Part 2:Reasoning Question Types from other MBA Exams

7.Statement-Courses of Action

Most situations that we face in life throw up the possibility of creating an improvement by following certain courses of action. In fact, deciding on a course of action in a given situation is a primary responsibility in any managerial job.


This question type tests you on your ability to decide on how a situation can be tackled/improved/followed up. Look through the following solved examples to get this question type clear.


Directions: : In each of the following questions a statement is given followed by two courses of action. A course of action is taken for improvement, follow up, etc. Read the statement carefully and give your answer as


(a) If only course of action I follows.

(b) If only course of action II follows.

(c) If both I and II follow.

(d) If neither course of action I nor II follows.


Example 1
Statement

The presence of mafiosi in the education system of UP has increased drastically.

Courses of Action

    I. There should be a special taskforce constituted to clean the system of its ills.

    II. The U.P. government should resign immediately.

Solution

Course of action I follows because it is necessary to tackle such antisocial elements.Course of action II does not follow because the resignation of the government is unlikely to improvethe situation. Hence, option (a) is correct.

Example 2
Statement

In a recent survey by the National Health mission it was showed that fruits and vegetables which contain certain vitamins have a higher effect on human health than capsules marketed by private companies that contain the same vitamins.

Courses of Action

    I. Such vitamin capsules marketed by private companies should be banned with immediate effect.

    II. People should prefer fruits and vegetables to capsules marketed by private companies.

Solution

Course of action I does not follow because we are only making a comparison between the effects of food and vegetables against the effect of capsules. Capsules have just been found to be less effective and it does not mean that they are harmful.

Course of action II follows because fruits and vegetables are preferable to capsules for their positive effect on health. Hence, option (b) is correct.

Example 3
Statement

It has been reported that water level is declining rapidly in India.

Courses of Action

    I. There should be a public campaign to educate people about the need to reduce and eliminate the wastage of water.

    II. New technologies should be researched and utilised to store rain water.

Solution

Both the courses of action are logical steps that could be taken to address the problem. Hence, option (c) is correct

Example 4
Statement

Reliance Telecommunications is playing dirty tricks with its competitor Tata Indicom.

Courses of Action

    I. Tata Indicom should also do the same

    II. Tata Indicom should decrease the tariff rate of phone calls.

Solution

Both the courses of action do not follow. Tata Indicom should not start playing dirty tricks but should approach the government and its regulatory bodies to help. The IInd course of action is also not valid because it will do nothing to stop the dirty tricks. Hence option (d) is correct.

Example 5
Statement

There is a proposal for the Maharashtra government to clear the slum areas in Mumbai for beautification and economic development.

Courses of Action

    I. The Maharashtra Government should compensate the affected persons with reasonable amount.

    II. The Maharashtra Government should stop beautification and economic development work immediately

Solution

Only course of action I follows. Government should take care of affected people. It should pay reasonable amount to affected persons. Second course of action does not follow because it is illogical. Hence, option (a) is correct

EXERCISE

Directions: In each question below is given a statement followed by two courses of action numbered I and II. You have to assume everything in the statement to be true. Then decide which of the two suggested courses of action logically follows for pursuing.

Given Answers:

(a) If only I follows

(b) If only II follows

(c) If both I and II follow

(d) If neither I nor II follows


  1. Statement A sting operation conducted by a TV news channel proved to be a total failure as the reporter who carried out the sting was found to have created a fake sting in order to gain publicity and money.

    2. Courses of Action

      I. Disciplinary action must be initiated immediately against the reporter.

      II. The TV channel should be penalised and taken off air for a short period of time.

    Ans .

    (c) If both I and II follow


    1. Explanation :

      Both the courses of action are logical. Hence, option (c) is correct.


  2. Statement Across the globe there is an increasing tendency to use child soldiers for terrorist activities.

    3. Courses of Action

      I. The United Nations Security Council should try to address this problem by asking its member states to crack down heavily on terrorist groups.

      II. The U.S. led forces must attack such terrorist groups.

    Ans .

    (a) If only I follows


    1. Explanation :

      Only the first course of action is logical in this situation as a crack down on terrorist organisations is the responsibility of every country. US attacking terrorist groups across the world is an infeasible solution. Hence, option (a) is correct


  3. Statement A state-wide bandh called by opposition parties in Bihar led to a total shut down of normal activities of Bihar`s people.

    4. Courses of Action

      I. The government should call a meeting with opposition parties to work out an approach that does not affect the common man

      II. Opposition Parties must continue their agitation.

    Ans .

    (a) If only I follows


    1. Explanation :

      The first course of action follows since it is the responsibility of all parties concerned to ensure that the common man is not affected. The second course of action does not follow as it is opposite what should happen. Hence, option (a) is correct.


  4. Statement There is a shortage of power in India.

    5. Courses of Action

      I. There should be more power projects initiated by the government.

      II. The government should encourage private investment in power projects.

    Ans .

    (c) If both I and II follow


    1. Explanation :

      Both the courses of action follow logically in order to solve the power crisis. Hence, option (c) is correct.


  5. Statement The reduction of the tax rates has led to an increase in the tax collection as there has been higher compliance

    6. Courses of Action

      I. It should be made compulsory every Indian to pay tax.

      II. Tax rates should be further reduced and a further increase in tax collections can be expected on doing so.

    Ans .

    (b) If only II follows


    1. Explanation :

      Only the second course of action fits in. Hence, option (b) is correct.


  6. Statement The number of people who die on the roads every year is so alarming that the numbers every year are close to the numbers which can be attributed to the major diseases of the world.

    7. Courses of Action

      I. There should be an active campaign for sensitising people towards road safety norms

      II. There should be an increased emphasis on enforcing speed limits, road safety rules and traffic management on roads across the world.

    Ans .

    (c) If both I and II follow


    1. Explanation :

      Both courses of action are correct. Hence, option (c) is correct.


  7. Statement In each of the three years from 2000-2002, shareholders of India`s Sensex lost between 15 to 30 per cent of the value of their assets. Yet the average value of the CEO`s package of the 30 companies that formed the Sensex was higher in 2002 than in 2000 by almost 50 per cent.

    8. Courses of Action

      I. Companies should include greater transparency of compensation packages.

      II. If a company is in loss, top executives should not get pay hikes. .

    Ans .

    (c) If both I and II follow


    1. Explanation :

      Both courses of action are correct. Hence, option (c) is correct.


  8. Statement An unacceptable number of children die during the first year of their lives. The high incidence of infant deaths is a major cause for concern for the health ministry

    9. Courses of Action

      I. All government hospitals should be privatised to improve health care facilities.

      II. Governments should commit higher levels of their budget to health services

    Ans .

    (b) If only II follows


    1. Explanation :

      Only the second course of action is logical. Hence, option (b) is correct.


  9. Statement The cream of India`s cricket team is likely to retire in the next three years leaving a vacuum which the Indian cricket team is going to struggle to overcome.

    10. Courses of Action

      I. The BCCI should start to induct youngsters into the team and start to give them exposure to pressure situations.

      II. There should be a rotation policy adopted for senior players in order to prolong their careers and keep them injury free.

    Ans .

    (c) If both I and II follow


    1. Explanation :

      Both courses of action are likely to help the Indian cricket team transit from one generation to the next smoothly. Hence, option (c) is correct.


  10. Statement Amartya arrived an hour late for the examination. The cut off time to enter the exam hall is maximum 15 minutes late.

    11. Courses of Action

      I. A rule is for everyone, so Amartya should not be allowed to enter the exam hall and take the exam

      II. Amartya should be rusticated from his college for violating the rule

    Ans .

    (a) If only I follows


    1. Explanation :

      Only the first course of action is valid. The second is too drastic. Hence, option (a) is correct


  11. Statement Studies of global warming show that the earth could be hotter by at least 6 degreeC in the next 100 years, thanks to huge greenhouse gas emission.

    12. Courses of Action

      I. Since greenhouse gases are responsible for global warming, steps should be taken to control their emission immediately.

      II. All new industries should be immediately stopped from starting to control environmental damage.

    Ans .

    (a) If only I follows


    1. Explanation :

      Only the first course of action is valid. We need to take immediate steps to control the emission of green house gases. The second is too drastic. Hence, option (a) is correct


  12. Statement "New students of our college get frightened by ragging. The ragging prevalent in our college is also creating a bad name for our college"

    13. Courses of Action

      I. The college authorities take stringent action against those who are involved.

      II. A strict anti ragging law should be passed to control ragging in our college

    Ans .

    (c) If both I and II follow


    1. Explanation :

      Obviously we need to control the ragging menace. In such a case both options are correct. Hence, option (c) is the answer.


  13. Statement A lot of unscrupulous and non affiliated colleges have started to lure unsuspecting students by giving attractive advertisements

    14. Courses of Action

      I. Students should make appropriate enquiries while enrolling in any course.

      II. The government should initiate strict action against such college authorities.

    Ans .

    (c) If both I and II follow


    1. Explanation :

      Both the courses of action are logical and recommended in the given situation. Hence, option (c) is correct.


  14. Statement Higher education in America is very expensive. This is perhaps because more and more graduates from across the world try to go to America for higher education

    15. Courses of Action

      I. The American government should stop such migration of students from other countries.

      II. The American government should clamp down heavily on such institutions and universities which charge high for higher education.

    Ans .

    (d) If neither I nor II follows


    1. Explanation :

      Neither of the two courses of action are valid since the government should just allow the market economics to prosper. Hence, (d) is the correct option.


  15. Statement The lives of millions of people are likely to be endangered in the future as thousands of active landmines are still undiscovered in the fields of Africa

    16. Courses of Action

      I. The International community should immediately take action so that no more landmines are laid down across the world.

      II. It should be an offence against all humanitarian norms to continue using these landmines

    Ans .

    (c) If both I and II follow


    1. Explanation :

      Both the courses of action are valid logically. Hence, option (c) is correct.


  16. Statement There is an alarming and increasing trend of engineering and technical graduates to opt for jobs rather than doing research.

    17. Courses of Action

      I. Universities must make research in engineering subjects more attractive

      II. It should be made compulsory to pursue research after an engineering degree

    Ans .

    (a) If only I follows


    1. Explanation :

      Only course of action I is correct. Hence, option (a) is correct


  17. Statement t The colony has suffered major thefts and break-ins due to lax security systems

    18. Courses of Action

      I. Security should be strengthened in the colony.

      II. Residents and regular visitors and their vehicles should be provided with identity cards and stickers for better control of who is coming and going into the colony .

    Ans .

    (c) If both I and II follow


    1. Explanation :

      Both courses of action are logical and would help in the improvement of security in the colony. Hence, option (c) is the answer


  18. Statement The lack of employment and income during economic depression leads to an increase in the crime rates.

    19. Courses of Action

      I. The government should provide an unemployment compensation as done in advanced countries

      II. The government should encourage greater economic activity and increase the number of industries in order to reduce crime rates.

    Ans .

    (c) If both I and II follow


    1. Explanation :

      Both the courses of action are valid. Hence, option (c) is correct


  19. Statement The appreciation of the rupee has reduced the impact of the oil price rise on the Indian economy although it has also created a problem for exporters

    20. Courses of Action

      I. The government should allow a further rise in the value of the rupee

      II. The government should provide some additional incentives to exporters

    Ans .

    (b) If only II follows


    1. Explanation :

      The first course of action will further affect exporters and will make Indian exports unviable in the international markets. Providing some support to exporters at this juncture might be a good idea since it will have to improve the position of Indian exporters which has been jolted by the rupee appreciation. Hence, option (b) is correct


  20. Statement The U.S. and its allies have been claiming that Iran is developing dangerous chemical, biological and nuclear weapons.

    21. Courses of Action

      I. The international community should boycott Iran

      II. The U.S. should wage war against Iran just as it did against Iraq a few years ago.

    Ans .

    (d) If neither I nor II follows


    1. Explanation :

      Neither course of action is logical because both are too drastic just on the basis of claims made by one party against the other. Hence, option (d) is correct.


  21. Statement Fordon Motors has found that its managerial manpower is not efficient.

    22. Courses of Action

      I. It should fire all its managers.

      II. It should organise training programs for its managers

    Ans .

    (b) If only II follows


    1. Explanation :

      Course of action II is logically correct as training is likely to improve the efficiency of the managers. Firing all the managers is illogical and likely to be counterproductive. Hence, option (b) is correct.


  22. Statement The TV channel Kal Tak has shown a video recording of some policemen taking bribes from car drivers.

    23. Courses of Action

      I. The cops should be suspended after an inquiry

      II. The guilty cops should be warned for future

    Ans .

    (a) If only I follows


    1. Explanation :

      Course of action I follows, II does not. Hence, option (a) is the answer


  23. Statement The Maharashtra State Electricity Board has been unable to provide 24 hours electricity leading to tremendous economic loss.

    24. Courses of Action

      I. The Government must provide for increasing electricity consumption

      II. The government should check the electricity theft cases.

    Ans .

    (a) If only I follows


    1. Explanation :

      Only course of action I follows as the government must make provisions to increase the generation of power. However the course of action II does not follow because the government cannot be expected to check electricity theft cases since that is the work of the Electricity Board and not the government. Hence, option (a) is the answer.


  24. Statement The flood relief sanctioned for the purpose never reached the intended beneficiaries

    25. Courses of Action

      I. Those who are responsible should be checked and suspended

      II. The Government of India should resign taking moral responsibility for the same

    Ans .

    (a) If only I follows


    1. Explanation :

      Course of action I is logical. Hence, option (a) is the answer.


  25. Statement It has been observed that commercial banks refrain from giving loans to people from poor backgrounds because they cannot provide assets for security.

    26. Courses of Action

      I. The finance ministry must look into the matter immediately

      II. The finance minister should initiate an enquiry into the matter.

    Ans .

    (c) If both I and II follow


    1. Explanation :

      Both the courses of action are logical. Option (c) is correct.



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