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XAT Decision Making MCQ Quiz - 2 - CAT MCQ


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22 Questions MCQ Test XAT Mock Test Series 2025 - XAT Decision Making MCQ Quiz - 2

XAT Decision Making MCQ Quiz - 2 for CAT 2024 is part of XAT Mock Test Series 2025 preparation. The XAT Decision Making MCQ Quiz - 2 questions and answers have been prepared according to the CAT exam syllabus.The XAT Decision Making MCQ Quiz - 2 MCQs are made for CAT 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for XAT Decision Making MCQ Quiz - 2 below.
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XAT Decision Making MCQ Quiz - 2 - Question 1

Sri Lankan government is providing incentives for the foreign companies investing in the country. Malibaba wants to invest in only one country. Most of the board members are in favour of investing in India while some of them want to invest in Sri Lanka. Which of the following reasons will convince the other members to invest in India?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 1

Because of the larger market potential the cost of setting up the business per potential customer in India would be much lower than that in Sri Lanka. Hence, despite governments incentives in Sri Lanka, the company will still prefer to invest in India.

XAT Decision Making MCQ Quiz - 2 - Question 2

The company has finally decided to invest in India. However, the FDI restriction laws prevent the company from entering the Indian market in its current form. Which of the following would be the best option for the company in such a scenario?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 2

The easiest way to enter the Indian market would be to tie up with an already existing company. It would provide the infrastructure which is already there and also help overcome the investment restrictions which have been put in by the government.

XAT Decision Making MCQ Quiz - 2 - Question 3

Which of the following actions is the most helpful for Amit?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 3

If Amit presents the software as his own it may lead him into trouble later on when the truth comes out. So Option A can be eliminated.
Options D and E do not benefit Amit in any way. So they can be ruled out.
If Amit presents Balu’s work as the work of the entire team it would make Balu as the entire team will get the credit. So the best option for Amit is to present the software along with Balu so that it makes both of them look good.

XAT Decision Making MCQ Quiz - 2 - Question 4

Amit has now informed Balu that he will present Balu’s software as his own and in return will grant Balu a raise and promotion. What should Balu do now?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 4
  • Option A is unethical and must be ruled out.
  • Option B is not desirable as in this case Balu would be violating the organizational hierarchy.
  • Leaving the company at this stage is not advisable as it would create a financial burden on Balu. So Option C can also be ruled out.
  • Informing his colleagues about Amit’s proposal is also not advisable as it may lead to misunderstanding with his boss.
  • Thus the best thing for Balu to do is to tell Amit directly that he is not willing to share the credit.
XAT Decision Making MCQ Quiz - 2 - Question 5

Which of the following is the main reason for Amit’s proposal to Balu?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 5

It is given in the passage that Amit’s performance review is due and his team has not met the expectations set for this year. This is the main reason why Amit wanted to present Balu’s work as his own. Thus the answer is Option B.

XAT Decision Making MCQ Quiz - 2 - Question 6

What should the company do to avoid situations like this?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 6

In the given options, none of these measures will prove enough to avert/avoid situations like this. So the answer is Option E.

XAT Decision Making MCQ Quiz - 2 - Question 7

How should Ayush approach the situation?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 7
  • It is mentioned that a larger competing company was quite capable of beating Kide. It is also known that the current message is one of the reasons behind Kide’s success. Thus, changing or modifying the message entails the risk of losing the market to their rival. Thus, B and E are incorrect. C is also incorrect as there is no guarantee that the modified message is as successful as the current one.
  • The correct approach should be to analyse the situation better. It is given that they are receiving at least one complaint per week i.e. at least 52 in the year. But if the customers who are content with the commercial are much larger than this base, then changing the message is not the best idea as the message has been proven successful. Thus, between A and E, A is the better choice as it addresses the complaints unlike E.
XAT Decision Making MCQ Quiz - 2 - Question 8

If the objective of Ranjan is to (i) create a good image of himself as a politician and (ii) create a long lasting positive impact, the best decision he should take is:

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 8

The question demands that Mr. Ranjan has to portray good image of himself as well as create a long lasting positive impact. For this, option (B) is the best choice. Providing adequate security protection will assuage the apprehensions of the players. Moreover, this will earn him the popularity of the followers of the game.

XAT Decision Making MCQ Quiz - 2 - Question 9

Identify the best rationale that may force Ranjan as a politician to take decision in favour of IRC.

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 9

The best rationale behind Arjuna’s decision in favour of IRC would be option (B). If the World Cup is held in a country which has adopted the DTC guidelines and Racket Club does not comply with the DTC guidelines, then the team will not be allowed to participate in the World Cup.

XAT Decision Making MCQ Quiz - 2 - Question 10

Which of the following could have been a better response of Mr. Shiv to Ms. Teknikwali’s request to re-schedule the ERP implementation?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 10

Including all the BAG members in the decision making process would make them more responsible and involved in the project. Thus, option E is a good way of dealing with the problem of rescheduling the ERP implementation. Option A only looks at a probable deadline date but doesn’t deal with the core problem of how it will be met. Option B would not solve the problem since the problem is not about lack of professional advice but how other members can be made receptive to change in the plans. Option C is biased as it overlooks the older members. Option D is incorrect and not in line with the passage, it is nowhere mentioned that external consultants are slow.

XAT Decision Making MCQ Quiz - 2 - Question 11

Which of the following can be identified as the immediate cause for the problems in BAG?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 11

Unilateral decision making by Mr. Shiv is the cause for the problems faced by BAG. He did not take the other members into confidence while committing to the deadline. Hence, option E is correct. Option A is not the immediate cause of the problem. Option B is incorrect because we can’t comment on the competence of the consultant, moreover he wasn’t directly responsible for the problem. Options C and D are out of scope since it is not mentioned that there was any lack of information or infighting between members in the ERP project.

XAT Decision Making MCQ Quiz - 2 - Question 12

How should Mr. Shiv cope with the situation now? Choose the best option, considering Mr. Shiv's career would be at stake if the ERP project fails, and assuming that for carrying out the options, he has the necessary authority to do so.

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 12

Option A and B do not solve the problem in any way. Resigning or firing old members does not address the problem in any way. Option C is unfair since it sidelines the old members and their concern, neither does it guarantee that the same problem won’t be faced with the new members. Option E is too relaxed to work out in such a crisis like situation. It would not be intelligent to arrange for out-bound programs when deadlines need to be met. Option D is correct, it addresses the problem of extra work load by hiring extra resources along with developing specialized work-routines.

XAT Decision Making MCQ Quiz - 2 - Question 13

Ms Shabina, the principal of VPS, is aware that some of her teachers are unhappy. She wants to be seen as fair and just. Which option is the best one that she should exercise?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 13

Compensating the teachers who volunteer to work on weekends is a good solution to deal with unhappy teachers. It is fair on the part of teachers to get additional incentives for coming on a weekend. Option A doesn’t deal with the problem. Option C, appointing a committee of teachers, management and parents, is too impractical. Option D is biased as a committee of staunch supporters of the current practices would not consider the grievances of the teachers. Option E is incorrect because it does not show the principal as fair and just.

XAT Decision Making MCQ Quiz - 2 - Question 14

A group of unhappy teachers have come up with a list of action plans for the consideration of their colleagues. The action plans are listed below.

I. Exposing Mr. Ivan's intentions behind the inclusion of choral recitation.

II. Conduct an open house discussion to gauge the unhappiness and to identify possible solutions.

III. Introduce music and dance competitions in same format as elocution competition

IV. Demand compensation for their work on the day of VMEC.

Mr. Zacharia, one of the senior teachers and a well wisher of VPS, is asked to go through the action plans and make recommendations that benefits VPS the most. He would recommend:

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 14

Statements II and IV are good recommendations that deal with the problem of unhappy teachers. They not only help them understand the issues at hand but also soothe their (teachers’) discomfort. Statement I does not help calm the teachers in any way. Statement III is unrelated to the problem. Hence, option B with Statements II and IV is the correct choice.

XAT Decision Making MCQ Quiz - 2 - Question 15

Which of the following is the best decision to take?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 15

The only logical, ethical and profitable decision one should take in this situation is to maintain both the level of production and the quality of the product.
So the correct option is option D.

XAT Decision Making MCQ Quiz - 2 - Question 16

Though they decided to maintain the good quality of the product, after an increase in the production level of wooden products, the quality department has been receiving numerous complaints about the quality of the product. Mr Rohan, who was busy solving some important problems concerning shipping department felt uncomfortable with all these complaints regarding quality of the product.
If you were in Rohan’s position, what decision would you take?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 16

Options a, b, c are not proper solutions to solve the problem given in the question. And option E is harsh decision to make. Option D is the better decision to make, so that they could work on the quality of the product with the help of Gautham’s plan without any further consequences.

XAT Decision Making MCQ Quiz - 2 - Question 17

What should Abhshik do in the short term regarding the altercation between Ashok and Rajeev?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 17

Both Abhishek and Rajeev are important to the organization. Thus, just taking action against one of them is not the right decision. Thus, both option C can be eliminated.
Options A and D are decisions which would help in the long run but would be ineffective in the short run
B is an extreme step and should only be taken if efforts to settle their quarrel are not successful. Thus, option E is the best course of action in the given situation.

XAT Decision Making MCQ Quiz - 2 - Question 18

Abhishek decided to admonish Ashok and make him apologize to Rajeev. Ashok was initially not satisfied with Abhishek’s decision but after some time he let go of his emotions and decided to focus on the project at hand. Which of the following would be the reason that he Instructionsdecided to do so?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 18

From the question we can infer that Ashok even though was dissatisfied by the lead supervisors decision decided to focus on the job at hand. Thus, we can say that he values the objectives of the company higher than his own ego. Thus, B could be the most probable reason for his actions.

XAT Decision Making MCQ Quiz - 2 - Question 19

In this given situation what is the best course of action by Prajith?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 19
  • Providing false information will have legal consequences on the persons involved. So option B which talks about following Mr. Reddy’s directive is not right.
  • When there are possible better alternatives not doing anything is not the best course of action. Thus, C is also incorrect.
  • From the case let given it is clear that Mr. Srinivas is not willing to listen to any view of Prajith regarding the matter. Thus, option D is also not the best course of action
  • Among options A and E, E is more correct as the before reporting such an important matter which could have grave consequences on the reputation of the college it should be first discussed with the people in charge.
XAT Decision Making MCQ Quiz - 2 - Question 20

Manohar, the highest earning employee for the last three years, vehemently opposes the GM's proposal. Which of the following could be most likely reason for him to oppose the proposal?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 20

Manohar would oppose the proposal because now he would be judged on three parameters instead of one and he may not be that good on the new criteria. He would have to definitely work harder to maintain his ‘highest earning employee’ status. Thus, option E is correct. Options B and D are ambiguous and can’t be stated concretely. Option A is incorrect for the word ‘favorable position’. Being highest paid does not mean he has a favorable or unfavorable position. Option C is ambiguous too because we don’t know if the relative importance of the three parameters would not be specified later.

XAT Decision Making MCQ Quiz - 2 - Question 21

The top management of Saral Co. refused to implement the proposal of new GM from the beginning of next month. Which of the following could be the most justified reason for the management's refusal?

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 21

The main reason for delaying the implementation of the proposal for a month is that the management would need time to think it out and get consensus from concerned employees. This makes option E correct. Options A and B give trivial reasons that the management would choose to overlook. Option C is irrelevant as it questions the competence of the GM which is certainly incorrect. Option D states that GM would require time to implement the plan, which is incorrect. It is the management in its entirety that implements the plan. Thus, the delay has nothing to do with the GM. This rules out option D.

XAT Decision Making MCQ Quiz - 2 - Question 22

Unhappy customers will not only leave the company, but also spread negative publicity about the company. The best way, among the options below, to deal with customers is:

Detailed Solution for XAT Decision Making MCQ Quiz - 2 - Question 22

The best way to deal with unhappy customers is to suggest them to buy other models and offering to them discounts and gifts. This would not only make the customers happy but would also mean more business for the company. Option A is incorrect since suggesting the customers to wait will only aggravate the problem. Option C, D and E don’t deal with issue of making the customers happy.

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