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CAT 2002 — QA Question 59

Data SufficiencyEasy

Each question given below is followed by five statements numbered I, II, III, IV and V. The answer choice given below each question consists of one or more statements. You have to choose the choice which gives more relevant / useful information in answering the question correctly. Read all the statements together with the question and choose your answer

What were the possible reasons due to which DESCO incurred losses for the last two years?

Statement:

I. The company's shares are not registered in the stock exchange.
II. The company does not export its products.
III. The company has an inefficient labour force.
IV. The price of its product has fallen in the last two years due to competitive market.
V. Entry of similar foreign goods at a cheaper rate.

Answer & solution

Correct answer: Only III, IV and V

  • Only III, IV and V

  • B

    Only II, III and IV

  • C

    Only IV and V

  • D

    Only I and II

Solution

Inefficient labour forces, fall in product price, and entry of similar foreign goods at lower rates are the possible reasons for incurring losses by DESCO.

Hence, option (a).

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CAT 2002 QA Q59: Each question given below is followed by five statements numbered I, II, III, IV and V. The answer choice give — Solution | TheCATExam