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Dicision Making Test - 10

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Dicision Making Test - 10
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  • Question 1
    4 / -1

    Directions For Questions

    Direction: Read the following and select the appropriate answers.

    Veer Pratap Singh wishes to set-up a holiday resort in a remote location in Uttranchal. Currently, this area of the state is unexplored and virgin, and he wishes to set-up a cluster of 15 holiday huts that can be rented by couples or families in order to enjoy a peaceful vacation. He plans to offer huts with the optional facility of either cooking their own food (raw vegetables and the necessary utilities would be made available) or hiring a cook from the establishment. Also, a number of treks and excursions in the neighboring areas are planned by Veer Pratap and these can also be booked by the families. Veer Pratap plans to fund the development of this project with the help of his own savings, investments from his friends and a loan from the bank. The bank loan would stand around 30% of the estimated cost of the project. The land for the project belongs to Veer Pratap and is part of his inheritance.

    Since this part of the state is still relatively untouched by development, the accessibility of this area is an issue and the transport facilities in the area are not that developed. The road network exists only till the last major city, which is 30 kilometers from the location of the resort. The surrounding villages use a temporary network of roads for their own purposes, and catch buses also from the city 30 kms away. Since the people in the region do not own any vehicles of their own, they are able to get by with the use of age-old modes of transportation (such as mules and horses). Also, this part of the state is cut-off for three winter months due to excessive snowfall and no travelling is possible for these months. For the remainder of the year, the area offers almost the perfect vacation and is surrounded by a valley of flowers, scenic beauty, rivers and multiple treks.

    Considering the situation, Veer Pratap took up the issue of the development of transport facilities in the region with the local authorities and tried to convince them of the need to development of roads in the region. The authorities did not yield to his requests as the resources of the state are currently being used to develop regions and areas that offer commercial and industrial gains to the state.

    Also, considering the virgin nature of the environment, any major private project for profit in the region needs an environmental clearance. In general, such a clearance can take up to two years and involves considerable groundwork. A feasibility report also needs to be developed with the help of experts to establish that the given project does not harm the environment in unalterable ways.

    ...view full instructions


    Should Veer Pratap still consider doing business?

    Solution

    In the given case, Veer Pratap should definitely go ahead with his idea but should keep in mind that considering the obstacles, the business won't be set up in the short term and he needs to adopt a long term horizon for the same. Also, since the land is owned by him, he does not incur any costs for holding the land and thus, he can adopt a long term vision for the region.

  • Question 2
    4 / -1

    Directions For Questions

    Direction: Read the following and select the appropriate answers.

    Veer Pratap Singh wishes to set-up a holiday resort in a remote location in Uttranchal. Currently, this area of the state is unexplored and virgin, and he wishes to set-up a cluster of 15 holiday huts that can be rented by couples or families in order to enjoy a peaceful vacation. He plans to offer huts with the optional facility of either cooking their own food (raw vegetables and the necessary utilities would be made available) or hiring a cook from the establishment. Also, a number of treks and excursions in the neighboring areas are planned by Veer Pratap and these can also be booked by the families. Veer Pratap plans to fund the development of this project with the help of his own savings, investments from his friends and a loan from the bank. The bank loan would stand around 30% of the estimated cost of the project. The land for the project belongs to Veer Pratap and is part of his inheritance.

    Since this part of the state is still relatively untouched by development, the accessibility of this area is an issue and the transport facilities in the area are not that developed. The road network exists only till the last major city, which is 30 kilometers from the location of the resort. The surrounding villages use a temporary network of roads for their own purposes, and catch buses also from the city 30 kms away. Since the people in the region do not own any vehicles of their own, they are able to get by with the use of age-old modes of transportation (such as mules and horses). Also, this part of the state is cut-off for three winter months due to excessive snowfall and no travelling is possible for these months. For the remainder of the year, the area offers almost the perfect vacation and is surrounded by a valley of flowers, scenic beauty, rivers and multiple treks.

    Considering the situation, Veer Pratap took up the issue of the development of transport facilities in the region with the local authorities and tried to convince them of the need to development of roads in the region. The authorities did not yield to his requests as the resources of the state are currently being used to develop regions and areas that offer commercial and industrial gains to the state.

    Also, considering the virgin nature of the environment, any major private project for profit in the region needs an environmental clearance. In general, such a clearance can take up to two years and involves considerable groundwork. A feasibility report also needs to be developed with the help of experts to establish that the given project does not harm the environment in unalterable ways.

    ...view full instructions

    According to the information provided in the paragraph, in terms of significance, the most important factor the development of the project is:

     

    I. the feasibility report and the environmental clearance.

    II. the development of transport facilities.

    III. the arrangement of funds for the projects

    Solution

    In the given case, look at the answer options and understand that the question is forcing you to make a choice between these alternatives. The question does not allow you to select all three and you are supposed to pick at max 2 of the given choices. In this case, we select two which are the primary focus of the paragraph: I and II. Remember, the paragraph clearly states how the money can be arranged for the project and does not list it as a problem, whereas it lists the other two points as definite issues faced by project.

  • Question 3
    4 / -1

    Directions For Questions

    Direction: Read the following and select the appropriate answers.

    Veer Pratap Singh wishes to set-up a holiday resort in a remote location in Uttranchal. Currently, this area of the state is unexplored and virgin, and he wishes to set-up a cluster of 15 holiday huts that can be rented by couples or families in order to enjoy a peaceful vacation. He plans to offer huts with the optional facility of either cooking their own food (raw vegetables and the necessary utilities would be made available) or hiring a cook from the establishment. Also, a number of treks and excursions in the neighboring areas are planned by Veer Pratap and these can also be booked by the families. Veer Pratap plans to fund the development of this project with the help of his own savings, investments from his friends and a loan from the bank. The bank loan would stand around 30% of the estimated cost of the project. The land for the project belongs to Veer Pratap and is part of his inheritance.

    Since this part of the state is still relatively untouched by development, the accessibility of this area is an issue and the transport facilities in the area are not that developed. The road network exists only till the last major city, which is 30 kilometers from the location of the resort. The surrounding villages use a temporary network of roads for their own purposes, and catch buses also from the city 30 kms away. Since the people in the region do not own any vehicles of their own, they are able to get by with the use of age-old modes of transportation (such as mules and horses). Also, this part of the state is cut-off for three winter months due to excessive snowfall and no travelling is possible for these months. For the remainder of the year, the area offers almost the perfect vacation and is surrounded by a valley of flowers, scenic beauty, rivers and multiple treks.

    Considering the situation, Veer Pratap took up the issue of the development of transport facilities in the region with the local authorities and tried to convince them of the need to development of roads in the region. The authorities did not yield to his requests as the resources of the state are currently being used to develop regions and areas that offer commercial and industrial gains to the state.

    Also, considering the virgin nature of the environment, any major private project for profit in the region needs an environmental clearance. In general, such a clearance can take up to two years and involves considerable groundwork. A feasibility report also needs to be developed with the help of experts to establish that the given project does not harm the environment in unalterable ways.

    ...view full instructions

    How does Veer Pratap ensure that he gets an environmental clearance?

    Solution

    In the given case, remember you need to pick an option that that answers the question: How does Veer Pratap ensure that he gets an environmental clearance?

    Options 1 and 2 are unethical courses of action and hence rejected.

    Option 5 is rejected as it does not talk about the environmental clearance, rather it talks about cancelling the project.

    Option 3 does not guarantee environmental protection and is ruled out.

    Only option 4 guarantees environmental protection and thus, if that is case, can ensure that he gets the required clearance.

  • Question 4
    4 / -1

    Directions For Questions

    Direction: Read the following and select the appropriate answers.

    Veer Pratap Singh wishes to set-up a holiday resort in a remote location in Uttranchal. Currently, this area of the state is unexplored and virgin, and he wishes to set-up a cluster of 15 holiday huts that can be rented by couples or families in order to enjoy a peaceful vacation. He plans to offer huts with the optional facility of either cooking their own food (raw vegetables and the necessary utilities would be made available) or hiring a cook from the establishment. Also, a number of treks and excursions in the neighboring areas are planned by Veer Pratap and these can also be booked by the families. Veer Pratap plans to fund the development of this project with the help of his own savings, investments from his friends and a loan from the bank. The bank loan would stand around 30% of the estimated cost of the project. The land for the project belongs to Veer Pratap and is part of his inheritance.

    Since this part of the state is still relatively untouched by development, the accessibility of this area is an issue and the transport facilities in the area are not that developed. The road network exists only till the last major city, which is 30 kilometers from the location of the resort. The surrounding villages use a temporary network of roads for their own purposes, and catch buses also from the city 30 kms away. Since the people in the region do not own any vehicles of their own, they are able to get by with the use of age-old modes of transportation (such as mules and horses). Also, this part of the state is cut-off for three winter months due to excessive snowfall and no travelling is possible for these months. For the remainder of the year, the area offers almost the perfect vacation and is surrounded by a valley of flowers, scenic beauty, rivers and multiple treks.

    Considering the situation, Veer Pratap took up the issue of the development of transport facilities in the region with the local authorities and tried to convince them of the need to development of roads in the region. The authorities did not yield to his requests as the resources of the state are currently being used to develop regions and areas that offer commercial and industrial gains to the state.

    Also, considering the virgin nature of the environment, any major private project for profit in the region needs an environmental clearance. In general, such a clearance can take up to two years and involves considerable groundwork. A feasibility report also needs to be developed with the help of experts to establish that the given project does not harm the environment in unalterable ways.

    ...view full instructions

    How should Veer Pratap solve the problem of lack of transportation in the region?

     

    Solution

    In the given case, remember the basic precepts for answering the question:

    1. you cannot adopt unethical means for a given situation: this helps us rule out option 2.

    2. focus on the question and do not select an answer option that deviates from the question itself: option 3 deviates from the question and talks about shifting the project, whereas our concern is the development of transport facilities in the region.

    3. do not select answer options are unfeasible, impractical or not assured of success: options 1 and 4 represent such options.

    By elimination, we arrive at the one answer (option 5) which is logical and consistent with the information provided in the paragraph. The solution suggested by the given option solves the problems of the local residents, improves the overall quality of life and helps Veer Pratap as well. Overall, it offers the highest sum-total benefits for all stakeholders (the most significant aspect for a decision making question).

  • Question 5
    4 / -1

    Directions For Questions

    Direction: Read the following and select the appropriate answers.

    Veer Pratap Singh wishes to set-up a holiday resort in a remote location in Uttranchal. Currently, this area of the state is unexplored and virgin, and he wishes to set-up a cluster of 15 holiday huts that can be rented by couples or families in order to enjoy a peaceful vacation. He plans to offer huts with the optional facility of either cooking their own food (raw vegetables and the necessary utilities would be made available) or hiring a cook from the establishment. Also, a number of treks and excursions in the neighboring areas are planned by Veer Pratap and these can also be booked by the families. Veer Pratap plans to fund the development of this project with the help of his own savings, investments from his friends and a loan from the bank. The bank loan would stand around 30% of the estimated cost of the project. The land for the project belongs to Veer Pratap and is part of his inheritance.

    Since this part of the state is still relatively untouched by development, the accessibility of this area is an issue and the transport facilities in the area are not that developed. The road network exists only till the last major city, which is 30 kilometers from the location of the resort. The surrounding villages use a temporary network of roads for their own purposes, and catch buses also from the city 30 kms away. Since the people in the region do not own any vehicles of their own, they are able to get by with the use of age-old modes of transportation (such as mules and horses). Also, this part of the state is cut-off for three winter months due to excessive snowfall and no travelling is possible for these months. For the remainder of the year, the area offers almost the perfect vacation and is surrounded by a valley of flowers, scenic beauty, rivers and multiple treks.

    Considering the situation, Veer Pratap took up the issue of the development of transport facilities in the region with the local authorities and tried to convince them of the need to development of roads in the region. The authorities did not yield to his requests as the resources of the state are currently being used to develop regions and areas that offer commercial and industrial gains to the state.

    Also, considering the virgin nature of the environment, any major private project for profit in the region needs an environmental clearance. In general, such a clearance can take up to two years and involves considerable groundwork. A feasibility report also needs to be developed with the help of experts to establish that the given project does not harm the environment in unalterable ways.

    ...view full instructions

    Considering the long-term obstacles involved in the development of the project, what should Veer Pratap do?

     

    Solution

    In the given case, let's eliminate the options that are illogical:

    Option 1: the project needs at least all approvals before promotions.

    Option 2: ruled out as the focus is this project.

    Option 3: would mean the project gets developed over too long a period of time.

    Option 5: seems tempting but the question does not state that the area is inaccessible, it's just that it has to be accessed through age-old ways.

    Option 4 is the best choice in the given case as it highlights how the situation can be handled best and the project developed in the shortest time possible.

  • Question 6
    4 / -1

    Directions For Questions

    Direction: Read the information below and answer the questions that follow.

    In the last three years, Vidharbha has seen three consecutive droughts. Also, the prediction for this year is not too good. Because of the droughts in the last three years, the cotton farming in the region stands destroyed and the region has seen a very high number of farmer suicides. Keeping the current weather forecast in mind, the trend is expected to continue this year as well, and the farmers are already gearing up for the worst. Considering the situation, the state government has decided to form a task force to deal with the situation and has also asked the central government for a relief package for the farmers. The farmers believe that these measures are simply meant to paper over their problems and just the last three years, no actual relief would be delivered to them.

    ...view full instructions

    Considering the delicate situation in Vidarbha, the state agriculture minister is under pressure to come up with a solution for the problem. Which, out of the following, is the best course of action for the minister to adopt?

    Solution

    In the given case, the concern of the farmers is that these measures did not work in the previous year. Considering that these measures failed last year, what is it that should be done by the agricultural minister? He should have the blueprint ready for how to handle the situation in the worst possible scenario, that is when these measures don't work. The other options simply talk about reinforcing these measures, whereas the question presents evidence that there might be a chance that these measures might now work. So keeping that in mind, the minister should have an alternate course of action ready.

  • Question 7
    4 / -1

    Directions For Questions

    Direction: Read the information below and answer the questions that follow.

    In the last three years, Vidharbha has seen three consecutive droughts. Also, the prediction for this year is not too good. Because of the droughts in the last three years, the cotton farming in the region stands destroyed and the region has seen a very high number of farmer suicides. Keeping the current weather forecast in mind, the trend is expected to continue this year as well, and the farmers are already gearing up for the worst. Considering the situation, the state government has decided to form a task force to deal with the situation and has also asked the central government for a relief package for the farmers. The farmers believe that these measures are simply meant to paper over their problems and just the last three years, no actual relief would be delivered to them.

    ...view full instructions

    Considering the drought prone nature of the region, what could be a long term solution that the state government can adopt for the farmers of the region?

    Solution

    In the given case, options 1 and 2 are rejected they do not keep in mind the feasibility of commercial/industrial ventures in the region. It may be so that it is not possible to set-up industries in this region. On the other hand, option 4 is a temporary solution whereas the question wants a long-term fix. Option 3 is the perfect choice as it solves the problem of the farmers in the long term.

  • Question 8
    4 / -1

    Directions For Questions

    Direction: Read the information below and answer the questions that follow.

    The current administration in the city has decided to build a flyover in the city-centre that is going to link its two opposite ends. The 500 mtr. flyover will essentially help citizens to cross from one portion of the shopping area to another without being tangled in the congestion, and beneath the flyover, the administration plans to build walkways so that people can cross over without any difficulty. The opponents to the flyover claim that this is just a superficial exercise and no real purpose is achieved by this exercise, as the flyover is simply being replaced by walkways, and the environmental cost of the building this flyover amounts to the cutting of more than 300 trees.

    ...view full instructions

    In the given situation, what should be done by the administration?

    Solution

    Given the nature of debate surrounding the project, the best approach for the local administration at this stage is to get an independent feasibility report for the project. By adopting such an approach, they will be able to check whether the flyover should be built and whether it has actual benefits or not. It is the only option which adopts a logical and pragmatic approach for the situation, and is thus the correct answer. The other options are lopsided solutions that take only one side into consideration. Also, option 4 is ruled out as in comparison to option 5, it does not offer a scientific rationale for the construction of the flyover.

  • Question 9
    4 / -1

    Directions For Questions

    Direction: Read the information below and answer the questions that follow.

    The current administration in the city has decided to build a flyover in the city-centre that is going to link its two opposite ends. The 500 mtr. flyover will essentially help citizens to cross from one portion of the shopping area to another without being tangled in the congestion, and beneath the flyover, the administration plans to build walkways so that people can cross over without any difficulty. The opponents to the flyover claim that this is just a superficial exercise and no real purpose is achieved by this exercise, as the flyover is simply being replaced by walkways, and the environmental cost of the building this flyover amounts to the cutting of more than 300 trees.

    ...view full instructions

    If the opponents to the flyover need to strengthen their case, they need to:

    I. Propose alternate solutions to flyover and how the same ends can be achieved without its construction.

    II. Take up protest rallies against the administration and prevent them from carrying out their daily duties.

    III. Run citizen awareness camps and make city residents of the possible ways to avoid the flyover.

    Solution

    In the given case, statements I and II actually work in conjunction. You can see that both are positive steps that involve making the administration as well as the city residents aware of the problem. Statement II is ruled out as it adopts a confrontational approach and actually does not help in solving in the problem at hand. It only deviates from the existing issue at hand and creates other law and order issues for the city.

  • Question 10
    4 / -1

    Directions For Questions

    Direction: Read the following and select the appropriate answers.

    The new Government of India (GOI henceforth in the question) has envisaged an aggressive development strategy for the country, and under this strategy, it plans to push the 'Make in India' policy. For this, it plans to set up a 100 special economic zones in the country that will offer special tax benefits to companies and promote manufacturing in the style China does. These special economic zones will have special provisions for energy (one of the most significant factors in industrial development), will keep in mind the housing requirements for the workers and manpower required to run these zones, and will be well connected with major cities and ports.

    The plan envisaged by the GOI is an extremely aggressive one and it wishes to develop these 100 zones in the next 10 years. Even though the intentions behind the project are extremely good, the implementation of the project involves a number of significant hurdlers.

    The first and foremost hurdle is the land requirement for such zones. Not only huge pieces of land are required but the location of these pieces is extremely vital as well. Considering the current shortage of land in the country, the only option that the government has is the conversion of some of the agricultural land for industrial use. This in itself poses two problems: one is impact on agricultural productivity in the country and the second is the resettlement of farmers who are earning their livelihood from their current practices.

    The second challenge to the development of SEZs is the power shortage in the country. Currently, more than 75% of the power supplied to the industrial sector is manufactured using coal. This in itself poses a huge challenge as coal is a non-renewable source of energy and going by current estimates, its supply is estimated to last another 50 years only. Considering this, the establishment of SEZs not only implies the creation of these zones and acquisition of land but also requires extensive development of the power sector.

    The third challenge to the development of SEZs is the requirement of the transport facilities for these zones. The government will effectively need to create a new set of national highways and extensive transport facilities in order to ensure that these zones function effectively. This is again a complete project in itself and has huge implications for GOI.

    ...view full instructions

    In the given scenario, GOI should

    Solution

    In the given scenario, the GOI needs to start the project (as it is immense positives) yet it needs to keep the considerations in mind. How is it feasible to start a project with major handicaps? One should work on the aspects that at least allow the project to start and then can overcome other hurdles one at a time. This course of action is best reflected by option 4, which talks about starting the easiest of the SEZs and thus implying that the gains spread to other ones as time goes on.

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