dualistic stage to another equally frustrating stage—multiplicity. Within this stage, students see a variety of ways to deal with any given topic or problem. However, while these students accept multiple points of view, they are unable to evaluate or justify them. To have an opinion is everyone’s right. While students in the dualistic stage are unable to produce evidence to support what they consider to be self-evident absolutes, students in the multiplistic stage are unable to connect instances into coherent generalizations. Every assertion, every point, is valid. In their democracy they are directionless. Capital punishment? What sense is there in answering one murder with another?

The third stage of development finds students living in a world of relativism. Knowledge is relative: right and wrong depend on the context. No longer recognizing the validity of each individual idea or action, relativists examine everything to find its place in an overall framework. While the multiplist views the world as unconnected, almost random, the relativist seeks always to place phenomena into coherent larger patterns. Students in this stage view the world analytically. They appreciate authority for its expertise, using it to defend their own generalizations. In addition, they accept or reject ostensible authority after systematically evaluating its validity. In this stage, however, students resist decision making. Suffering the ambivalence of finding several consistent and acceptable alternatives, they are almost overwhelmed by diversity and need means for managing it. Capital punishment is appropriate justice—in some instances.

In the final stage students manage diversity through individual commitment. Students do not deny relativism. Rather they assert an identity by forming commitments and assuming responsibility for them. They gather personal experience into a coherent framework, abstract principles to guide their actions, and use these principles to discipline and govern their thoughts and actions. The individual has chosen to join a particular community and agrees to live by its tenets. The accused has had the benefit of due process to guard his civil rights, a jury of peers has found him guilty, and the state has the right to end his life. This is a principle my community and I endorse

Which one of the following best describes the organization of the passage?

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 7

This is a writing technique question. In each paragraph the author shows how a stage of thought evolved from a previous stage—except the dualistic stage, which starts the analysis. Further, the thought process in each stage is illustrated by how it views capital punishment. Hence the answer is (d).

Be careful not to choose (D). Although dualistic thinking certainly is simplistic and provincial, and committed thinking seems to be considered and cosmopolitan, neither of these judgments is stated nor implied by the passage.

XAT Mock Test - 8 (New Pattern) - Question 8

Direction: Read the passage and answer the questions that follow.

A growing taste for shark steaks and shark-fin soup has for the first time in 400 million years put the scourge of the sea at the wrong end of the food chain. Commercial landings of this toothsome fish have doubled every year since 1986, and shark populations are plunging. It is hardly a case of good riddance. Sharks do for gentler fish what lions do for the wildebeest: they check populations by feeding on the weak. Also, sharks apparently do not get cancer and may therefore harbor clues to the nature of that disease.

Finally, there is the issue of motherhood. Sharks are viviparous. That is, they bear their young alive and swimming (not sealed in eggs) after gestation periods lasting from nine months to two years. Shark mothers generally give birth to litters of from eight to twelve pups and bear only one litter every other year.

This is why sharks have one of the lowest fecundity rates in the ocean. The female cod, for example, spawns annually and lays a few million eggs at a time. If three quarters of the cod were to be fished this year, they could be back in full force in a few years. But if humans took that big of a bite out of the sharks, the population would not recover for 15 years.

So, late this summer, if all goes according to plan, the shark will join the bald eagle and the buffalo on the list of managed species. The federal government will cap the U.S. commercial catch at 5,800 metric tons, about half of the 1989 level, and limit sportsmen to two sharks per boat. Another provision discourages finning, the harvesting of shark fins alone, by limiting the weight of fins to 7 percent of that of all the carcasses.

Finning got under the skin of environmentalists, and the resulting anger helped to mobilize support for the new regulations. Finning itself is a fairly recent innovation. Shark fins contain noodle-like cartilaginous tissues that Chinese chefs have traditionally used to thicken and flavor soup. Over the past few years rising demand in Hong Kong has made the fins as valuable as the rest of the fish. Long strands are prized, so unusually large fins can be worth considerably more to the fisherman than the average price of about $10 a pound.

But can U.S. quotas save shark species that wander the whole Atlantic? The blue shark, for example, migrates into the waters of something like 23 countries. John G. Casey, a biologist with the National Marine Fisheries Service Research Center in Narragansett, R.I., admits that international co-ordination will eventually be necessary. But he supports U.S. quotas as a first step in mobilizing other nations. Meanwhile the commercial fishermen are not waiting for the new rules to take effect. “There’s a pre-quota rush on sharks,” Casey says, “and it’s going on as we speak.”

According to the passage, shark populations are at greater risk than cod populations because

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 8

This is a description question. Paragraph 3 contains the information needed to answer it. There it is stated that the cod population can replenish itself in a few years, but the shark population would take 15 years. Hence the answer is (B).

Don’t make the mistake of choosing (C). Although it is certainly supported by the passage, it does not state how this relates to cod—they too may be decreasing in number. (C) uses the true-but-irrelevant ploy.

XAT Mock Test - 8 (New Pattern) - Question 9

Direction: Read the passage and answer the questions that follow.

A growing taste for shark steaks and shark-fin soup has for the first time in 400 million years put the scourge of the sea at the wrong end of the food chain. Commercial landings of this toothsome fish have doubled every year since 1986, and shark populations are plunging. It is hardly a case of good riddance. Sharks do for gentler fish what lions do for the wildebeest: they check populations by feeding on the weak. Also, sharks apparently do not get cancer and may therefore harbor clues to the nature of that disease.

Finally, there is the issue of motherhood. Sharks are viviparous. That is, they bear their young alive and swimming (not sealed in eggs) after gestation periods lasting from nine months to two years. Shark mothers generally give birth to litters of from eight to twelve pups and bear only one litter every other year.

This is why sharks have one of the lowest fecundity rates in the ocean. The female cod, for example, spawns annually and lays a few million eggs at a time. If three quarters of the cod were to be fished this year, they could be back in full force in a few years. But if humans took that big of a bite out of the sharks, the population would not recover for 15 years.

So, late this summer, if all goes according to plan, the shark will join the bald eagle and the buffalo on the list of managed species. The federal government will cap the U.S. commercial catch at 5,800 metric tons, about half of the 1989 level, and limit sportsmen to two sharks per boat. Another provision discourages finning, the harvesting of shark fins alone, by limiting the weight of fins to 7 percent of that of all the carcasses.

Finning got under the skin of environmentalists, and the resulting anger helped to mobilize support for the new regulations. Finning itself is a fairly recent innovation. Shark fins contain noodle-like cartilaginous tissues that Chinese chefs have traditionally used to thicken and flavor soup. Over the past few years rising demand in Hong Kong has made the fins as valuable as the rest of the fish. Long strands are prized, so unusually large fins can be worth considerably more to the fisherman than the average price of about $10 a pound.

But can U.S. quotas save shark species that wander the whole Atlantic? The blue shark, for example, migrates into the waters of something like 23 countries. John G. Casey, a biologist with the National Marine Fisheries Service Research Center in Narragansett, R.I., admits that international co-ordination will eventually be necessary. But he supports U.S. quotas as a first step in mobilizing other nations. Meanwhile the commercial fishermen are not waiting for the new rules to take effect. “There’s a pre-quota rush on sharks,” Casey says, “and it’s going on as we speak.”

If the species Homo logicus was determined to be viviparous and to have extremely low fecundity rates on land, we might expect that

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 9

This is an application question; we are asked to apply what we have learned in the passage to a hypothetical situation. A review of the passage shows that only (B) and (d) have any real merit. But sharks have survived for 400 million years with an extremely low fecundity rate. This eliminates (B). Hence the answer is (d).

XAT Mock Test - 8 (New Pattern) - Question 10

Direction: Read the passage and answer the questions that follow.

A growing taste for shark steaks and shark-fin soup has for the first time in 400 million years put the scourge of the sea at the wrong end of the food chain. Commercial landings of this toothsome fish have doubled every year since 1986, and shark populations are plunging. It is hardly a case of good riddance. Sharks do for gentler fish what lions do for the wildebeest: they check populations by feeding on the weak. Also, sharks apparently do not get cancer and may therefore harbor clues to the nature of that disease.

Finally, there is the issue of motherhood. Sharks are viviparous. That is, they bear their young alive and swimming (not sealed in eggs) after gestation periods lasting from nine months to two years. Shark mothers generally give birth to litters of from eight to twelve pups and bear only one litter every other year.

This is why sharks have one of the lowest fecundity rates in the ocean. The female cod, for example, spawns annually and lays a few million eggs at a time. If three quarters of the cod were to be fished this year, they could be back in full force in a few years. But if humans took that big of a bite out of the sharks, the population would not recover for 15 years.

So, late this summer, if all goes according to plan, the shark will join the bald eagle and the buffalo on the list of managed species. The federal government will cap the U.S. commercial catch at 5,800 metric tons, about half of the 1989 level, and limit sportsmen to two sharks per boat. Another provision discourages finning, the harvesting of shark fins alone, by limiting the weight of fins to 7 percent of that of all the carcasses.

Finning got under the skin of environmentalists, and the resulting anger helped to mobilize support for the new regulations. Finning itself is a fairly recent innovation. Shark fins contain noodle-like cartilaginous tissues that Chinese chefs have traditionally used to thicken and flavor soup. Over the past few years rising demand in Hong Kong has made the fins as valuable as the rest of the fish. Long strands are prized, so unusually large fins can be worth considerably more to the fisherman than the average price of about $10 a pound.

But can U.S. quotas save shark species that wander the whole Atlantic? The blue shark, for example, migrates into the waters of something like 23 countries. John G. Casey, a biologist with the National Marine Fisheries Service Research Center in Narragansett, R.I., admits that international co-ordination will eventually be necessary. But he supports U.S. quotas as a first step in mobilizing other nations. Meanwhile the commercial fishermen are not waiting for the new rules to take effect. “There’s a pre-quota rush on sharks,” Casey says, “and it’s going on as we speak.”

Which one of the following best describes the author’s attitude toward the efforts to protect shark populations?

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 10

This is a rather easy tone question. The passage has a matter-of-fact or journalistic tone to it. So the answer is (E).

XAT Mock Test - 8 (New Pattern) - Question 11

Direction: Read the passage and answer the questions that follow.

A growing taste for shark steaks and shark-fin soup has for the first time in 400 million years put the scourge of the sea at the wrong end of the food chain. Commercial landings of this toothsome fish have doubled every year since 1986, and shark populations are plunging. It is hardly a case of good riddance. Sharks do for gentler fish what lions do for the wildebeest: they check populations by feeding on the weak. Also, sharks apparently do not get cancer and may therefore harbor clues to the nature of that disease.

Finally, there is the issue of motherhood. Sharks are viviparous. That is, they bear their young alive and swimming (not sealed in eggs) after gestation periods lasting from nine months to two years. Shark mothers generally give birth to litters of from eight to twelve pups and bear only one litter every other year.

This is why sharks have one of the lowest fecundity rates in the ocean. The female cod, for example, spawns annually and lays a few million eggs at a time. If three quarters of the cod were to be fished this year, they could be back in full force in a few years. But if humans took that big of a bite out of the sharks, the population would not recover for 15 years.

So, late this summer, if all goes according to plan, the shark will join the bald eagle and the buffalo on the list of managed species. The federal government will cap the U.S. commercial catch at 5,800 metric tons, about half of the 1989 level, and limit sportsmen to two sharks per boat. Another provision discourages finning, the harvesting of shark fins alone, by limiting the weight of fins to 7 percent of that of all the carcasses.

Finning got under the skin of environmentalists, and the resulting anger helped to mobilize support for the new regulations. Finning itself is a fairly recent innovation. Shark fins contain noodle-like cartilaginous tissues that Chinese chefs have traditionally used to thicken and flavor soup. Over the past few years rising demand in Hong Kong has made the fins as valuable as the rest of the fish. Long strands are prized, so unusually large fins can be worth considerably more to the fisherman than the average price of about $10 a pound.

But can U.S. quotas save shark species that wander the whole Atlantic? The blue shark, for example, migrates into the waters of something like 23 countries. John G. Casey, a biologist with the National Marine Fisheries Service Research Center in Narragansett, R.I., admits that international co-ordination will eventually be necessary. But he supports U.S. quotas as a first step in mobilizing other nations. Meanwhile the commercial fishermen are not waiting for the new rules to take effect. “There’s a pre-quota rush on sharks,” Casey says, “and it’s going on as we speak.”

An irony resulting from the announcement that sharks will be placed on the managed list is

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 11

By announcing the impending classification, the federal government ironically encourages fishermen to kill as many sharks as they can before the regulations go into effect—stimulating the opposite of what was intended, i.e., the saving of sharks. The answer is (D).

XAT Mock Test - 8 (New Pattern) - Question 12

Read the following sentences and choose the one the option that best arranges them in a logical order.

1. Accordingly, people who say of a universal statement that we know its truth from experience usually mean that the truth of this universal statement can somehow be reduced to the truth of singular ones, and that these singular ones are known by experience to be true; which amounts to saying that the universal statement is based on inductive inference.

2. The problem of induction may also be formulated as the question of the validity or the truth of universal statements which are based on experience, such as the hypotheses and theoretical systems of the empirical sciences.

3. Thus to ask whether there are natural laws known to be true appears to be only another way of asking whether inductive inferences are logically justified.

4. For many people believe that the truth of these universal statements is ‘known by experience’; yet it is clear that an account of an experience—of an observation or the result of an experiment—can in the first place be only a singular statement and not a universal one.

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 12

Sentences 2 and 4 have a cause and effect relationship. ‘For’ in sentence 4 has been used not as a preposition but as a conjunction and in the given context means ‘because’. That’s leaves us with options B and D. Statement 1 is a further extension of statement 4 and statement 3 is clearly a concluding statement. So the answer is option D.

XAT Mock Test - 8 (New Pattern) - Question 13

Read the following sentences and choose the one the option that best arranges them in a logical order.

1. Then, as the marsh winds made the fire glow and flare, I thought I heard the voice outside, of the man with the iron on his leg who had sworn me to secrecy, declaring that he couldn't and wouldn't starve until to-morrow, but must be fed now.

2. The guilty knowledge that I was going to rob Mrs. Joe—I never thought I was going to rob Joe, for I never thought of any of the housekeeping property as his—united to the necessity of always keeping one hand on my bread and butter as I sat, or when I was ordered about the kitchen on any small errand, almost drove me out of my mind.

3. Conscience is a dreadful thing when it accuses man or boy; but when, in the case of a boy, that secret burden co-operates with another secret burden down the leg of his trousers, it is (as I can testify) a great punishment.

4. If ever anybody's hair stood on end with terror, mine must have done so then. But, perhaps, nobody's ever did?

5. At other times, I thought, What if the young man who was with so much difficulty restrained from imbruing his hands in me should yield to a constitutional impatience, or should mistake the time, and should think himself accredited to my heart and liver to-night, instead of to-morrow!

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 13

The first pair that you establish in this question is the one between statements 3 and 2. Statement 3 mentions the conscience, and statement 2 mentions the guilt associated with it. The next pair of related statements is 1-5-4. Statement 1 explains what the boy is thinking, statement 5 and 4 take those forward. Now that we have the two pairs, all you need to see is where these two pairs fit without being torn apart. We find that only in option c.

XAT Mock Test - 8 (New Pattern) - Question 14

Direction: Read the following passage and answer the question.

Trade fairs are among the most memorable events that take place periodically with the purpose of promoting sales, launching new products, bringing together manufacturers of a particular line of products and educating the public. They are held at all levels-international, national, state and district. The most prominent among them are the India International Trade Fair, World Book Fair, Information Technology fair, Electronic Trade and Technology Fair, Textile Fair, Auto Expo, state-level book fairs, district level exhibitions etc. India Trade Promotion Organisation (ITPO), which was incorporated in 1992 by the merger of Trade Development Authority (TDA) with the Trade Fair Authority of India (TFAI), has been playing a commendable role in this respect.

It can be said without a doubt that sales promotion is the most important purpose of these fairs. Bringing together the largest possible number of manufacturers, suppliers, existing and potential buyers under the same roof helps to promote the products in an effective way. All these people come together on a single platform for a fixed period of time. This offers a unique opportunity to manufacturers and suppliers to display their best products and services and the buyers get a chance to see a wide range of products and services.

Conferences, seminars, live product demonstrations and presentations are regular features of these fairs and exhibitions. Besides these, colourful cultural programmes are also important features of such fairs. These fairs give a good opportunity to the artists to showcase their skills and talent at such specially organized programmes.

ITPO stands for:

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 14

From the line given in the passage: India Trade Promotion Organisation (ITPO), which was incorporated in 1992 by the merger of Trade Development Authority (TDA) with the Trade Fair Authority of India (TFAI), has been playing a commendable role in this respect.

So, ITPO stands for India Trade Promotion Organisation.

Hence, the correct option is (B).

XAT Mock Test - 8 (New Pattern) - Question 15

Direction: Read the following passage and answer the question.

Trade fairs are among the most memorable events that take place periodically with the purpose of promoting sales, launching new products, bringing together manufacturers of a particular line of products and educating the public. They are held at all levels-international, national, state and district. The most prominent among them are the India International Trade Fair, World Book Fair, Information Technology fair, Electronic Trade and Technology Fair, Textile Fair, Auto Expo, state-level book fairs, district level exhibitions etc. India Trade Promotion Organisation (ITPO), which was incorporated in 1992 by the merger of Trade Development Authority (TDA) with the Trade Fair Authority of India (TFAI), has been playing a commendable role in this respect.

It can be said without a doubt that sales promotion is the most important purpose of these fairs. Bringing together the largest possible number of manufacturers, suppliers, existing and potential buyers under the same roof helps to promote the products in an effective way. All these people come together on a single platform for a fixed period of time. This offers a unique opportunity to manufacturers and suppliers to display their best products and services and the buyers get a chance to see a wide range of products and services.

Conferences, seminars, live product demonstrations and presentations are regular features of these fairs and exhibitions. Besides these, colourful cultural programmes are also important features of such fairs. These fairs give a good opportunity to the artists to showcase their skills and talent at such specially organized programmes.

What are some of the regular features of such trade fairs?

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 15

From the line given in the passage: Conferences, seminars, live product demonstrations, and presentations are regular features of these fairs and exhibitions.

Hence, the correct option is (D).

XAT Mock Test - 8 (New Pattern) - Question 16

Direction: Read the following passage and answer the question.

Trade fairs are among the most memorable events that take place periodically with the purpose of promoting sales, launching new products, bringing together manufacturers of a particular line of products and educating the public. They are held at all levels-international, national, state and district. The most prominent among them are the India International Trade Fair, World Book Fair, Information Technology fair, Electronic Trade and Technology Fair, Textile Fair, Auto Expo, state-level book fairs, district level exhibitions etc. India Trade Promotion Organisation (ITPO), which was incorporated in 1992 by the merger of Trade Development Authority (TDA) with the Trade Fair Authority of India (TFAI), has been playing a commendable role in this respect.

It can be said without a doubt that sales promotion is the most important purpose of these fairs. Bringing together the largest possible number of manufacturers, suppliers, existing and potential buyers under the same roof helps to promote the products in an effective way. All these people come together on a single platform for a fixed period of time. This offers a unique opportunity to manufacturers and suppliers to display their best products and services and the buyers get a chance to see a wide range of products and services.

Conferences, seminars, live product demonstrations and presentations are regular features of these fairs and exhibitions. Besides these, colourful cultural programmes are also important features of such fairs. These fairs give a good opportunity to the artists to showcase their skills and talent at such specially organized programmes.

How is the trade fair an effective way of promoting products?

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 16

The second sentence of the second paragraph of the passage clearly states, "Bringing together the largest possible number of manufacturers, suppliers, existing and potential buyers under the same roof helps to promote the products in an effective way".

Hence, the correct option is (A).

XAT Mock Test - 8 (New Pattern) - Question 17

Direction: Read the poem carefully and answer the questions that follow.

If you can keep your head when all about you

Are losing theirs and blaming it on you,

If you can trust yourself when all men doubt you,

But make allowance for their doubting too;

If you can wait and not be tired by waiting,

Or being lied about, don't deal in lies,

Or being hated, don't give way to hating,

And yet don't look too good, nor talk too wise:

If you can dream - and not make dreams your master;

If you can think - and not make thoughts your aim;

If you can meet with Triumph and Disaster

And treat those two impostors just the same;

If you can bear to hear the truth you've spoken

Twisted by knaves to make a trap for fools,

Or watch the things you gave your life to, broken,

And stoop and build 'em up with worn-out tools:

If you can make one heap of all your winnings

And risk it on one turn of pitch-and-toss,

And lose, and start again at your beginnings

And never breathe a word about your loss;

If you can force your heart and nerve and sinew

To serve your turn long after they are gone,

And so hold on when there is nothing in you

Except the Will which says to them: 'Hold on!'

If you can talk with crowds and keep your virtue,

Or walk with Kings - nor lose the common touch,

If neither foes nor loving friends can hurt you,

If all men count with you, but none too much;

If you can fill the unforgiving minute

With sixty seconds' worth of distance run,

Yours is the Earth and everything that's in it,

And - which is more - you'll be a Man, my son!

Why is the poet addressing triumph and disaster as imposters?

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 17

(a)- if triumph and disaster show a man's true character, they cannot be considered or addressed as imposters; (c) and (d)- they are incorrect as per the poem; (b)- Since triumph and disaster are extremes situations and do not paint the real picture of our lives. Both are fleeting in nature as neither of these two lasts forever. That's why, they are addressed as imposters (pretenders); hence, (b) is the right answer.

XAT Mock Test - 8 (New Pattern) - Question 18

Direction: Read the poem carefully and answer the questions that follow.

If you can keep your head when all about you

Are losing theirs and blaming it on you,

If you can trust yourself when all men doubt you,

But make allowance for their doubting too;

If you can wait and not be tired by waiting,

Or being lied about, don't deal in lies,

Or being hated, don't give way to hating,

And yet don't look too good, nor talk too wise:

If you can dream - and not make dreams your master;

If you can think - and not make thoughts your aim;

If you can meet with Triumph and Disaster

And treat those two impostors just the same;

If you can bear to hear the truth you've spoken

Twisted by knaves to make a trap for fools,

Or watch the things you gave your life to, broken,

And stoop and build 'em up with worn-out tools:

If you can make one heap of all your winnings

And risk it on one turn of pitch-and-toss,

And lose, and start again at your beginnings

And never breathe a word about your loss;

If you can force your heart and nerve and sinew

To serve your turn long after they are gone,

And so hold on when there is nothing in you

Except the Will which says to them: 'Hold on!'

If you can talk with crowds and keep your virtue,

Or walk with Kings - nor lose the common touch,

If neither foes nor loving friends can hurt you,

If all men count with you, but none too much;

If you can fill the unforgiving minute

With sixty seconds' worth of distance run,

Yours is the Earth and everything that's in it,

And - which is more - you'll be a Man, my son!

What is the poet's attitude in the entire poem?

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 18

The entire poem revolves around the theme of being stoic, calm in any given situation be it adversity or in good times. Options (b) and (c) convey exactly this while (a) is mentioned only in the last stanza of the paragraph and is quite specific to a particular situation; hence, (E) is the right answer.

XAT Mock Test - 8 (New Pattern) - Question 19

Fill the blanks with most appropriate option.

Dismissing _____ bunch of appeals where _____ Development Authority had changed _____ civic amenity site in HRBR Layout from the purpose of ______ park to _____ bank and finally to ______petrol pump, _____ apex court ruled that even though a petrol pump is also a 'civic amenity,' as per DA rules, the use from one civic amenity to another is not possible unless _______ original development plan is changed

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 19

Indefinite article ‘a’ implies one and is used before consonants, therefore would be used for the first blank. Indefinite article ‘an’ is also used to imply ‘one’ and is used before vowels. In the given context, a park, a bank, a petrol pump, all of them would take indefinite article ‘a’ because ‘a’ here conveys a singular object or introduction to the subject.

Definite article 'the' is used before singular and plural nouns when the noun is specific or particular. 'The' signals that the noun is definite, that it refers to a government body in this context. So definite article 'the' will be used in the second, third and seventh blank.

XAT Mock Test - 8 (New Pattern) - Question 20

Over the past two decades, a wide gap in pay has arisen between medical professionals who practice in the public health arena as opposed to those who practice privately. As a result, many doctors, nurses and other health professionals employed by public and nonprofit agencies have left their public health jobs in favor of private clinics and hospitals. Public and nonprofit agencies will be able to entice these professionals to return to public health jobs if salaries are made commensurate with those paid in the private sector. The quality of medical care provided by public and nonprofit agencies will thus be improved.

Which one of the following is presumed in the position stated above?

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 20

Don’t ponder too long over this question. The answer is fairly simple. The question presumes that medical professionals who left their jobs in the public health sector for higher paying private jobs would return to the public health sector if salaries go up enough. (D) is the correct choice.

XAT Mock Test - 8 (New Pattern) - Question 21

An oligarchy is a government run by a small, conservative faction. Often, oligarchies consist of families such as the Royal family in Saudi Arabia. Like the Royal family in Saudi Arabia, no one person in an oligarchy has the power to make a particular investment. Therefore, risky investments are never made by oligarchies.

The conclusion of the argument is valid if which one of the following is assumed?

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 21

If risky investments are never made by oligarchies because no one person has the power to make a particular investment, then it must be the case that only individuals make risky investments. The answer is (d).

XAT Mock Test - 8 (New Pattern) - Question 22

Choose the most appropriate option after reading the following statements.

1. The national land acquisition bill provides for a fair and equitable distribution of gains made from any land, acquired from the purposes of state, such as exploration of natural resources, development of dams and roads etc.

2. The land mafia in the country rules the roost as far as development projects in the country go, and the stranglehold they possess ensures the proceeds of development projects are never passed on to those who have first right over these.

3. In terms of use of natural resources of a nation, the first right should always be of the citizens who derive their subsistence from the land and whose livelihood is purely depended upon the output provided by the land in concern.

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 22

In the given case, you need to establish the relationship these statements have with each other. If you look closely, you will see that statement 3 talks about a general policy that should be followed by the state and the general approach that it should take. What does statement 1 do? It identifies the provision in the law that can help implement the ideals put forward in statement 3. Hence, the correct answer is option 2. This rules out option 3 as well. Also, since the three statements are definitely related to each other, and talk of the same subject.

XAT Mock Test - 8 (New Pattern) - Question 23

Fill in the blanks with the correct pair of words/phrases.

The task of the vice-principal was simplified by __________the staff members for the annual scholastic research and drafting of the reports and results of the primary and higher secondary students. She was now able to focus her attention less on the _________ aspects of the curriculum and more on policy issues and inter-school meetings.

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 23

The vice - principle was able to focus less on the tasks of research and drafting results , hence these can be described as mundane, meaning common and not challenging. And it would make sense if she banked upon or relied on her staff members for these tasks rather than selecting them or reflecting on them. She also cannot per se 'create' them. The tasks are mundane but not unimportant, hence the use of word inconsequential wouldn't be appropriate.

XAT Mock Test - 8 (New Pattern) - Question 24

Replace the underlined portion of the given sentence with the option that makes the sentence grammatically and contextually correct.

The rise in negative attitudes toward foreigners indicate that the country is becoming less tolerant, and therefore that the opportunities are ripe for extremist groups to exploit the illegal immigration problem.

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 24

Choice (A) has two flaws. First, the subject of the sentence the rise is singular, but the verb indicate is plural. Second, the comma indicates that the sentence is made up of two independent clauses, but the relative pronoun that immediately following therefore forms a subordinate clause.

Choice (B) is the answer because it both corrects the verb’s number and removes the subordinating relative pronoun that.

Choice (C) corrects the number of the verb, but retains the subordinating relative pronoun that.

Choice (D) corrects the number of the verb and eliminates the subordinating relative pronoun that. However, the verb being is less descriptive than the verb becoming: “As negative attitudes toward foreigners increase, the country becomes correspondingly less tolerant.” Being does not capture this notion of change.

Hence, the correct option is (B).

XAT Mock Test - 8 (New Pattern) - Question 25

Replace the underlined portion of the given sentences with the option that makes the sentence grammatically and contextually correct

Using the Hubble telescope, previously unknown galaxies are now being charted.

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 25

Choice (A) is incorrect because the phrase using the Hubble telescope does not have a noun to modify.

Choice (B) is incorrect because the phrase using the Hubble telescope still does not have a noun to modify.

Choice (C) offers a noun, astronomers, but it is too far from the phrase using the Hubble telescope.

Choice (D) offers a noun, astronomers, and correctly places it immediately after the modifying phrase using the Hubble telescope.

XAT Mock Test - 8 (New Pattern) - Question 26

Fill in the blanks with the most appropriate option.

Failing to account for the millions of young people either attending university or in vocational training programs ______ the unemployment rate's credibility. And, while some young people use higher education to escape a rocky job market, their choice to build new skills should not negatively impact ____ of their country's economic health.

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 26

Surely, the failure in accounting has an impact on the rate's credibility, but the kind of impact it has is elucidated by the word undermine, hence we choose the option undermine over impact. Negate means to be in contradiction with. As is stated in the earlier part of the sentence, the unaccountability of students in the data is distorting the results of country's employment rates. Hence, the choice of people to build their skills by taking up higher education and becoming 'students' should not change the way people view the country's economic health. So the word 'perception. Evaluation is not being negatively affected; the wrong evaluation is having a negative effect on the data and subsequently the perceptions. We know nothing about progress and hence cannot say whether it is being negatively affected or not.

XAT Mock Test - 8 (New Pattern) - Question 27

You are the newly appointed financial controller in LMB Ltd., a large private engineering company. This is your first appointment in industry having undertaken your training at a large accountancy firm where most of your experience was gained in the audit of large NSE 500 clients. LMB Ltd. makes components which are used in the manufacture of various household products and it has a wide customer base from large household names through to small local private businesses.

One of your first tasks is to undertake a view of aged debtors. Whilst undertaking your review you find that a small number of customers have credit balances on their sales ledger accounts. The amounts relate to invoices which are now over 9 months old and which appear to have been paid twice. You find this odd and decide to raise the issue with your boss, Dushyant, the Financial Director, at your next meeting.

The following morning, Dushyant calls you into his office and asks you how you are settling into your position. You respond that, although you are still finding your feet, you have been making a major effort to get up to speed with the company's business and systems and controls. Dushyant appreciates your enthusiasm and is pleased that he has managed to recruit someone so enthusiastic.

Dushyant then asks whether anything has come to your attention so far. You advise him of what you have found in relation to the customers who appear to have paid twice. Dushyant laughs and tells you that it balances out in the end.

Furthermore, he produces copies of letters from a file which are addressed to the Financial Directors at the respective customers informing them of their company's overpayment. You return to your desk - rather bewildered by his comments. Customers have overpaid and he knows this to be the case, yet he has no intention of returning their money unless prompted by the customer.

You find it perplexing to think that the Financial Directors of the companies that have overpaid have not responded on being notified about the outstanding invoices.

In the light of the given situation, which of the following is the most sound judgment?

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 27

Negligence or lack of response cannot justify with holding a refund which the customer is entitled to. Therefore, options 1 and 2 can be eliminated. Option 4 is incorrect since it indicates a bias towards larger transactions. No matter how small the sum, LMB Ltd. must refund it. Option 3 alone holds as a sound judgment. Hence, the correct answer is option 3.

XAT Mock Test - 8 (New Pattern) - Question 28

You are the newly appointed financial controller in LMB Ltd., a large private engineering company. This is your first appointment in industry having undertaken your training at a large accountancy firm where most of your experience was gained in the audit of large NSE 500 clients. LMB Ltd. makes components which are used in the manufacture of various household products and it has a wide customer base from large household names through to small local private businesses.

One of your first tasks is to undertake a view of aged debtors. Whilst undertaking your review you find that a small number of customers have credit balances on their sales ledger accounts. The amounts relate to invoices which are now over 9 months old and which appear to have been paid twice. You find this odd and decide to raise the issue with your boss, Dushyant, the Financial Director, at your next meeting.

The following morning, Dushyant calls you into his office and asks you how you are settling into your position. You respond that, although you are still finding your feet, you have been making a major effort to get up to speed with the company's business and systems and controls. Dushyant appreciates your enthusiasm and is pleased that he has managed to recruit someone so enthusiastic.

Dushyant then asks whether anything has come to your attention so far. You advise him of what you have found in relation to the customers who appear to have paid twice. Dushyant laughs and tells you that it balances out in the end.

Furthermore, he produces copies of letters from a file which are addressed to the Financial Directors at the respective customers informing them of their company's overpayment. You return to your desk - rather bewildered by his comments. Customers have overpaid and he knows this to be the case, yet he has no intention of returning their money unless prompted by the customer.

You find it perplexing to think that the Financial Directors of the companies that have overpaid have not responded on being notified about the outstanding invoices.

A couple of months pass when, whilst undertaking another review, you notice that a customer, Moe Controls Ltd., has once again paid the amount due by them twice. You decide to discuss this with Dushyant with a view to issuing an immediate repayment or at the very least, a credit note, as the company is a regular customer. Dushyant advises you that he will deal with this by personally writing to the Financial Director at Moe Controls Ltd. - he advises you that at this stage there is no need to issue a credit note or make a repayment.

You are not at ease with his assurance, you decide to:

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 28

Option 1 would be in defiance of Dushyant's orders and would be a hasty decision. It would imply that you have no regard for Dushyant's advice.

Option 2 would not be correct since it is unethical to notissue a refund or a credit note after it is apparent that the customer has overpaid.

Option 3 might not be very effective and will not be taken to kindly by Dushyant. This could adversely affect your position in the company.

It is essential to clearly communicate your sentiments to Dushyant and gauge his response before taking any further steps.

Hence, the correct answer is option 5.

XAT Mock Test - 8 (New Pattern) - Question 29

You are the newly appointed financial controller in LMB Ltd., a large private engineering company. This is your first appointment in industry having undertaken your training at a large accountancy firm where most of your experience was gained in the audit of large NSE 500 clients. LMB Ltd. makes components which are used in the manufacture of various household products and it has a wide customer base from large household names through to small local private businesses.

One of your first tasks is to undertake a view of aged debtors. Whilst undertaking your review you find that a small number of customers have credit balances on their sales ledger accounts. The amounts relate to invoices which are now over 9 months old and which appear to have been paid twice. You find this odd and decide to raise the issue with your boss, Dushyant, the Financial Director, at your next meeting.

The following morning, Dushyant calls you into his office and asks you how you are settling into your position. You respond that, although you are still finding your feet, you have been making a major effort to get up to speed with the company's business and systems and controls. Dushyant appreciates your enthusiasm and is pleased that he has managed to recruit someone so enthusiastic.

Dushyant then asks whether anything has come to your attention so far. You advise him of what you have found in relation to the customers who appear to have paid twice. Dushyant laughs and tells you that it balances out in the end.

Furthermore, he produces copies of letters from a file which are addressed to the Financial Directors at the respective customers informing them of their company's overpayment. You return to your desk - rather bewildered by his comments. Customers have overpaid and he knows this to be the case, yet he has no intention of returning their money unless prompted by the customer.

You find it perplexing to think that the Financial Directors of the companies that have overpaid have not responded on being notified about the outstanding invoices.

A&M Ltd. was one of the customers that had paid twice. Despite being notified about the same, the company had not responded to the formal communication sent by LMB Ltd. Yet, the Financial Director of A&M Ltd is very distraught that LMB Ltd. did not issue a refund sooner, especially when the two companies continued their association. A&M Ltd. has now threatened to exit all contracts with LMB Ltd. Which of the following steps would you take to salvage the situation?

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 29

Option 1 can be eliminated since it is not required that LMB Ltd. should apologize since both parties are at fault. Option 2 can be ruled out too since it is not required that the company pay an interest to A&M Ltd. Options 3 are incorrect since they would not salvage the situation in any manner. Asking for an apology or refusing a refund will not pacify A&M Ltd. as they have already threatened to stop all business with the company. Option 4 alone holds since it not only pacifies A&M Ltd. by offering them a better deal, but it also ensures that they continue their association with LMB Ltd. Hence, the correct answer is option 4.

XAT Mock Test - 8 (New Pattern) - Question 30

A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.

The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.

The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.

The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.

Which of the following could be a probable reason for the Chairman to reprimand the CFO?

Detailed Solution for XAT Mock Test - 8 (New Pattern) - Question 30

Here, the decision by the CFO appears to be flawed because he made a blanket rule, which though useful in the short term, would not have yielded long term gains. Options 1 and 2 are misleading as the decision for restructuring the finances appears to be correct, but its implementation is being questioned. Options 3 are impractical. The CFO was given a mandate and it is his job to implement it, not the Chairman’s. Option 4 is the most plausible course of action to take to maintain healthy finances as well as good client relations. Hence, the correct answer is option 4.

View more questions
7 docs|30 tests
Information about XAT Mock Test - 8 (New Pattern) Page
In this test you can find the Exam questions for XAT Mock Test - 8 (New Pattern) solved & explained in the simplest way possible. Besides giving Questions and answers for XAT Mock Test - 8 (New Pattern), EduRev gives you an ample number of Online tests for practice
Download as PDF