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CAT 2018 Slot 2 — VARC Question 34

Mixed PracticeEasy

The four sentences (labelled 1, 2, 3, and 4) given in this question, when properly sequenced, form a coherent paragraph. Decide on the proper order for the sentences and key in this sequence of four numbers as your answer.

  1. It was his taxpayers who had to shell out as much as $1.6bn over 10 years to employees of failed companies.
  2. Companies in many countries routinely engage in such activities which means that the employees are left with unpaid entitlements
  3. Deliberate and systematic liquidation of a company to avoid liabilities and then restarting the business is called phoenixing.
  4. The Australian Minister for Revenue and Services discovered in an audit that phoenixing had cost the Australian economy between 2.9bnand2.9bn and5.1bn last year.

Answer & solution

Correct answer: 3241

Answer: 3241

Solution

Easy

Para-jumble: move from the general definition to the specific example. Two sentences (3, 2) speak generally about "phoenixing"; two (4, 1) give the Australian case. A definition almost always opens, and "his taxpayers" must follow a sentence that introduces the official it refers to.

1

Opener = 3. Sentence 3 defines the key term: "Deliberate and systematic liquidation of a company to avoid liabilities and then restarting the business is called phoenixing." A definition of the topic word is the natural starting point.

2

3 → 2. Sentence 2 generalises the practice — "Companies in many countries routinely engage in such activities … employees are left with unpaid entitlements." "Such activities" refers straight back to the phoenixing just defined in 3.

3

2 → 4 → 1. The passage now narrows to a concrete case. Sentence 4 introduces "The Australian Minister for Revenue and Services" and the cost to the economy. Sentence 1 then closes with the consequence — "It was his taxpayers who had to shell out as much as $1.6bn …". The pronoun "his" must point back to the Minister named in 4, locking the 4→1 order.

4

Assemble. Definition (3) → general effect (2) → specific country/figure (4) → taxpayer fallout (1). Sequence: 3 – 2 – 4 – 1.

Correct sequence: 3241

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CAT 2018 Slot 2 VARC Q34: The four sentences (labelled 1, 2, 3, and 4) given in this question, when properly sequenced, form a coherent — Solution | TheCATExam