IIFT Paper - 2009


122 Questions MCQ Test IIFT Mock Test Series | IIFT Paper - 2009


Description
This mock test of IIFT Paper - 2009 for CAT helps you for every CAT entrance exam. This contains 122 Multiple Choice Questions for CAT IIFT Paper - 2009 (mcq) to study with solutions a complete question bank. The solved questions answers in this IIFT Paper - 2009 quiz give you a good mix of easy questions and tough questions. CAT students definitely take this IIFT Paper - 2009 exercise for a better result in the exam. You can find other IIFT Paper - 2009 extra questions, long questions & short questions for CAT on EduRev as well by searching above.
QUESTION: 1

Answer the questions based on the following graphs


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

Solution:

The automobile production in 2004, 2005, 2006, 2007 and 2008 are 1775, 1700, 2175, 2325 and 2200 respectively.
The production shows decrease only in the year 2005 and 2008
The percentage decrease in 2005
= (1775-1700)/1775
= 4.22%
Percentage decrease in 2008
= (2325-2200)/2325
= 5.37%
Hence, 2008 exhibited highest percentage decrease.

QUESTION: 2

Answer the questions based on the following graphs


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

Solution:
QUESTION: 3

Answer the questions based on the following graphs


Q. 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?

Solution:
QUESTION: 4

Answer the questions based on the following graphs


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

Solution:
QUESTION: 5

Answer the questions based on the following graphs


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

Solution:
QUESTION: 6

Answer the questions based on the following graphs


Q. 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?

Solution:
QUESTION: 7

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.

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

Solution:
QUESTION: 8

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.

Q.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:

Solution:
QUESTION: 9

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.

Q. 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?

Solution:
QUESTION: 10

Answer the questions based on the following Table

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

Solution:
QUESTION: 11

Answer the questions based on the following Table

Q. Top 3 crops by yield in the year 2006 are:

Solution:
QUESTION: 12

Answer the questions based on the following Table

Q. Bottom 3 crops by yield in the year 2008 are:

Solution:
QUESTION: 13

Answer the questions based on the following Table

Q. 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:

Solution:
QUESTION: 14

Answer the questions based on the following Table

Q. 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:

Solution:
QUESTION: 15

Study the following carefully and answer the questions.

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

Solution:
QUESTION: 16

Study the following carefully and answer the questions.

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

Solution:
QUESTION: 17

Study the following carefully and answer the questions.

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

Solution:
QUESTION: 18

Study the following carefully and answer the questions.

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

Solution:
QUESTION: 19

Study the following carefully and answer the questions.

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

Solution:
QUESTION: 20

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 xed 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.

Q. Who lives in Red house?

Solution:
QUESTION: 21

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 xed 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.

Q. Which house is occupied by person earning highest salary?

Solution:
QUESTION: 22

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 xed 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.

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

Solution:
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?

Solution:
QUESTION: 24

Mr. Raju took the members of his family for a picnic. His father’s mother and mother’s father including their two children 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 along with Mr. Raju and how many were left behind (assuming all members of the third generation are married)?

Solution:
QUESTION: 25

ABCDE play a game of cards. ‘A’ tells ‘B’ that if ‘B’ gives him ve cards ‘A’ will have as many cards as ‘E’ has. However if A gives ve 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?

Solution:
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 lled up by Painting Instructor. On which day(s) of a week the dance and painting sessions are simultaneously held?

Solution:
QUESTION: 27

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 xation in September, 2008.

The revised pay is applicable from 1st September, 2008.

Q. 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?

Solution:
QUESTION: 28

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 xation in September, 2008.

The revised pay is applicable from 1st September, 2008.

Q. 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 xed 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

Solution:
QUESTION: 29

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 xation in September, 2008.

The revised pay is applicable from 1st September, 2008.

Q. 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:

Solution:
QUESTION: 30

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 xation in September, 2008.

The revised pay is applicable from 1st September, 2008.

Q. 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?

Solution:
QUESTION: 31

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

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

Solution:
QUESTION: 32

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

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

Solution:
QUESTION: 33

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

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

Solution:
QUESTION: 34

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

Q. Who are the four people selected by the Prime Minister?

Solution:
QUESTION: 35

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

Solution:
QUESTION: 36

Select the correct author - book match.

Solution:
QUESTION: 37

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

Solution:
QUESTION: 38

Which is the correct Stock Index - Country Match?

Solution:
QUESTION: 39

Which is the correct Legal Act and Jurisdiction Match?

Solution:
QUESTION: 40

Match the President, Country and Currency.

Solution:
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.

Solution:
QUESTION: 42

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

Solution:
QUESTION: 43

CDS which has been in news recently stands for?

Solution:
QUESTION: 44

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

Solution:
QUESTION: 45

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

Solution:
QUESTION: 46

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

Solution:
QUESTION: 47

Negative ination is also called:

Solution:
QUESTION: 48

The co-founders of Google are:

Solution:
QUESTION: 49

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

Solution:
QUESTION: 50

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

Solution:
QUESTION: 51

India signed the Kyoto Protocol in the year:

Solution:
QUESTION: 52

Match Column A with Column B.

Solution:
QUESTION: 53

Match the women CEOs with the company.

Solution:
QUESTION: 54

Match the company and the place where it originates from

Solution:
QUESTION: 55

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

PASSAGE - I

The most important task is revitalizing the institution of independent directors. The independent directors of a company should be faithful duciaries 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 dened 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 xed 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 rm. 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 nancial transactions of any entity to provide assurance to shareholder and other stakeholders that the nancial statements are free of material misstatement. Auditors are qualied professionals appointed by the shareholders to report on the reliability of nancial statements prepared by the management. Financial markets look to the auditor’s report for an independent opinion on the nancial and risk situation of a company. We have to separate such auditing form other services. For a truly independent opinion, the auditing rm should not provide services that are perceived to be materially in conict 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 ve 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 oce was associated with the auditing rm. 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 nancial accounting and reporting process. Hence, each member of the audit committee must be ‘nancially literate’, further, at least one member of the audit committee, preferably the chairman, should be a nancial expert-a person who has an understanding of nancial 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 signicant inuence. These include; parent- subsidiary relationships; entities under common control; individuals who, through ownership, have signicant inuence over the enterprise and close members of their families; and dey management personnel.

Accounting standards provide a framework for preparation and presentation of nancial statements and assist auditors in forming an opinion on the nancial 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 ve 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 nancial 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 certications by the CEO and CFO should be subject to signicant criminal penalties (nes 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.

Q. 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 conict with the views of company management. This has hindered the company’s decision-making process
IV. Stringent standards for independent directors have been lacking

Solution:
QUESTION: 56

PASSAGE - I

The most important task is revitalizing the institution of independent directors. The independent directors of a company should be faithful duciaries 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 dened 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 xed 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 rm. 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 nancial transactions of any entity to provide assurance to shareholder and other stakeholders that the nancial statements are free of material misstatement. Auditors are qualied professionals appointed by the shareholders to report on the reliability of nancial statements prepared by the management. Financial markets look to the auditor’s report for an independent opinion on the nancial and risk situation of a company. We have to separate such auditing form other services. For a truly independent opinion, the auditing rm should not provide services that are perceived to be materially in conict 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 ve 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 oce was associated with the auditing rm. 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 nancial accounting and reporting process. Hence, each member of the audit committee must be ‘nancially literate’, further, at least one member of the audit committee, preferably the chairman, should be a nancial expert-a person who has an understanding of nancial 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 signicant inuence. These include; parent- subsidiary relationships; entities under common control; individuals who, through ownership, have signicant inuence over the enterprise and close members of their families; and dey management personnel.

Accounting standards provide a framework for preparation and presentation of nancial statements and assist auditors in forming an opinion on the nancial 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 ve 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 nancial 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 certications by the CEO and CFO should be subject to signicant criminal penalties (nes 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.

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

Solution:
QUESTION: 57

PASSAGE - I

The most important task is revitalizing the institution of independent directors. The independent directors of a company should be faithful duciaries 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 dened 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 xed 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 rm. 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 nancial transactions of any entity to provide assurance to shareholder and other stakeholders that the nancial statements are free of material misstatement. Auditors are qualied professionals appointed by the shareholders to report on the reliability of nancial statements prepared by the management. Financial markets look to the auditor’s report for an independent opinion on the nancial and risk situation of a company. We have to separate such auditing form other services. For a truly independent opinion, the auditing rm should not provide services that are perceived to be materially in conict 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 ve 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 oce was associated with the auditing rm. 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 nancial accounting and reporting process. Hence, each member of the audit committee must be ‘nancially literate’, further, at least one member of the audit committee, preferably the chairman, should be a nancial expert-a person who has an understanding of nancial 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 signicant inuence. These include; parent- subsidiary relationships; entities under common control; individuals who, through ownership, have signicant inuence over the enterprise and close members of their families; and dey management personnel.

Accounting standards provide a framework for preparation and presentation of nancial statements and assist auditors in forming an opinion on the nancial 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 ve 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 nancial 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 certications by the CEO and CFO should be subject to signicant criminal penalties (nes 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.

Q. To improve the quality and reliability of the information reported in the nancial 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 certied by key company ocials
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

Solution:
QUESTION: 58

PASSAGE - I

The most important task is revitalizing the institution of independent directors. The independent directors of a company should be faithful duciaries 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 dened 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 xed 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 rm. 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 nancial transactions of any entity to provide assurance to shareholder and other stakeholders that the nancial statements are free of material misstatement. Auditors are qualied professionals appointed by the shareholders to report on the reliability of nancial statements prepared by the management. Financial markets look to the auditor’s report for an independent opinion on the nancial and risk situation of a company. We have to separate such auditing form other services. For a truly independent opinion, the auditing rm should not provide services that are perceived to be materially in conict 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 ve 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 oce was associated with the auditing rm. 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 nancial accounting and reporting process. Hence, each member of the audit committee must be ‘nancially literate’, further, at least one member of the audit committee, preferably the chairman, should be a nancial expert-a person who has an understanding of nancial 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 signicant inuence. These include; parent- subsidiary relationships; entities under common control; individuals who, through ownership, have signicant inuence over the enterprise and close members of their families; and dey management personnel.

Accounting standards provide a framework for preparation and presentation of nancial statements and assist auditors in forming an opinion on the nancial 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 ve 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 nancial 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 certications by the CEO and CFO should be subject to signicant criminal penalties (nes 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.

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

Solution:
QUESTION: 59

PASSAGE - I

The most important task is revitalizing the institution of independent directors. The independent directors of a company should be faithful duciaries 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 dened 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 xed 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 rm. 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 nancial transactions of any entity to provide assurance to shareholder and other stakeholders that the nancial statements are free of material misstatement. Auditors are qualied professionals appointed by the shareholders to report on the reliability of nancial statements prepared by the management. Financial markets look to the auditor’s report for an independent opinion on the nancial and risk situation of a company. We have to separate such auditing form other services. For a truly independent opinion, the auditing rm should not provide services that are perceived to be materially in conict 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 ve 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 oce was associated with the auditing rm. 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 nancial accounting and reporting process. Hence, each member of the audit committee must be ‘nancially literate’, further, at least one member of the audit committee, preferably the chairman, should be a nancial expert-a person who has an understanding of nancial 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 signicant inuence. These include; parent- subsidiary relationships; entities under common control; individuals who, through ownership, have signicant inuence over the enterprise and close members of their families; and dey management personnel.

Accounting standards provide a framework for preparation and presentation of nancial statements and assist auditors in forming an opinion on the nancial 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 ve 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 nancial 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 certications by the CEO and CFO should be subject to signicant criminal penalties (nes 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.

Q. The author of the passage does not advocate:

Solution:
QUESTION: 60

I suggest that the essential character of the Trade Cycle and, especially, the regularity of time-sequence and of duration which justies us in calling it a cycle, is mainly due to the way in which the marginal eciency of capital uctuates. The Trade Cycle is best regarded, I think, as being occasioned by a cyclical change in the marginal eciency of capital, though complicated and often aggravated by associated changes in the other signicant 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 rst 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 uctuation in investment not offset by a corresponding change in the propensity to consume will, of course, result in a uctuation in employment. Since, therefore, the volume of investment is subject to highly complex inuences, it is highly improbable that all uctuations either in investment itself or in the marginal eciency of capital will be of a cyclical character.

We have seen above that the marginal eciency 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 inuence 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 eciency of capital. The later stages of the boom are characterized by optimistic expectations as to the future yield of capital goods suciently 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 inuence 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 eciency 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 eciency 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 eciency 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 eciency of capital. It is this, indeed, which renders the slump so intractable.

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

Solution:
QUESTION: 61

I suggest that the essential character of the Trade Cycle and, especially, the regularity of time-sequence and of duration which justies us in calling it a cycle, is mainly due to the way in which the marginal eciency of capital uctuates. The Trade Cycle is best regarded, I think, as being occasioned by a cyclical change in the marginal eciency of capital, though complicated and often aggravated by associated changes in the other signicant 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 rst 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 uctuation in investment not offset by a corresponding change in the propensity to consume will, of course, result in a uctuation in employment. Since, therefore, the volume of investment is subject to highly complex inuences, it is highly improbable that all uctuations either in investment itself or in the marginal eciency of capital will be of a cyclical character.

We have seen above that the marginal eciency 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 inuence 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 eciency of capital. The later stages of the boom are characterized by optimistic expectations as to the future yield of capital goods suciently 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 inuence 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 eciency 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 eciency 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 eciency 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 eciency of capital. It is this, indeed, which renders the slump so intractable.

Q. Marginal eciency of the capital does not depend on which of following factors?

Solution:
QUESTION: 62

I suggest that the essential character of the Trade Cycle and, especially, the regularity of time-sequence and of duration which justies us in calling it a cycle, is mainly due to the way in which the marginal eciency of capital uctuates. The Trade Cycle is best regarded, I think, as being occasioned by a cyclical change in the marginal eciency of capital, though complicated and often aggravated by associated changes in the other signicant 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 rst 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 uctuation in investment not offset by a corresponding change in the propensity to consume will, of course, result in a uctuation in employment. Since, therefore, the volume of investment is subject to highly complex inuences, it is highly improbable that all uctuations either in investment itself or in the marginal eciency of capital will be of a cyclical character.

We have seen above that the marginal eciency 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 inuence 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 eciency of capital. The later stages of the boom are characterized by optimistic expectations as to the future yield of capital goods suciently 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 inuence 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 eciency 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 eciency 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 eciency 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 eciency of capital. It is this, indeed, which renders the slump so intractable.

Q. Which of the following explains the phenomenon of crisis?

I. A sudden collapse in the marginal eciency 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

Solution:
QUESTION: 63

The broad scientic 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 eciency and renewable energy, once said to me: "We built a really inecient environment with the greatest eciency ever known to man."

Beginning in the second half of the twentieth century, a scientic 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 oat 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 landll 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 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 scientic 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 fteenth 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 factorour 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 scientic 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.

Q. 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.

Solution:
QUESTION: 64

The broad scientic 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 eciency and renewable energy, once said to me: "We built a really inecient environment with the greatest eciency ever known to man."

Beginning in the second half of the twentieth century, a scientic 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 oat up and stay in the atmosphere, along with bags of CO2 from power plants burning coal, oil, and gas, and bags of CO2released 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 landll 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 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 scientic 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 fteenth 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 factorour 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 scientic 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.

Q. Which of the following statements is incorrect?

Solution:
QUESTION: 65

The broad scientic 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 eciency and renewable energy, once said to me: "We built a really inecient environment with the greatest eciency ever known to man."

Beginning in the second half of the twentieth century, a scientic 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 oat up and stay in the atmosphere, along with bags of CO2 from power plants burning coal, oil, and gas, and bags of CO2released 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 landll 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 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 scientic 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 fteenth 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 factorour 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 scientic 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.

Q. 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:

Solution:
QUESTION: 66

The broad scientic 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 eciency and renewable energy, once said to me: "We built a really inecient environment with the greatest eciency ever known to man."

Beginning in the second half of the twentieth century, a scientic 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 oat up and stay in the atmosphere, along with bags of CO2 from power plants burning coal, oil, and gas, and bags of CO2released 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 landll 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 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 scientic 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 fteenth 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 factorour 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 scientic 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.

Q. Which of the following according to the passage are the features of “fuels from heaven”?

(I) Replenishability
(II) Storability
(III) Cost-effectiveness
(IV) Harmlessness

Solution:
QUESTION: 67

"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 rst 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 rened 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, at 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 rst 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 eld 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 reneries to be cleansed and whitened."

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

"Practically none. Large rening 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 rened and is ready for sale. Here, too, machinery can more easily be bought and the business handled with less diculty."

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

Solution:
QUESTION: 68

"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 rst 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 rened 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, at 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 rst 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 eld 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 reneries to be cleansed and whitened."

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

"Practically none. Large rening 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 rened and is ready for sale. Here, too, machinery can more easily be bought and the business handled with less diculty."

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

Solution:
QUESTION: 69

"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 rst 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 rened 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, at 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 rst 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 eld 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 reneries to be cleansed and whitened."

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

"Practically none. Large rening 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 rened and is ready for sale. Here, too, machinery can more easily be bought and the business handled with less diculty."

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

Solution:
QUESTION: 70

Direction (Q. 70-74) : Each of the questions presents a sentence, part of which is underlined. Beneath the sentence you will nd 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.

Q. When I rst 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.

Solution:
QUESTION: 71

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

Solution:
QUESTION: 72

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

Solution:
QUESTION: 73

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.

Solution:
QUESTION: 74

From what landscapes or owerbeds 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.

Solution:
QUESTION: 75

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

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

Solution:
QUESTION: 76

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

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

Solution:
QUESTION: 77

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

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

Solution:
QUESTION: 78

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

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

Solution:
QUESTION: 79

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

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

Solution:
QUESTION: 80

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

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

Solution:
QUESTION: 81

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

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

Solution:
QUESTION: 82

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

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

Solution:
QUESTION: 83

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

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

Solution:
QUESTION: 84

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

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

Solution:
QUESTION: 85

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

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

Solution:
QUESTION: 86

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

Q. 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.

Solution:
QUESTION: 87

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

Q. 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.

Solution:
QUESTION: 88

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

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

Solution:
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.

Q. 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.

Solution:
QUESTION: 90

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.

Q. 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.

Solution:
QUESTION: 91

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.

Q. 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 nancial 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.

Solution:
QUESTION: 92

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.

Q. I. The dangers of conicting 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.

Solution:
QUESTION: 93

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.

Q. 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.

Solution:
QUESTION: 94

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.

Q. I. He somehow knew he would nd what he was looking for. So, with missionary zeal, he started to climb.
II. So instead, for perhaps the rst in his life he shed the shackles of reason and placed his trust in his intuition.
III. At rst 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 rst rays of the Indian sun danced along the colorful horizon, Julian set out his trek to the lost land of Savana.

Solution:
QUESTION: 95

Fortuner, the latest SUV by Toyota Motors, consumes diesel at the rate of  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 nd the approximate optimal speed (in km per hour) of Fortuner that will minimize the total cost of the round trip of 800 kms.

Solution:

SUV  consumes diesel at the rate of    liters per km 
Cost of 1 liter diesel is Rs. 35
Total distance to be covered is 800 kms
Therefore total cost of diesel consumption by SUV is 
Per hour Chargers of Driver is Rs. 125 and total time is 800/x 
Therefore total cost of driver is 100000/x 

We need total cost to be minimum so differentiating total cost w.r.t x and equating to 0 we get

x = 49 approximately
Therefore option 'A' is the answer

QUESTION: 96

Two motorists Anil and Sunil are practicing with two different sports cars: Ferrari and Maclarun, 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 compete 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 6th round and 9th round of Sunil (6th and 9th round is excluded)? Assume that the speed of Sunil remains steady throughout each round and changes only after the completion of that round.

Solution:

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

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

Therefore the number of times they meet between 6th round and 9th round of Sunil (6th and 9th round is excluded) = time required by Sunil to complete round 7 and 8 - time required by Anil to complete his round 7 and 8
= 256 + 512 - 1 - 1
= 382
Therefore answer is option 'C' 

QUESTION: 97

The sum of the series is: 

Solution:

  = 0.166..+0.0166..+0.00476..+..... which is always <0.2
Option A = - 1 = 7.34 - 1 = 6.34 therefore this cannot be the Answer

We know that the value of  1 and therefore value of 

therefore this cannot be the Answer

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

Solution:



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:

Solution:
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:

Solution:
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 gure having all its sides equal was generated. The area of this eight sided figure is:

Solution:
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 nds that there is a decit of Rs.2000 between his earnings and expenses in the first month. This decit, because of inationary pressure, will keep on increasing by Rs.500 every month. Rashid has a saving of Rs.60000 which will be used to ll this decit. After his savings get exhausted, Rashid would start borrowing from his friends. How soon will he start borrowing?

Solution:

firrst month he will have deciency of 2000, second month he will have deciency of 2500, Third month he will have deciency 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

This condition rst 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 :

Solution:

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

We need to nd 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    30 and r = 4 

therefore number of solutions 

Therefore our answer is Option 'B'

QUESTION: 104

A card is drawn at random from a well shued 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

Solution:

For X:-

Probability that the card drawn is a black card = 26/52

Probability that the card drawn is a king = 4/52

Probability that the card drawn is a black king = 2/52

Therefore probability The card drawn is black or a king.  

For Y:-

Probability that the card drawn is a club card = 13/52

Probability that the card drawn is a heart card = 13/52

Probability that the card drawn is a jack = 4/52

Probability that the card drawn is a jack of club or a jack of heart = 2/52

Therefore probability The card drawn is a club or a heart or a jack  

For Z:-

Probability that the card drawn is a diamond card = 13/52

Probability that the card drawn is an ace card = 4/52

Probability that the card drawn is a queen card = 4/52

Probability that the card drawn is a diamond card of ace or queen = 2/52

Therefore the probability The card drawn is an ace or a diamond or a queen. = 

Therefore, 

Therefore option C is our answer

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

Solution:

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 nite ,   square 2 and circle 2 is nite and so on sum of all these areas for a higher value of n will become innite

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.)

Solution:

Let x be the probability of investigation
Alpha's chances of getting a contract:-

1. if Gamma is able to import the technology and there is no investigation by the Government = 0.8*0.67*(1-x)
2. If there is investigation and Gamma Ltd is unable to import the technology in time = 0.72*0.2*x
3. If both events occur = 0.8*0.58*x
4. if none events occur = 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 our 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

Solution:

Amount of work done by A in one week = 1/6

Amount of work done by V in one week = 1/9

Amount of work done by Y in one week = 1/12

Therefore Amount of work done by A, V and Y in one week 

They work together for 2 weeks therefore work done in these 2 weeks is = 26/36

Amount of work remaining is 

Amount of work done by V and Y in one week 

If total number of weeks required to complete the work is n then only V and Y work together for (n-3) weeks

Therefore work done in these (n-3) weeks is 

Remaining   is completed by Y in one week

Therefore 

Solving we get n = 4 

Therefore The job would be completed in 4 weeks  

Therefore our answer is option 'A'

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?

Solution:
QUESTION: 109

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°.

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

Solution:

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


QUESTION: 110

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°.

Q. 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:

Solution:

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

AP = 50 km

Ratio of speed of warship to submarine = 2 : 1



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

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 rst 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:

Solution:

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'

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, by what distance will Sukriti win a 5 km mini marathon:

Solution:

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

Saloni covers the 1 km in 6 minutes and 4 seconds therefore her speed is   per minute

Therefore Distance Covered by Saloni in 29.16 mins is 

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

therefore our answer is option 'B'

QUESTION: 113

Find the ratio of shaded area to unshaded area

Solution:

Area of a equilateral triangle is 

Area of a regular pentagon is 

Therefore ratio of shaded area to unshaded area 

therefore our answer is Option 'D'.

QUESTION: 114

A cylindrical overhead tank is lled by two pumps - P1 and P2. P1 can ll the tank in 8 hours while P2 can ll 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 lled so that tank is exactly lled up by the time he is back. Due to technical fault P3 opens when tank is one third lled. If the supervisor comes back as per the plan what percent of the tank is still empty?

Solution:

P1 can ll the tank in 8 hours while P2 can ll the tank in 12 hours therefore when Both the pumps are opened simultaneously they can fill   this much of tank in an hour.Therefore Time required by P1 and P2 to ll full tank is 24  Hence they can ll half the tank in 12/5 = 2.4 4 hours. After all the 3 pipes are opened the tank will be lled at the rate of   therefore for lling the remaining tank we will need 6 more hours. If supervisor was planning to come exactly when the tank is fully lled then he must come after 8.4 hours

Time required by P1 and P2 to ll 1/3rd of the tank is   hours therefore supervisor will come after = 8.4 - 1.6 = 6.8 hours   In 6.8 hours all the three pipe will fill  of the capacity of tank

therefore remaining tank to be lled when the supervisor comes   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 fth of the distance each time before coming to rest. The total distance traversed by the ball is:

Solution:

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   while going up and a distance of  while going down again. after 2nd rebound it'll cover a distance of   while going up and a distance of   while going down again and so on 
i.e. total distance traveled by the ball is
this form 2 innite GPs as 
  therefore sum of this innite 
 therefore sum of this innite 

Therefore our answe 

QUESTION: 116

A petrol tank at a lling 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?

Solution:

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'.

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:

Solution:
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?

Solution:

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
Growth = 355/330 = 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:

Solution:

decrease in purchase price for rst month was 
decrease in purchase price for second month was 
decrease in purchase price for the third month was 
decrease in purchase price for the fourth month was 
Average decrease 
Therefore our answer is option'C'

QUESTION: 120

The coecient of x7 in the expansion of 

Solution:

x7 in the expansion of  

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 nding only the coecient of x7. When we multiply   and  we will get  x7. . coecient o = 120, coecient of   coecient of    adding 120 and 210 and subtracting(since x2 has a negative sign) 252 we get coecient 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:

Solution:

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

Also, area of sector 

Therefore in our case area of sector

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

Therefore 

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:

Solution:

Related tests