MBA: Analysis of Business Situation (Sample Paper) PART - 1

Section - I

Directions for questions 1 – 20:

This section comprises two passages. After each passage questions consisting of items relating to the preceding passage are given. Evaluate each item separately in terms of the respective passage and choose your answer
 

PASSAGE – I (Questions 1 – 10)

The Shop-O-shelf Company's supermarkets are situated in Bangalore, Coimbatore and Vellore. The company is dynamic and aggressive having grown from 8 stores ten years ago to 26 today. Kanchipuram is a town 60 miles from Vellore. It has not shown the spectacular growth of other suburbs, but its population has increased from around 56,000 to 1, 30,000 in the past decade. With no other Shop-O-Self supermarket within 20 miles of the area, Shop-O-Self Company is considering opening a store in
Kanchipuram.

The Arguments against: some Shop-O-Self executives oppose the project as a poor risk. They point to the proposed site, which is in a shopping centre three miles from Kanchipuram business district. Two other food chains have failed on this site because they claim; most new residences are on the other side of the community. Moreover, the shopping centre owners demand a five year lease. Shop-O-Self would have to try to find another business to take over the lease should its own store fail before the end of that time. If a Shop-O-Self market must be opened in Kanchipuram, it would be far better, these executives argue, to build it in the heart of the community. But they point out, another supermarket is already there. The Arguments for: The Majority of the executives maintain that the site has great potential. A new east-west highway is being built which will pass Kanchipuram to the north and force the car commuters to Kanchipuram to pass by the shopping centre. A housing project of 3, 000 units is going to be constructed nearby. The average household is expected to consist of five people with over Rs. 30,000 of income to dispose of annually. They also argue that the centre of Kanchipuram is now congested with traffic and has extremely poor parking facilities, while there is excellent parking in the shopping centre. Investment in a new building in Kanchipuram, proper than a five year lease should the store fail. They are not too concerned about the other supermarket in Kanchipuram. There is enough business for both. Besides, the competitor's prices are higher than shop-o-self. They also discount past supermarket failures in the shopping certre. They claim these were caused more by poor management than by the shopping centre's being slightly off the beaten path.

The Decision: The board of directors listens to both sides and then votes to open a Shop-o-self store at the Kanchipuram shopping centre.

1. The residents at the projected residential development will shop in the Kanchipuram store
(1) If the item is a Major Objective in making the decision: that is, the outcome or result sought by the decision maker
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

2. Poor management causing past supermarket failures.
(1) If the item is a Major Objective in making the decision: that is, the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

3. New east-west highway.
(1) If the item is a Major Objective in making the decision: that is, the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

4. Expansion of dynamic company.
(1) If the item is a Major Objective in making the decision: that is , the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

5. Failure of two supermarkets due to poor site selection.
(1) If the item is a Major Objective in making the decision: that is , the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

6. Establishing a new store
(1) If the item is a Major Objective in making the decision: that is, the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

7. New housing development.
(1) If the item is a Major Objective in making the decision: that is , the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

8. Car commuters will shop at Kanchipuram supermarket.
(1) If the item is a Major Objective in making the decision: that is, the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

9. High disposable income of expected new residents.
(1) If the item is a Major Objective in making the decision: that is, the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

10. Kanchipuram's prices are lower than those of competitors.
(1) If the item is a Major Objective in making the decision: that is, the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

PASSAGE II (Questions 11 – 20)

In 1997 Mr. Deepak, a chemical engineer, began experimenting in his spare time with a new method for processing fresh orange juice. By 2000, he had perfected the process to such an extent that he was ready to begin production in a small way. His process enabled him to extract 18 percent more juice from oranges than
was typically extracted by a pressure juicer of the type currently used in cafes. His process also removed some of the bitterness, which got into the juice from the peelings when oranges were squeezed without peeling them.

Since many of the better quality restaurants preferred to serve fresh orange juice instead of canned or frozen juice, Mr. Deepak believed he could find a ready market for his product. Another appeal of his product would be that he could maintain more consistent juice flavor than haphazard restaurant juicing usually produced.

Mr. Deepak patented the process and then started production. Since his capital was limited, he began production in a small building, which previously had been a woodworking shop. With the help of his brother, Mr. Deepak marketed the juice through local restaurants. The juice was distributed in glass bottles, which
proved to be rather expensive because of high breakage. The new product was favourably accepted by the public and the business proved to e a success.

Mr. Deepak began to receive larger and more frequent orders from his customers and their business associates. In 2002, he quit his regular job in order to devote full time to his juice business. He soon reached his capacity because of his inability to personally over a larger area with his pickup truck. Advertising was on a
small scale because of limited funds. Faced with the problems of glass bottle breakage and limited advertisement and distribution, Mr. Deepak approached a regional food distributor for a solution Mr. Deepak was offered a plan where by the distributor would advertise and distribute the product on the basis of 25
percent of gross sales. The distributor would assist Mr. Deepak in securing a loan from the local bank to
expand the production. Before he had an opportunity to contact the bank to borrow money, Mr. Deepak was introduced to Mr. Sunil, a plastics engineer, who produced plastic containers. Mr. Deepak mentioned his own problems in the expansion of his business. Mr. Sunil wanted to finance expended juice production with the understanding that plastic containers would be used for marketing the orange juice. He would lend the money interest free, but he was to receive 40 percent of the net profits for the next ten years. Distribution and advertising agent for 25 percent of gross sales. The principal on Mr. Sunil's invested money was to be repaid by Mr. Deepak on a basis of 10 percent of his share of the profits. Mr. Sunil was to retain an interest in the profits of the firm until the loan was
repaid, or at least for ten years.

Mr. Deepak's current sales were 10,000 litres of juice a month. If distribution could be expanded, sales could be doubled, given the potential demand. Of the possible total sales of 20,000 a month, about 75 percent would be sold to large restaurants and the reminder to small cafes and canteens. As soon as the juices were bottled in plastic containers, sales could also be made to household consumers. Mr. Deepak was very optimistic that sales to the final consumer through retail shops would succeed. Some initial contacts were made with a local manager of a food chain supermarket. The manager was sure that he could sell 4,000 litres
a month through his outlets.

Mr. Deepak also calculated his potential profits. His goal was to increased sales while at the same time earning a 10 percent rate of return on his prior capital investment in equipment and other assets. The present value of Mr. Deepak's investment was Rs. 2,50,000. Of this sum, machinery and equipment were valued at
Rs. 1,00,000; building was worth Rs. 50,000 and his ptent and know-how were valued at Rs. 1,00,000. On the basis of this evaluation, Mr. Deepak desired a return of Rs. 25,000 above salaries and other expenses after the first year of operation.

Both the regional distributor and Mr. Sunil believed that Mr. Deepak's sales could be increased to 15,000 litres of juice per month by the end of the first year of expanded operations. However, the extent to which production could be expanded to meet demand depended on the availability of plastic containers (which
would be supplied at factory cost under Mr. Sunil's proposal), and additional machinery. Increased market coverage would be obtained both under the regional food distributor and Mr. Sunil's proposals. The critical  deciding factor, as Mr. Deepak understood, was which plan would maximize his return on investment beyond the minimum figure of 10 percent.

11. Cost of securing a loan
(1) If the item is a Major Objective in making the decision: that is , the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) The item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not
immediately relevant to the situation.

12. High breakage rate of glass bottles.
(1) If the item is a Major Objective in making the decision: that is , the outcome or result sought by the decision maker
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

13. Expansion of the business
(1) If the item is a Major Objective in making the decision: that is , the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

14. Continued demand by the public for Mr. Deepak's orange juice
(1) If the item is a Major Objective in making the decision: that is, the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

15. Possibility of doubling sales through expanded distribution
(1) If the item is a Major Objective in making the decision: that is , the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

16. Previous use of Mr. Deepak's building as a woodworking shop
(1) If the item is a Major Objective in making the decision: that is , the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

17. Ten percent return of investment
(1) If the item is a Major Objective in making the decision: that is , the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

18. Small scale of current advertising
(1) If the item is a Major Objective in making the decision: that is, the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentione in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

19. Value of patent held by Mr. Deepak.
(1) If the item is a Major Objective in making the decision: that is , the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

20. Mr. Deepak's current level of sales.
(1) If the item is a Major Objective in making the decision: that is , the outcome or result sought by the decision maker.
(2) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned in the passage that is basic in determining the decision.
(3) If the item is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.
(4) If the item is a Major Assumption made deliberately; that is a supposition or projection made by the decision maker before considering the factors and alternatives.
(5) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not immediately relevant to the situation.

SECTION II

READING COMPREHENSION

Direction: This section contains two reading passages. You have to read each carefully. Each passage is followed by questions based on its content. After reading each passage, choose the best answer to eachuestion. The questions are based on what is stated or implied in each passage.
 

PASSAGE I (Questions 21 – 30)

The concept of "standard of living" is a wide and multifaceted one. In the absence of comprehensive measurement, it is commonly expressed empirically in terms of consumption or in terms of income.
One of the most comprehensive expressions of standard of living is total consumption over an extended period, where consumption is defined not only as family purchases but also as
 (1) consumption of goods and services produced by the family;
(2) consumption of public services provided without payment; and
(3) consumption of goods and services received as compensation for labor, over and above wages and salary. It may be assumed that total consumption is less subject to incidental fluctuations than income. Moreover, it reflects not only current income but also past income and savings, windfalls, and expectations regarding
future income.

Current monetary income constitutes the main indictor for the standard of living; however, standard of living is not determined solely by current income, but also by past income, accumulated assets and expectations for future income. Moreover, the standard of living of a family is influenced by the value of the public services
from which it benefits and the rate of taxes which it has to pay.

In the period under review, the standard of living of families originating from Asia and Africa improved relative to that of all families. This improvement found expression in higher income levels, better housing, higher ownership rate of consumer durables and an increase in the proportion of families in higher income brackets.
However, even after the improvement in their relative position during the past decade, their average income is still only 70% of the overall average for all families.

One of the important factors behind the income differential between families of African and Asian originals and the rest of the populations is the level of education. In rent years the gap between these two groups has narrowed among the younger generation, but it is still substantial. Unless the education gap is significantly
reduced between these two groups, other means employed in an attempt to produce more income equality will be thwarted. More resources must be immediately put to the task of improving educational opportunities for families of African and Asian origin, without of course, reducing the education facilities and opportunities
open to the rest of the population.

21. The author defines 'standard of living' in terms of
(1) Total goods and services produced (2) Consumption of goods and services
(3) Real income (4) Per capita income
(5) Discretionary income.

22. Which income period (s) would be included in the author's definition of 'standard of living;?
I. Past income II. Current Income III. Future income
(1) I only (2) II only (3) I and II only (4) I, II and III
(5) Either I, II and III

23. Consumption is defined as
(1) Total family purchases
(2) Total family purchases plus goods and services produced by the family
(3) Public services provided by the state.
(4) Income minus expenditure on necessities
(5) Total family purchases plus other goods and services consumed

24. Between 1994 and 2000, average real income
(1) Remained stable
(2) Increased by about 5% annually
(3) Decreased slightly
(4) Decreased during the recession
(5) Decreased by 5% annually

25. According to the passage, between 1997 and 2000, income equality
(1) Declined among all strata
(2) Declined most significantly among lower income groups
(3) Widened between the rich and the poor strata
(4) Did not change appreciably
(5) Declined among older groups in the population.

26. The author believes that inequality of income might be narrowed if
(1) The tax structure was reformed
(2) The educational gap between different population groups was reduced
(3) More jobs could be found for people of Asian-African origin
(4) Real income increased
(5) A system of price controls was implemented

27. The standard of living of Asian - African immigrants has improved as measured by all of the following
factors except
(1) Higher income levels
(2) Better housing
(3) Increased ownership of consumer durables
(4) A shift in population centres
(5) An increased proportion of Asian - African families in higher income brackets.

28. It may be inferred that the author of the passage is an
(1) Engineer (2) Food specialist (3) Economist
(4) Bank president (5) Efficiency expert

29. Even though the income level of families of Asian - Africa origin increased relatively, their average
income is still
(1) Only about equal to that of other groups
(2) About 70 percent of the overall national average
(3) Close to the national average, but slightly below
(4) About 50 percent of the national average
(5) About 25 percent of the national average

30. Between 1997 and 2000, the standard of living of the urban population
(1) Declined (2) Increased (3) Stagnated (4) Remained constant (5) Doubled

PASSAGE II (Questions 31 – 40)

Much has been written about the need for increasing our knowledge of marketing in other countries and how different marketing systems operate in delivering goods and services to consumers. Indian businessmen have long been interested in foreign markets for the purpose of stimulating trade. Analysis of the mechanisms of
the given country's internal trade and the structural and environmental factors of its marketing system are necessary to the success of an Indian firm's marketing efforts aboard.

Knowledge of a country's marketing system is of equal importance to the potential investor. Information pertaining to channels of distribution, promotional facilities, and the marketing experience of management should have weight in the investment decision equal to factors such as financing the possibility of
expropriation and plant location. Moreover, Indian businessmen are certainly not limited to investment in manufacturing industry aboard; there may be profitable opportunities for the introduction of Indian marketing institutions and techniques in other countries. The extent to which Indian rupees should be channeled into the
introduction of Indian marketing innovations depend upon the answers to the following questions: (1) to what extent is it possible to " transplant" Indian marketing operations or institutions to foreign countries, and (2) would such transplantations, if successful, contribute to the economic development of the recipient country?
In light of the above, research is needed to determine the factors responsible for the acceptance and growth of marketing innovations so that an understanding of the adoption process can aid Indian businessmen contemplating the introduction of similar marketing techniques in other developing countries.
 
Take the case of the marketing innovation: self-service. Whether self -service shops can be successful outside India depends upon sufficient population density, consumer income and the availability of suitable store locations and manpower. But even when these environmental forces are positive, cultural constraints
may still serve as a barrier to the development of self-server. For example, a packaged food industry cannot develop unless culturally developed habits of buying only "fresh" foods and produce can be overcome. Moreover, consumers must be sufficiently literate to select products from store shelves without the help of
sales clerks.
The traditional pattern of shopping (in many countries) at different locations for each category of goods -e.g. dairy products, vegetables, meat, etc. is a custom that has been learned and reinforced over many years. It does not break down easily. Daily shopping trips may be re of a social Endeavour, provided the housewife
can have contract with her friends at the local market or grocery, although hand-to-mouth buying may also
result from low incomes and lack of refrigerating and storage facilities. In Israel, the first supermarket was successful in changing the shopping patterns of many housewives who traditionally shopped at different stores for meat, dairy products, vegetables and fruit, and baked goods. Housewives preferred the self-service shop because it refaced total shopping time and offered quality food at lower prices. Working women switched to the self-service shop because it is open during their lunch hour, unlike the small shops that close at midday for several hours. Besides introducing a wider assortment of
products at lower prices, standardized packaging, pricing, and quality was offered to the Israeli consumer. Although prepackaged meats and produce were not accepted by many consumers at first, there are indications that buying habits have changed. For example, packaged meat now accounts for about 25 percent
of total sales of Israel's two major self-service food chains.

31. According to the author, knowledge of foreign marketing systems is essential because it
(1) Cements relation between countries
(2) Helps us to know about other people
(3) Can help to stimulate foreign trade
(4) Improves channel of distribution
(5) Teaches us something about our marketing system.

32. The passage implies that marketing can contribute to
(1) Improving goods and services
(2) Economic development
(3) More efficient promotion and advertising
(4) Full employment
(5) Growth of economic institutions

33. Successful introduction of Indian marketing techniques abroad depends upon the
(1) Educational level in the host country
(2) Amount of investment capital available
(3) Use of efficient channels of distribution
(4) Extent to which the techniques can be 'transplanted'
(5) Adaptability of Indian methods to 'foreign cultural conditions'

34. A most important constraint on the introduction of self service shops seems to be
(1) Cultural barriers (2) Income (3) Education
(4) Capital formation (5) Population dispersion

35. In Israel, daily shopping trips to the food market occur because of
(1) A lack of supermarkets (2) Social reasons as much as economic ones
(3) Low per-capita income (4) Poor transportation facilities
(5) Fluctuating food supplies.

36. Working women in Israel prefer self - service shops owing to their
(1) Lower food prices
(2) Better quality food products
(3) More convenient shopping hours
(4) Wider choice of commodities
(5) Pre-packaged meats and vegetables.

37. Concerning the transfer of Indian marketing techniques abroad, the author concludes that
(1) Most countries can accept these techniques
(2) They are not operable in most countries
(3) More research is needed into this subject
(4) The transfer depends upon capital availability
(5) In general, only developed countries can use Indian marketing techniques

38. The author states that adoption of self-service is a function of
I. Household income
II. Cultural and structural constraints
III. Population destiny
(1) I only (2) III only (3) I and II only
(4) II and III only (5) I, II and III

39. The article from which this passage was extracted probably appeared in an
(1) Academic journal (2) Accounting journal (3) Consumer newsletter
(4) Popular magazine (5) Newspaper editorial

40. Based on the Israeli experience, we can conclude that the adoption of self-service by developing
countries.
(1) Is hopeless
(2) Shows some promise
(3) Is likely to proceed with great rapidity
(4) Hinders upon a large population of working women
(5) Depends upon a large population of working women

SECTION III

PROBLEM SOLVING (QUESTIONS 41 - 60)

Directions: For each of the following questions, select the choice which best answers the questions or completes the statement

41. If m, n, o and p are real numbers, each of the following expressions equals m(nop) EXCEPT
(1) (op)(mn) (2) ponm (3) p(onm)
(4) (mp)(no) (5) (mn) (mo)(mp)

42. If the area of the triangle BCE is 8, what is the area of the square ABCD?
(1) 16 (2) 82 (3) 8 (4) 4 (5) 22

43. The diagonal of the floor of a rectangle closet is 7.5 m. The shorter side of the closet is 4.5 m. What is
the area of the closet in square meter?
(1) 37 (2) 27 (3) 54/4 (4) 21/4 (5) 5

44. John has more money than Sam but less than Bill. If the amount held by John, Sam and Bill are x, y
and z respectively, which of the following is true?
(1) z < x < y (2) x < z < y (3) y < x < z (4) y < z < x (5) x < y < z

45. If mx + ny = 12my and my ≠ 0, then x/y + n/m =
(1) 12 (2) 12 mn (3) 12m + 12y (4) 0 (5) mx + ny

46. Some students planned a picnic. The budget for food was Rs 500. But, 5 of them failed to go and thus
the cost of food for each member increased by Rs 5. How many students attended the picnic?
(1) 15 (2) 25 (3) 20 (4) 30 (5) 45

47. Which of the following must be true?
I. Any two lines which are parallel to a third line are also parallel to each other
II. Any two planes which are parallel to a third plane are parallel to each other
III. Any two lines which are parallel to the same plane are parallel to each other.
(1) I only (2) II only (3) I and II only
(4) II and III only (5) I, II and III

48. The co-ordinates of the vertices A, B of square ABCD is (2, 0) and (0, 2) respectively. What is the area
of the square ABCD?
(1) 2 (2) 4 (3) 4√2 (4) 8 (5) 8√2

49. A figure that can be folded over along a straight line so that the result is two equal halves which are
then lying on top of one another with no overlap is said to have a line of symmetry. Which of the
following figures has only one line of symmetry?
(1) Square (2) Circle (3) Equilateral Triangle
(4) Isosceles triangle (5) Rectangle

50. A labourer is paid Rs. 8 per hour for an 8 hour day and 1.5 times that rate for each hour in excess of 8
hours in a single day. If the labourer received Rs. 80 for a single day's work, how long did he work on
that day?
(1) 6 hrs 40 min (2) 9 hrs 20 min (3) 9 hrs 30 min
(4) 9 hrs 40 min (5) 10 hrs