Bissoy.com
Doctors Medicines MCQs Q&A

In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Specialty steel and wire ropes maker Usha Martin's decision to sell one of its core businesses - steelmaking - to prune outstanding debt, marks the rare instance of an Indian corporate borrower meeting its loan obligations through divestment. The slump sale is a milestone in the six-decade history of the Kolkata-based company, whose board on Saturday approved the divestment of its one million ton steel business in favor of Tata Steel for Rs 4,600 crore.  Courses of action: I. Proceeds will be used to ‘first repay existing lenders of the company’. Usha Martin will retain a profitable wire ropes unit as residual business, and has plans to scale it up significantly.  II. As part of the transaction, Usha Martin has entered into a five-year deal with The Tatas for sale of steel at market price to the wire-ropes business.  III. Usha Martin is among the top four wire rope players globally. With oil prices going up and strong trend in demand in Europe, the Ebitda in the wire-ropes business has improved. 

In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Specialty steel and wire ropes maker Usha Martin's decision to sell one of its core businesses - steelmaking - to prune outstanding debt, marks the rare instance of an Indian corporate borrower meeting its loan obligations through divestment. The slump sale is a milestone in the six-decade history of the Kolkata-based company, whose board on Saturday approved the divestment of its one million ton steel business in favor of Tata Steel for Rs 4,600 crore.  Courses of action: I. Proceeds will be used to ‘first repay existing lenders of the company’. Usha Martin will retain a profitable wire ropes unit as residual business, and has plans to scale it up significantly.  II. As part of the transaction, Usha Martin has entered into a five-year deal with The Tatas for sale of steel at market price to the wire-ropes business.  III. Usha Martin is among the top four wire rope players globally. With oil prices going up and strong trend in demand in Europe, the Ebitda in the wire-ropes business has improved.  Correct Answer All except III 

A course of action is something thDat needs to be done considering the present scenario in mind. From the statement, it is evident that Specialty steel and wire ropes maker Usha Martin is planning for disinvestment. Thus, the course of action must also be in the same direction, in order to strengthen the flow of ideas.

As a part of the initiative for disinvestment, both I and II can be considered appropriate.

From Course of action I, it is evident that the proceedings will result in repaying of the debts and Usha Martin is planning to scale up the wire ropes unit in order to strengthen the business. As it covers the fact that from the disinvestment, loans will be repaid and thus, will serve the given purpose. Thus, it is in the same context as the given statement.

From Course of action II, it is in the same context as the plans and the transactions occurring as a part of the disinvestment. Thus, it is also relevant.

Course of action III is totally irrelevant as it is a generic statement which states that Usha Martin is a top player in the industry. Moreover, comparison with Ebitda is not in the direction of the disinvestment. Thus, it can be rejected.

Thus, the correct answer is option 4.

Related Questions

In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Top lenders to power projects including State Bank of India, Punjab National Bank, Power Finance Corp and others have agreed to decide the fate of a dozen stressed assets totaling about 13,000 MW by October 10. At a meeting between lenders and top government officials late on Thursday, large lenders explained risks of moving power projects to insolvency court to disagreeing banks, most of which have smaller exposures, and sought to arrive upon a decision before the set deadline. Courses of action: I. Lenders were informed about rising electricity demand and measures being proposed by the high level empowered committee that is working to address issues related to fuel, discom payment delays and regulatory approvals.  II. Banks with lesser exposure to stressed assets in power sector have been asked to come together and decide either to agree with the resolution plan or refer the projects to bankruptcy court rather than dilly-dallying. III. However, if the resolution plans are decided, it can create a favorable ground before the court to salvage at least some of these good operational assets from insolvency proceedings.
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested course of action logically follow (s) for pursuing. Statement: Textiles maker Arvind Ltd. is planning to invest Rs. 500 crore per annum for the next 4-5 years with an aim to double revenue from its textile business to Rs. 12,000 crore. The company is in the process of de-merging its brands and engineering businesses into separate entities.  Courses of action: I. The company is looking dramatic ramp up in garmenting (making garments from fabrics) from 10 per cent at present to 50 per cent over time. A big chunk of this planned investment will be for garmenting. II. The company will be looking at developing 3 large garment clusters in Jharkhand, Andhra Pradesh and Gujarat. Each of these clusters will employ 4,000-8,000 workers.  III. The company is planning to double its textile business from Rs. 6,000 crore to Rs. 12,000 crore in 5 years time. It plans to invest Rs. 500 crore every year for the next five years to expand its textile business.
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Indian Finance Minister Arun Jaitley said on Monday that the government is ready to ensure credit is available to non-banking financial companies (NBFCs), just a day after the market regulator and the central bank sought to calm skittish investors. Jaitley's assurances followed panic selling in the equity market on Friday that pushed the benchmark Nifty Index more than three percent lower in less than 30 minutes. It later recovered to end the day down 0.81 percent.  Courses of action: I. The sell-off was sparked by news that a large fund manager sold short-term bonds issued by Indian NBFC Dewan Housing Finance Corp at a sharp discount, raising fears of wider liquidity problem among NBFCs.  II. Indian equity markets have hit record highs this year despite sell-offs in domestic bonds and weakness in the rupee that has made it Asia's worst-performing currency this year.  III. A sell-off in equity markets, which have been one of the few bright spots in the economy, could further dent Modi's popularity among some of the small business and trading community, a core base of BJP supporters, who were already stung by two of his largest reform moves - demonetization and a nationwide Goods and Services Tax (GST). 
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested courses of action logically follow (s) for pursuing. Statement: With one year to go for 2019 parliamentary elections, Prime Minister Narendra Modi has stepped in to ensure results can be seen on the ground. The Centre has asked states to focus on impactful and public-private-partnership based smart city projects, which would show results over the next one year and have a review mechanism in place. Ministry of housing and urban affairs, the nodal ministry for Smart Cities Mission has identified 261 impactful ventures worth Rs. 31,000 crore and PPP projects worth Rs. 32,000 crore for the states to work on. Courses of Action: I. The move follows directives from the Prime Minister. During a review of Smart Cities mission last week, PM Modi had emphasized on early implementation of projects and suggested that the chief secretaries of all states should review the progress of the implementation. II. These identified projects account for an investment of Rs. 31,112 crore. The states have also been asked to work on 370 PPP projects that involve an investment of Rs. 32,410 crore The impactful projects identified range from building 40 outdoor fitness centres in New Delhi Municipal Council area at a cost of Rs. 1.31 crore to redevelopment of 340 acre area in Bhopal at a cost of Rs. 3,000 crore.  III. Secretary (housing and urban affairs) D. S. Mishra has written to chief secretaries of states and asked them to focus on the belated implementation of smart city projects that have a visible and transformative impact in the lives of citizens in identified smart cities.
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested course of action logically follow (s) for pursuing. Statement: Walmart has been eyeing Indian markets for years now – and its $16 billion worth majority stake in Flipkart has finally given it the opportunity it was looking for to bring its retail business to India. If Walmart were to build its own e-commerce network in the large and diverse Indian market, it would undoubtedly face many challenges. Since, Walmart isn’t an established e-commerce player, the option of growing by way of acquiring is attractive, allowing Walmart to profit from Flipkart’s presence and build on efficiency and scale in e-commerce.  Courses of action: I. Walmart’s leverage will allow the company to globally source cheap resources and sell their products into India at deep discounts. II. To compete with Walmart at competitive prices, sellers will have to operate at the same scale, which will be beyond the reach reach of many.  III. Walmart presently has a very small presence in India and Flipkart’s market share while significant, is not deemed large enough to cause concern to competition.
A statement is given below in the question followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Hindustan Unilever and Nestlé plan to selectively increase prices of their products to take into account higher crude oil and petrol costs, the rupee’s depreciation against the dollar and more expensive commodities such as wheat. If crude remains where it is and if the rupee has depreciated, of course, there are headwinds as far as costs are concerned. I. Nestlé India’s logistics providers are looking to renegotiate rates after record-high petrol and diesel prices. Nestlé declined to comment on when and by how much prices would increase.  II. Nestlé commented that HUL had dropped prices in November after the Goods & Services Tax was introduced last year and an increase in prices now would likely not hurt consumers.  III. Petrol prices have crossed Rs 90 a litre in Mumbai on increasing global prices of crude oil, of which India is a net importer, further impacted by the falling rupee. Crude derivatives, which are key inputs for FMCG companies, and petroleum derivatives used in packaging material including bottles and tubes, have also become more expensive.
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Ikea, the world’s largest furniture retailer with 38 billion euros in annual sales, said the customs duty increase will push up costs in India and could hamper business sentiment. Trade barriers such as import duties are against ideas of a global economy and ease of doing business and will lead to higher costs in India, which is not customer friendly. Ikea said it’s still gauging the impact of the move and wouldn’t be able to comment on whether prices will be raised or not. The Swedish company’s entry marked one of the most significant overseas investments in the country.  Courses of action: I. The company imports, most of the products it sells including tableware, kitchenware and household items made of plastic, and travel bags among other items that are covered by the duty increase announced on Wednesday. Companies have said prices of air-conditioners, premium refrigerators, washing machines, shoes and suitcases will go up by 3-5% while premium imported shoes will be dearer by about 5%.  II. Ikea made its debut in India with its Hyderabad store in August and plans to expand to more locations across the country, keeping prices low as it seeks to appeal to customers in a price sensitive market.  III. India announced duty changes on 19 items including air-conditioners, refrigerators, washing machines, footwear, jewelry, furniture fittings, tableware and ATF to curb the current account deficit and stem the slide in the rupee against the dollar. 
In the question below, a statement is given, followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested course of action logically follow (s) for pursuing. Statement: Led by a strong response to its first super sports utility vehicle Urus, Italian sports car maker Lamborghini is likely to more than double its volumes in India by the end of 2019, a year ahead of its plan, and cross the milestone of 50-60 vehicles per annum. The company, which began deliveries for Urus in India in September, said the vehicle is already booked for the coming six-nine months in India much like the global markets, and it will help Lamborghini get new. customers into its fold. Courses of action: I. The company is planning not to increase the price of its vehicle despite significant rupee depreciation and wants to protect the attractive price of Urus for prospective buyers.  II. The super sports utility vehicle will drive volumes, super sports cars such as Huracan and Aventador will grow by 8-10%. The company feels an 8-10% growth in the segment is a realistic expectation in spite of the challenges.  III. More than 68% of Urus buyers are first-time Lamborghini buyers and makers are sure that this will have a positive rub-off effect on the super sports car segment too.
In the question below, a statement is given followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested course of action logically follow (s) for pursuing. Statement: Tesla and its CEO Elon Musk have agreed to pay a total of $40 million and make a series of concessions to settle a government lawsuit alleging Musk duped investors with misleading statements about a proposed buyout of the company. The settlement with the Securities and Exchange Commission allows Musk to remain CEO of the electric car company but requires him to relinquish his role as chairman for at least three years.  Courses of action: I. Tesla must hire an independent chairman to oversee the company, something that should please a number of shareholders who have criticised Tesla's board for being too beholden to Musk.  II. The deal could remove one cloud that hangs over Tesla. Investors fretted about the company's ability to cope without Musk, a charismatic entrepreneur whose penchant for coming up with revolutionary ideas has drawn comparisons to one of Silicon Valley's most revered visionaries, Apple co-founder Steve Jobs.  III. Besides paying a fine and stripping Musk of his chairman's title, Tesla also must appoint two more directors who have no ties to the company or its management. Musk will be allowed to remain on the board.
In the question below, a passage is given followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Passage: The board of Vedanta Ltd Limited on Monday approved a proposal for delisting of the company and will seek shareholders approval for the process through e-Voting, the company informed the exchanges. The company has proposed to buy 48.9% shares at Rs 87.5 apiece whereas the book value of the company is around Rs. 141 per share. Retail investors hold 7% of the total shares whereas Institutional Investors hold 41.9% of the total shares. Minimum 90% of shareholders should approve the de-listing for it to happen. The scrip closed today at Rs.110, down 4% from the previous close. Courses of action: I. Vedanta must cajole Institutional shareholders to approve the de-listing. II. Institutional Investors must seek a better deal from the company and vote out this proposal as it is below both the market price and book value. III. Retail investors must come together and complain to the exchanges regarding the company’s attempt to force them out of their shares.