- English Language
- GK
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Intelligence & CR
- Alphabet & Number Ranking
- Analytical Reasoning
- Blood Relations Test
- Coding - Decoding
- Comparision of Ranks
- Direction Sense Test
- Mathematical Operation / Number Puzzles
- Series
- Sitting Arrangement
- Statement and Arguement
- Statement and Conclusion
- Statement and Course of Action
- Statement-Assumption
- Syllogism
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Mathematical Skills
- Average
- Calender
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- Logarithms
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- Number System
- Percentage
- Permutation and Computation
- Probability
- Profit and Loss
- Ratio and Proportion
- Set Theory
- Simple calculations
- Simple Equations
- Simple Interest and Compound Interest
- Time and Work
- Time, Speed and Distance
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7.
I suggest that the essential character of the Trade Cycle and, especially, the regularity of time-sequence and of duration which justifies us in calling it a cycle, is mainly due to the way in which the marginal efficiency of capital fluctuates. The Trade Cycle is best regarded, I think, as being occasioned by a cyclical change in the marginal efficiency of capital, though complicated and often aggravated by associated changes in the other significant short period variables of the economic system.
By a cyclical movement we mean that as the system progresses in, e.g. the upward direction, the forces propelling itupwards at first gather force and have a cumulative effect on one another but gradually lose their strength until at a certain point they tend to be replaced by forces operating in the opposite direction; which in turn gather force for a time and accentuate one another, until they too, having reached their maximum development, wane and give place to their opposite. We do not, however, merely mean by a cyclical movement that upward and downward tendencies, once started, do not persist for ever in the same direction but are ultimately reversed. We mean also that there is some recognizable degree of regularity in the time-sequence and duration of the upward and downward movements. There is, however, another characteristic of what we call the Trade Cycle which our explanation must cover if it is to be adequate; namely, the phenomenon of the „crisis‟ the fact that the substitution of a downward for an upward tendency often takes place suddenly and violently, whereas there is, as a rule, no such sharp turning-point when an upward is substituted for a downward tendency. Any fluctuation in investment not offset by a corresponding change in the propensity to consume will, of course, result in a fluctuation in employment. Since, therefore, the volume of investment is subject to highly complex influences, it is highly improbable that all fluctuations either in investment itself or in the marginal efficiency of capital will be of a cyclical character.
We have seen above that the marginal efficiency of capital depends, not only on the existing abundance or scarcity of capital-goods and the current cost of production of capital-goods, but also on current expectations as to the future yield of capital-goods. In the case of durable assets it is, therefore, natural and reasonable that expectations of the future should play a dominant part in determining the scale on which new investment is deemed advisable. But, as we have seen, the basis for such expectations is very precarious. Being based on shifting and unreliable evidence, they are subject to sudden and violent changes. Now, we have been accustomed in explaining the „crisis‟ to lay stress on the rising tendency of the rate of interest under the influence of the increased demand for money both for trade and speculative purposes. At times this factor may certainly play an aggravating and, occasionally perhaps, an initiating part. But I suggest that a more typical, and often the predominant, explanation of the crisis is, not primarily a rise in the rate of interest, but a sudden collapse in the marginal efficiency of capital. The later stages of the boom are characterized by optimistic expectations as to the future yield of capital goods sufficiently strong to offset their growing abundance and their rising costs of production and, probably, a rise in the rate of interest also. It is of the nature of organized investment markets, under the influence of purchasers largely ignorant of what they are buying and of speculators who are more concerned with forecasting the next shift of market sentiment than with a reasonable estimate of the future yield of capital-assets, that, when disillusion falls upon an overoptimistic and over-bought market, it should fall with sudden and even catastrophic force. Moreover, the dismay and uncertainty as to the future which accompanies a collapse in the marginal efficiency of capital naturally precipitates a sharp increase in liquidity-preference and hence a rise in the rate of interest. Thus the fact that a collapse in the marginal efficiency of capital tends to be associated with a rise in the rate of interest may seriously aggravate the decline in investment. But the essence of the situation is to be found, nevertheless, in the collapse in the marginal efficiency of capital, particularly in the case of those types of capital which have been contributing most to the previous phase of heavy new investment. Liquidity preference, except those manifestations of it which are associated with increasing trade and speculation, does not increase until after the collapse in the marginal efficiency of capital. It is this, indeed, which renders the slump so intractable.[1] Which of the following does not describe the features of cyclical movement?
A. There is a cyclical change in the marginal efficiency of capital
B. The movement once starts in upward or downward direction does not get reversed
C. The time pattern and the duration of economic movements are recognizable
D. It is caused by the economic force working in opposite direction[2] Marginal efficiency of the capital does not depend on which of following factors?
A. Demand and supply of capital goods
B. Cost of production of capital goods
C. Expectations regarding future return from capital goods
D. Availability of capital[3] Which of the following explains the phenomenon of crisis?
I. A sudden collapse in the marginal efficiency of capital
II. Increase in the rate of interest causing the decline in investments
III. A sudden and violent substitution of upward movement by a downward tendency
IV. Decline in the liquidity preference of the investors
A. I & II
B. I, II, and III
C. I, II, and IV
D. II, III, and IVasked in IIFT
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8.
The most important task is revitalizing the institution of independent directors. The independent directors of a company should be faithful fiduciaries protecting, the long-term interests of shareholders while ensuring fairness to employees, investor, customer, regulators, the government of the land and society. Unfortunately, very often, directors are chosen based of friendship and, sadly, pliability. Today, unfortunately, in the majority of cases, independence is only true on paper.
The need of the hour is to strengthen the independence of the board. We have to put in place stringent standards for the independence of directors. The board should adopt global standards for director-independence, and should disclose how each independent director meets these standards. It is desirable to have a comprehensive report showing the names of the company employees of fellow board members who are related to each director on the board. This report should accompany the annual report of all listed companies.
Another important step is to regularly assess the board members for performance. The assessment should focus on issues like competence, preparation, participation and contribution. Ideally, this evaluation should be performed by a third party. Underperforming directors should be allowed to leave at the end of their term in a gentle manner so that they do not lose face. Rather than being the rubber stamp of a company‟s management policies, the board should become a true active partner of the management. For this, independent directors should be trained in their in their in roles and responsibilities. Independent directors should be trained on the business model and risk model of the company, on the governance practices, and the responsibilities of various committees of the board of the company. The board members should interact frequently with executives to understand operational issues. As part of the board meeting agenda, the independent directors should have a meeting among themselves without the management being present.
The independent board members should periodically review the performance of the company‟s CEO, the internal directors and the senior management. This has to be based on clearly defined objective criteria, and these criteria should be known to the CEO and other executive directors well before the start of the evolution period. Moreover, there should be a clearly laid down procedure for communicating the board‟s review to the CEO and his/her team of executive directors. Managerial remuneration should be based on such reviews.
Additionally, senior management compensation should be determined by the board in a manner that is fair to all stakeholders. We have to look at three important criteria in deciding managerial remuneration-fairness accountability and transparency. Fairness of compensation is determined by how employees and investors react to the compensation of the CEO. Accountability is enhanced by splitting the total compensation into a small fixed component and a large variable component. In other words, the CEO, other executive directors and the senior management should rise or fall with the fortunes of the company. The variable component should be linked to achieving the long-term objectives of the firm. Senior management compensation should be reviewed by the compensation committee of the board consisting of only the independent directors. This should be approved by the shareholders. It is important that no member of the internal management has a say in the compensation of the CEO, the internal board members or the senior management.
The SEBI regulations and the CII code of conduct have been very helpful in enhancing the level of accountability of independent directors. The independent directors should decide voluntarily how they want to contribute to the company. Their performance should decide voluntarily how they want to contribute to the company. Their performance should be appraised through a peer evaluation process. Ideally, the compensation committee should decide on the compensation of each independent director based on such a performance appraisal.
Auditing is another major area that needs reforms for effective corporate governance. An audit is the Independent examination of financial transactions of any entity to provide assurance to shareholder and other stakeholders that the financial statements are free of material misstatement. Auditors are qualified professionals appointed by the shareholders to report on the reliability of financial statements prepared by the management. Financial markets look to the auditor‟s report for an independent opinion on the financial and risk situation of a company. We have to separate such auditing form other services. For a truly independent opinion, the auditing firm should not provide services that are perceived to be materially in conflict with the role of the auditor. These include investigations, consulting advice, sub contraction of operational activities normally undertaken by the management, due diligence on potential acquisitions or investments, advice on deal structuring, designing/implementing IT systems, bookkeeping, valuations and executive recruitment. Any departure from this practice should be approved by the audit committee in advance. Further, information on any such exceptions must be disclosed in the company‟s quarterly and annual reports.
To ensure the integrity of the audit team, it is desirable to rotate auditor partners. The lead audit partner and the audit partner responsible for reviewing a company‟s audit must be rotated at least once every three to five years. This eliminates the possibility of the lead auditor and the company management getting into the kind of close, cozy relationship that results in lower objectivity in audit opinions. Further, a registered auditor should not audit a chief accounting office was associated with the auditing firm. It is best that members of the audit teams are prohibited from taking up employment in the audited corporations for at least a year after they have stopped being members of the audit team.
A competent audit committee is essential to effectively oversee the financial accounting and reporting process. Hence, each member of the audit committee must be 'financially literate‟, further, at least one member of the audit committee, preferably the chairman, should be a financial expert-a person who has an understanding of financial statements and accounting rules, and has experience in auditing. The audit committee should establish procedures for the treatment of complaints received through anonymous submission by employees and whistleblowers. These complaints may be regarding questionable accounting or auditing issues, any harassment to an employee or any unethical practice in the company. The whistleblowers must be protected.
Any related-party transaction should require prior approval by the audit committee, the full board and the shareholders if it is material. Related parties are those that are able to control or exercise significant influence. These include; parentsubsidiary relationships; entities under common control; individuals who, through ownership, have significant influence over the enterprise and close members of their families; and dey management personnel.
Accounting standards provide a framework for preparation and presentation of financial statements and assist auditors in forming an opinion on the financial statements. However, today, accounting standards are issued by bodies comprising primarily of accountants. Therefore, accounting standards do not always keep pace with changes in the business environment. Hence, the accounting standards-setting body should include members drawn from the industry, the profession and regulatory bodies. This body should be independently funded.
Currently, an independent oversight of the accounting profession does not exist. Hence, an independent body should be constituted to oversee the functioning of auditors for Independence, the quality of audit and professional competence. This body should comprise a "majority of non-practicing accountants to ensure independent oversight. To avoid any bias, the chairman of this body should not have practiced as an accountant during the preceding five years. Auditors of all public companies must register with this body. It should enforce compliance with the laws by auditors and should mandate that auditors must maintain audit working papers for at least seven years.
To ensure the materiality of information, the CEO and CFO of the company should certify annual and quarterly reports. They should certify that the information in the reports fairly presents the financial condition and results of operations of the company, and that all material facts have been disclosed. Further, CEOs and CFOs should certify that they have established internal controls to ensure that all information relating to the operations of the company is freely available to the auditors
and the audit committee. They should also certify that they have evaluated the effectiveness of these controls within ninety days prior to the report. False certifications by the CEO and CFO should be subject to significant criminal penalties (fines and imprisonment, if willful and knowing). If a company is required to restate its reports due to material non-compliance with the laws, the CEO and CFO must face severe punishment including loss of job and forfeiting bonuses or equity-based compensation received during the twelve months following the filing.[1] The problem with the independent directors has been that:
I. Their selection has been based upon their compatibility with the company management
II. There has been lack of proper training and development to improve their skill set
III. Their independent views have often come in conflict with the views of company management. This has hindered the company‟s decision-making process
IV. Stringent standards for independent directors have been lacking
A. I and II only
B. I, II, and III only
C. II, II, and IV only
D. I, II, IV only[2] Which of the following, according to author, does not have an impact on effective corporate governance?
A. Increased role and importance of independent directors
B. Increased compensation to independent directors
C. Not hiring audit firms for other services
D. Stringent monitoring and control of related party transactions[3] To improve the quality and reliability of the information reported in the financial statements:
I. Accounting standards should keep pace with the dynamic business environment
II. There should be a body of internal auditors to oversee the functioning of external auditors
III. Reports should be certified by key company officials
IV. Accounting standards should be set by a body comprising of practicing accountants only and this body should be funded from a corpus built up from the contributions made by the companies.
A. I, and II
B. II, and III
C. I, and III
D. I, III, and IV[4] Which of the following may not help in improving in the accountability of management to the shareholders?
A. A third party assessment of the performance of independent directors
B. Rotation of audit partner
C. Increasing the fixed component in the salary structure of the management
D. Laying down a proper procedure for handling complaints regarding unethical practices[5] The author of the passage does not advocate:
A. Increased activism of independent directors
B. Measures to improve the independence of auditors
C. Framing the accounting standards in the light of changing business conditions
D. Active intervention by the regulators in the day-to-day functioning of the companyasked in IIFT
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9.
In the early 1950s, a plague clouded the American landscape. A mysterious virus stalked the nation’s youth like a silent, invisible killer. For generations, it had been devouring young lives. But in the previous
three decades the number of its victims had increased dramatically. Those it did not kill, it left hopelessly paralyzed and deformed. Mewspaper artists sometimes depicted the disease as a dragon. Its common name was infantile paralysis, or poliomyelitis, or simply polio.
Polio struck every summer, turning strong bodies into crumpled ones, leaving in its wake withered limbs in steel braces and straps. It was simply expected when the children returned to school each fall that a friend or classmate would have been lost to polio over the summer. Everyone knew a victim - if not in their own family, it was the boy down the street or one on the next street. By the early 1950s, some 50,000 cases per year were being reported, and 1952 alone saw 59,000 new cases.
But in April of 1955 a miracle occurred. It came in the form of an announcement that a vaccine had been discovered that could actually prevent polio. With completion of a series of research field tests, the news media hailed it as the most dramatic breakthrought in the history of medical research.
The hero of the day; the man slew the polio dragon, was a shk young doctor named Jonas Salk. Stories of
his heroic effort to perfect his vaccine filled the newspapers. In the months prior to final development of the vaccine, Salk had pushed himself to the limits of human endurance. Realizing he was close to a breakthrough, he worked seven days a week, often up to 20 or 30 hours at a time without sleep. He often skipped meals. the public lionized him for his efforts. But that was not the case among those in those scientific community. Behind the scenes, unknown to the public, Salk was being vilified by his peers. At one point some leading scientists even tried to stop distribution of his life-saving vaccine.
Salk’s fellow scientists in biological research considered him an outsider, intruding into their domain. In fact, in order to acquire funds for his research, Salk had to go outside normal channels. When he did so, scientists accused him of being a publicity hound. The research establishment was especially jealous of Salk’s relationship with Basil O’Connor, the man who supplied much of his funding. As president of the National Foundation for Infantile Paralysis, O’Connor held the purse strings to millions in research dollars. And he believed in Salk.
Basil O’Connor knew firsthand the devastating effects of the disease. His daughter had been stricken with polio. And when O’Connor was young man, Franklin Roosevelt had been his best friend and law partner, long before becoming president of the United Staes.O’Connor had seen polio turn an athletic young Roosevelt into a man unable to stand without leg braces and walking sticks.In Jonas Salk, O’Connor found someone who shared his outright hatred for the disease.
Viewed in retrospect, one might understand the opposition of biological research scientists to Salk’s method. He made many transgressions against traditional research. For one thing, the very efficacy of his vaccine toppled one of the most universally accepted (though erroneous) tenets of orthodox virology - the motion that an active virus could not be checked by its own dead viral bodies. That was precisely the path Salk chose to develop his vaccine.
For decades, traditional biologists had been waging what they considered a deliberate, correct, gentleman’s fight against polio with efforts focused on treatment rather than prevention. By contrast, Salk fought the dragon like a man possessed, seeking a final cure. He had grown up on the fringes of poverty and developed an attitude more humanist than scientific, a man unwilling to abide senseless rules in the face of a crisis. He flailed against the disease like a punch-drunk street fighter-and he landed a knockout blow. Finally, his success proved the greatest transgression of all against his fellow scientists. By the 1950s, researching polio was a very big business, and overnight, Salk made further efforts redundant. It was unheard of that an outsider, working independently;could accomplish what the nation’s top scientists with their great laboratories and countless millions of dollars could not. They expressed their bitterness in rather petty ways, even refusing to accept Salk into the National Academy of Science. The reason? Salk, they contended, was not really a scientist - only a technician.
The public never knew the depths of his colleagues’ resentment. It was almost a decade after his discovery before Salk himself would even discuss it. “The worst tragedy that could have befallen me was my success,” he told an interviewer. “I knew right away that I was through, that I would be cast out.”
But he was not through. With the polio dragon defeated, he launched a campaign to raise funds to construct the Salk Intitute for Biological Studies at Torrey Pines, California. He worked there, surrounded by bright, young scientists until his death at age eighty. Salk later became obsessed with finding a cure for the human immunodeficiency virus (HIV) that causes AIDS. Also until the day he died, he was trying to catch lightning in a test tube one last time. Perhaps a man is allotted only one miracle in his lifetime.
Today, research scientists work in the laboratories Jonas Salk built, searching for mew weapons in the fight against dragons that defy destruction: cancer, AIDS, Alzheimer’s, cerebral palsy, multiple sclerosis, and Parkinson’s. Among those scientists at Torrey Pines, waging gentlemanly wars against the microscopic enemies of man, perhaps a new maverick will emerge - a stubborn street fighter who will defeat the odds and capture the lightning that eluded Jonas Salk.[1] Which of the following statement is true?
(A) For a long time the efforts made by traditional biologists in the battle against polio had been a combination of finding cure for the polio patients as well as preventing the never occurrences.
(B) Within three years from the menace of polio reaching a new peak, the antidote for the deadly disease was discovered by a relatively lesser known person.
(C) Basil O’Connor had been a good friend of Theodore Roosevelt and his law partner.
(D) The scientists at Salk Institute for Biological Studies are currently doing research to invent medicines to ensue permanent cures for diseases like AIDS, cerebral palsy,. multiple stenosis etc.[2] Which of the following statement is false?
(A) A major proportion of the funds required for the research by Dr. Salk came from National Foundation for Infantile Paralysis, whose president Basil O’Connor ensured the requisite amount for him.
(B) The extent of the resentment of the colleagues’ of Dr. Salk over his achievement was known to the people almost thirty years after the invention of the vaccine against the disease.
(C) The top scientists of the country did not favour the entry of Dr. Salk into National Academy of Science on the ground of his lack of professional qualification with respect to medical and biological science.
(D) The driving reason behind the success of Dr Salk was the fact that he did not accept the framework developed by traditional virology research as foolproof, which was a key factor behind his success.[3] Match the following:
List I
i. Salk
ii. Polio
iii. Field tests
iv. HIV Research
List II
a. Dragon
b. Breakthrough
c. Torrey Pines
d. Vilified
(A) ii-c, iii-b, iv-a (B) 1-c, iii-c, iv-a (C) i-d, ii-a, iii-b. (D) ii-a, iii-c, iv-b.asked in IIFT
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10.
Around the turn of the century; and interesting trend was slowly becoming prominent in retailing across the globe. Department stores were slowly becoming prominent in retailing across the globe. Department stores were slowly becoming less and less popular with customers. Large department stores offered a wide range of product categories - from apparel, luggage, toys, crockery, to home furnishing - as well as owned and managed the stock of products they sold inside the store and from their warehouses.Industry analysts started questioning whether this could still be the ideal retail model, and whether the changing retail environment marked the end of large department stores as we knew them.
On one side there were the stores that focussed on a particular category - electronics, toys, women’s wear or home appliances. Over the years, these had evolved into giant superstores and had become very
popular with customers who went shopping for a particular product. On the other hand, there were discounters, hypermarkets and wholesale clubs that served the new age shoppers found their ambience to be formal and boring.
To keep pace with these trends, some department stores were steadily reinventing themselves. The most prominent among them was UK based selfridges chain. In 2003, Selfridges launched a new store in Birmingham, England that completely reinvented the idea of the department store. Brands competed with each other within the store but there was no heirarchy of goods: watches competed with each other perfume, and luggage with fashion. In addition the store organised various show stunts and performances through the day and called it, ‘shopping entertainment.’ Similar stores had come up in various parts of Southeast Asia, Japan and Europe. For customers, these new-age department stores seemed like mall, just the they didn’t have the walls that separate the different stores within a mall.
While this trend was becoming more and more apparent abroad, within India too, certain consumer patterns were emerging. Our experience showed that a customer visiting a mall typically walks into four or five stores. That includes a large store and a few smaller brand showrooms. After that fatigue sets in and he or she is unwilling to walk into any more stores at the mall.So we asked ourselves, what would happen if we removed the walls between the different stores in a mall? In that case, a customer would be exposed to multiple brands at the same time, without the necessity of walking in and out of different stores. And along with shopping we could also provide her with other entertainment options.
Within the company itself there was a renewed confidence and an urge to play a larger role in shaping the modern retailing space in India.We had completed more than six years in retailing. With Big Bazaar we had tried and tested our skills at offering a wide range of categories while Pantaloons was firmly positioned in the lifestyle segment. We could now create shopping and entertainment landmarks in the cities in which we had already established a strong presence.
There three insights - the metamorphosis of department stores into developed markets; customer fatigue at the existing shopping malls in India; and the need to create working on, Central. The objective was to create a retail format that was must larger and totally different from what India had seen till then. It would offer everything - from multiple brands for shopping, to restaurants, coffee shops, entertainment options and gaming zones - all under one roof.If we were able to deliver ton these two fronts, we could attract customers from every part of the city and make it the city’s prime shopping destination.
There were a couple of the issues that the Central model addressed quite well. Pantaloons outlets had
limited space. We were positioning it as a fashion destination and thr business model was based on
selling mostly brands that we owned, or what are called private labels. However, with its increasing popularity; we were being approached by multiple foreign and Indian brands to stock these at Pantaloons. Central, being far bigger in size allowed us to open up a lot of space for other brands paid us a certain percentage of their sales in the mall as commission. Based on the performance of these brands, we could decide on which to keep and which to discard.
The first Central mall was launched in Bangalore in May 2004. Measuring 1,20,000 square feet, it was
spread over six floors and housed over three husband brands in categories like apparel, footwear, accessories, home furnishing, music and bools. In addition we had coffee shops, food courts, a Food Bazaar, restaurants, pubs and discotheques. A customer could also book tickets for movies and concerts, book travel tickets and make bill payments.
What has primarily made Central the ‘destination mall’ for Bangalore is its location.It is located in the heart of the city, at M.G. Road, where once Hotel Victoria stood. Moreover, we added a lot of features to further establish it as the focal point of the city.The Central Square located outside the mall building has been made available for art exhibitions, cultural performances, shows and product launches. And in 2005, the vintage car rally was flagged off from the Central flag-point, which has since become the epicenter for many such events.Thus, Central captured in all its glory what we wanted a destination mall to be, and loved up to its tagline of ‘Shop, Eat, and Celebrate.’
Soon after the launch of Bangalore Central, we opened the second Central in Hyderabad in November 2004. Once again it was located at the heart of the city on the Punjagutta Cross Road. Here, the roads connecting the city centre with Secunderabad, Jubllee Hills and the old part of the city; converge. It was more than double the size of Bangalore Central.Apart from over hundreds of brands to shop, it had food courts, restaurants, as well as a five-screen multiplex managed by PVR Cinemas. Much like the one Bangalore, Hyderabad Central didn’t take much time to become the nerve centre of the city.With an annual retail turnover of around Rs 200 crore it is presently among the largest retail destinations in the country.[1] Which of the following statement is true?
(A) The Central mall in Hyderabad in 2004 occupies more than 2,40,000 square meter in are and currently considered as one of the largest retail destinations in the country with a generated annual retail destinations in the country with a generad annual retail turnover of around Rs. 200 crore.
(B) It has been observed during the last decade that the hypermarkets are slowing, failing to retain consumers in competition with the department stores.
(C) The market analysis convinced the company referred in the text that the time is rope to introduce now shopping and entertainment landmarks in cities, where they already enjoy some market presence.
(D) While the consumers were able to look for a certain category of products at length in the specialty stores, wholesale clubs allowed them to purchase a number of products at a cheap and negotiable rate.[2] Which of the following statement is false?
(A) The recent consumer response towards department stores led to the quest for a new business Model which may replace it in the coming days.
(B) Since inauguration the Central Square outside the mall in Hyderabad has been used for various purposes so far including, art exhibitions, cultural shows, product launches etc.
(C) When the company mentioned in the passage decided to capitalize on the emerging changes in consumer mindset on the retail sales, they already had an experience of nearly six years of operating in this market segment.
(D) The changing structural framework of the new type of malls became very popular in various European and Southeast Asian countries, owing to their boundary-less arrangement of products, coupled with shopping entertainment options.[3] Which of the following statement is false?
(A) Department Stores (B) Hypermarkets
(C) Wholesale Clubs (D) Super-speciality stores[4] Which of the following terms has not been mentioned in the above passage?
(A) The firm discussed here allowed various foreign and India garment companies to display their products in heir show room on the condition that they will pay them either some rent, or a pre-decided percentage of their sales as commission.
(B) Before going for the Central venture, the firm already had the experience of offering a wide range of product categories throuth Big Bazaar and in specialized segments through Pantaloons.
(C) The Central mall in Bangalore provided importance to both goods and services for business development: it displayed around two hundred brands in categories like garments, footwear, music, book etc. on one hand, and ensured eating and entertainment options, ticket-booking for movies and concerts, travel services and bill payments within its premises on the other.
(D) The reasons behind the losing out of the specialty stores had been multifarious, covering the traditional and unexciting environment, steep price competition from other rivals, inflexibility in operation etc.[5] Which of the following statement is false?
(A) In tune with the changing time, the new store created in Birmingham allowed brand competition within the store without explicit hierarchy of products, and organized various events to ensure lively amusement for the shoppers.
(B) Since visiting different stores even within a mega shopping complex gets monotonous once the initial excitement is over, the exposure to multiple brands simultaneously with removal of the walls has been a consumer-friendly move.
(C) The idea behind setting up a mega retail network was to make it city’s unque shopping location by ensuring exposure to multiple brands on one hand, and by making it an excellent hang-out option through setting up of entertainment and nourishment options on the other.
(D) The market analysis by the company described in the passage revealed that a representative buyer to a shopping center goes to at the most four or five stores, selecting large or small showrooms randomly.asked in IIFT
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11.
The trouble started on May 4, 2004,only days after Google’s celebrated coming- out party. Geico, the giant automobile insurer, filed a lawsuit against the search engine for trademark infringement. The insurer claimed the Google’s advertising system unlawfully profited form trademarks that Geico owned. Since all of Google’s revenue and growth was from advertising, the disclosure of the lawsuit appeared ominous. “We are, and may be in the future, subject to intellectual property right claims, which are costly to defend, could require us to pay damages, and could limit our ability to use certain technologies,” Google disclosed in public filing outlining potential risks. Abroad, where Google had promising growth prospects, similar court challenges
also arose. “A court in France held us liable for llowing advertisers to select certain trademarked terms as keywords,” the company declared. “We have appealed this decision. We were also subject to two lawsuits in Germany on similar matters.”
To make matters worse, it turned out that prior to its IPO filing, Google had eased its trademark policy in the U.S., allowing companies to place ads even if they were pegged to terms trademarked and owned by others. That was a significant shift, and one, Google warned could increase the risk of lawsuits against the company. It was also a practice that Yahoo, its search engine rival, did not permit. Google claimed it made the policy change to serve users, but some financial analysts said it appeared designed to pump profits before the IPO.
And there was more. Competition form Yahoo and Microsoft posed a greater challenger to Google following the disclosure about its mammoth profitability. With so much money at stake, the intensity of the competition would heat up. Such competition might be good for computer users searching the Internet, but Google said it posed additional risk for potential shareholders. “If Microsoft or Yahoo are successful in providing similar or better Web search results compared to ours or leverage their platforms to make their Web search services easier to access than ours, we could experience a significant decline in user traffic,” the company disclosed. In addition, Google warned that irs momentum seemed seemed unsustainable due to competition and “the inevitable decline in growth rates as our revenues increase to a higher level.”
The there was the question of Googles’s exclusive reliance on advertising, and one particular type of
advertising, for all of its revenue. That was potentially quite one particular type of advertising, for all of its revenue. That was potentially quite problematic. If Yahoo or Microsoft gained ground on search, users could flock to their Web sites, and advertisers could follow, “The reduction in spending by; or loss of, advertisers could seriously harm our business,” the company disclosed in its SEC filing.
In the beginning, the firm, earned all of its money from ads triggered by searches on Google.com. But now, most of its growth and half of its sales were coming primarily from the growing network of Web sites that displayed ads Google provided. This self-reinforcing network had a major stake in Google’s successful future. It gave the search engine, operating in the manner of a television network providing ads and programming to network affiliates, a sustainable competitive advantage. But there was a dark side there too, because of the substantial revenue firm a handful of Google partners, notably America Online and the search engine Ask Jeeves. If at any point they left Google and cut a deal with Microsoft or Yahoo, the lost revenue would be immense and difficult to replace. “If one or more of these key relationships is terminated or not renewed, and is not replaced with a comparable relationship, our business would be adversely affected,” the company stated.
Google’s small, nonintrusive text ads wee a big hit. But like major television an cable networks, which were hurt by innovations that enabled users to tune out commercials, the company faced the risk that users could simply turn ads off if mew technologies emerged.
Going public also posed a potentially grave risk to Google’s culture. Life at the Googleplex was informal.
Larry and Sergey knew many people by their first names and still signed off on many hires. With rapid
growth and an initial public offering, more traditional management and systems would have to be implemented. No more off-theshelf software to track revenue on the cheap. Now it was time for audits by major accounting firms. As Google’s head count and sales increased, keeping it running without destroying its culture was CEO Eric Schmidt’s biggest worry.
Google, the none that became a verb, had built a franchise and a strong brand name with global recognition based entirely on word of mouth. Nothing like it had been done before on this scale. The Internet certainly helped. But Google’s profitability would erode if the company were forced to begin spending the customary sums of money on advertising and marketing to maintain the strength of its brand awareness. Marketing guru Peter Sealey said privately that the advice he gave Google to study consumer perception of the Google brand was rejected by the company and that they were unwilling to spend money on marketing.[1] Which of the following statement is true?
(A) Google’s growing popularity has been a threat to other players operating in that market segment like Yahoo and Ask Jeeves, as Google eroded their market share.
(B) According to Google its decision to considerably relax its industrial design policy in the US was geared to satisfy its clients.
(C) One of the major challenges for Peter Sealey has been to expand the Google Empire while keeping its existing internal work culture intact.
(D) Google’s business potential is likely to be threatened seriously if the accessibility and quality of the Web search offered by its competitors like Microsoft or Yahoo becomes superior than the same offered by it.[2] Which of the following Statement is false?
(A) Google has been potentially vulnerable to external competition owing to its exclusive reliance on advertising for resource generation.
(B) By writing the “the none that became a verd”, the author indicates the growing popularity of the search engine.
(C) “non-intrusive” in the current passage refers to the advertisement format that does not directly hamper or distract the flow of operation of the person working in the computer.
(D) The legal dispute between Google and the automobile giant Geico during May 2004 centered on the advertising system and the trademark policy adopted by the latter.[3] What conclusion can you form about ‘Altavista’ from the passage?
(A) It has been a partner of Google.
(B) It has been a Competitor of Google.
(C) It can not be concluded from the passage.
(D) It was a partner of Google initially, but later emerged as a major competitor.[4] Which of the following sentence is false?
(A) Google has not been keen to undertake any major analysis on the popular impression about the Google brand.
(B) Google’s resolution to provide the search engine and programming to collaborators like America Online ensured significant revnue for bout sides involved.
(C) Google’s perceived concern over Intellectual Property issues in the passage has been quoted from a confidential company report.
(D) With increase in the volume of Google’s total annual revenue, it was anticipated by the management that the annual growth rate of their business may decline.asked in IIFT
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12.
Indian car rental market may be segmented under four broad categories. First, the most popular segment is of a fuel conscious and mileage hungry consumer who prefers a chauffer driven car. To extract maximum benefit from hired car, consumer representing (5) mileage per liter of fuel that he has paid for. Consumer of this segment is very price sensitive and wants maximum value for money even if he may rent an by unorganized players. Branded players are lagging behind to true this segment because (10) Indian marker, organized car rental industry is crawling for the last couple of years to position itself as a most sought after option to meet segment requirements. Hertz India is also practicing the same. To position itself perfectly in the mind of the targeted segment, it has gone for multiple strategic routes to win over different segments. The major external influencing factors for the consumer in this segment may (15) be the firm’s marketing efforts to establish itself as a service provider with value for money. Due to their association with renewed airlines and hotels, Hertz, to a lot many people means faith. This may help Her to create an impression in the mind of this segment that they will definitively be cheated and get their value, even if it means spending a little extra. Further, it is trying to educate this segment about (20) benefits of self-driven car as a medium of hassle-free journey by projecting a premium value for money image and with a fleet nix of compact and luxury cars (such as Ikon, Accent and Esteem). Second, a sizable amount of people are there who usually use their own compact or three box mid size car but prefer to enjoy the riding thrill of SUV (sports ?Utility Vehicles) (25) like Ford Endeavor/Honda CRV/GM Chevrolet or a Luxury car like a Mercedes/Camry for a shorter time span. Upcoming new generations urban executive of large corporate in India with a high disposable income and proactive to enjoy all new things in life and to make it more adventurous and eventful represent this segment. To them renting a self-drive car and driving off to a palace of their choice in a (30) Mercedes /SUV gives them an experience off to a place of their choice in a holiday. Under this same self-drive segment, another type of consumers are frequent international travelers (including foreign tourists) who prefer their privacy and independence and wish to choose their own routes/ car model at the time of exploring destination. They love their freedom & space in life whereever they (35) travel without any barrier like being driven by a chauffer. Equipped with their internationally accepted credit cards, an international driving permit or license, they prefer advance car rental booking by logging on the car rental company’s website and thereafter just picking up the keys of their booked car once they enter a new country/city. They are adventurous, driving enthusiast, belonging to the uppermiddle (40) class, have brand loyalty about their car rental agency. In this self-driven segment, Hertz India is trying to position itself as a contemporary service provider by offering both economy cars and SUV’s (Scorpio and Tata Safari). To win over occasional self-drivers of SUV type cars and frequent travelers. Hertz uses slogans like “Break free” or “Drive the World’s #1” regularly in travel magazines to portrait the quality of its cars, (45) and the range it offers. Third segment consists of instructional consumers, mainly hotels in big cities and air service providers. Institutional consumers prefer quality and service assurance to offer maximum possible service to their customers. In India, all big car rental agencies have contract with start hotels to offer rental service to them. In this segment, Hertz has (50) prominent clienteles like Taj Group of Hotels, Marriott and Jet Airways. Further, they have contract with hotels like Shangrila in Delhi, and Renaissance and JW Marriott in Mumbai to provide all car rental requirements of them. Their other clients are Carlson Wagonlit, BTI Sita, Thomas Cook and online travel sites like Make my trip, India times and Travelgutu. according to their deal with Jet Airways, it allows Jet (55) Privilege members to earn ‘miles’ every time they use Hertz car rental service. for every Rs. 1000/- spent on Hertz rentals, a Jet privilege member earns 100 JP Miles and special discounts are given to platinum, gold and silver card holders. In recent past ‘fleet management’ is coming up a s a possible fourth target segment for car rental companies in India. Word wide cars are not purchased but only leased and (60) this trend is getting its root in Indian market also. It means the management of a fleet of vehicles, using certain tools, to improve operational efficiency and effectiveness. To win over consumers of this segment, services should be professional and a fleet management company should address all the issues a company might deal a\with pertaining to managing its fleet. In India, Lease plan Fleet Management (65) India (LPFM), the wholly-owned subsidiary of Leas plan Corporation, Natherlands is pioneer in this focusing more on car rentals than on fleet management. Though it provides chauffeur-driven cars to many companies like IBM, Sony, KPMG, Compaq, there is a huge scope in this segment for future growth. this segment demands (70) Customized service in terms of vehicle acquisition, fuel management, vehicle financing and maintenance, resale of the cars at the end of the contract period etc.
[1] The primary purpose of this passage is to:
(A) Illustrate how Hertz could plan for the Indian market and maximize profits
(B) Illustrate buying behavior of unorganized sectors offering car rental services
(C) Illustrate segment opportunities for a new entrant in car rental business
(D) Illustrate consumer awareness and views about options available in car-rental business in India.[2] ‘Self-Drive’ concept may be a lucrative option to a manager to true Indian consumers because:
(A) Collectivist culture motivates Indian consumers to opt for self drive
(B) Indian roads encourage consumers to experience joy of long drive
(C) Indians may enjoy driving comfort of SUV as they don’t have capacity to own it
(D) A sizeable number of Indian consumers aspire to enjoy new things in life[3] As a business manager of a car-rental company, you may popularize ‘self-drive’ concept to international travelers because:
(A) they know Indian roads and want to explore new places by their own
(B) They dislike concept of chauffeur as Indian chauffeurs are not every professional
(C) Individualistic culture discourages them to travel in group
(D) They can easily book their cars through website of car rental agencies[4] As a business manager of a globally recognized ‘car-rental’ agency if you like to tap institutional consumers of India, you should not:
(A) Banks on your globally recognized ‘brand name’ to ensure sale
(B) Make a list of your global clientele to impress your prospective consumer
(C) Consider offerings of your competitors to formulate your value proposition
(D) Accept service assurance not as a major influencer behind buying decision[5] As a business manager you think ‘fleet management’ a profitable segment for organized sector to explore in India because:
(A) Companies want to associate with ‘brand name’ and unorganized players are lacking here
(B) Their is a huge scope as competition is low in this filed
(C) Everywhere in India logistics services are outsourced and companies are focusing on their core business
(D) This business demands gamut of customized services and organized professionals may only offer those[6] If you are to tap “first” segment of “car rental” business as a manger of a branded company, you should not:
(A) Advertise your brand name to communicate with consumers
(B) Compare your service conditions vis-a-vis your competitors to influence consumers
(C) Match price of your service with your companies from organized sector
(D) Cerate unique value proposition to position you away from your competitionasked in IIFT
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