XAT 2018 — Decision Making Question 2
Answer the following question based on the information given below.
Satyender heads a branch of a Micro-Finance company. The company provides small-size loans catering to rural households. As the head of the branch, he supervises three collection officers - Palani, Sayed, and Godwin. Palani was recently transferred by the company from another branch. Sayed feared Palani's transfer may pull down the performance of the branch, as he felt Palani was transferred due to his poor performance in the previous branch.
Three months later, Palani submitted local travel bills to Satyender for reimbursement. Satyender realized that the bill amount was 30% higher than expected. Which of the following options, if true, will enable Satyender take a decision that shall set a precedent, which is least likely to be misused in the future?
Answer & solution
- A
Palani being new to the area uses autorickshaws which are more expensive than personal motorcycles used by other collection officers.
- B
Unlike his colleagues, Palani's house has very poor public transport connectivity.
- C
Unlike his colleagues, Palani's sales territory has a powerful competitor.
- D
Unlike his colleagues, Palani's customers can meet him only during weekends.
Unlike his colleagues, Palani has to visit customers repeatedly as they require additional persuasion.
The question implies that Satyender had some bill amount in mind before receiving Palani’s travel bills which were 30% higher than expected. Any option that states that Palani’s bills were reasonable will enable Satyender to approve the same (higher bills) and to take a fair decision that will set a precedent. If Palani has to repeatedly visit customers as they require additional persuasion, it would be obvious that he would be spending more time and money on travelling; approving a higher travel bill in such a situation is justified. Hence, [5] is a fair decision that ensures that a fair precedent will be set. The other options do not offer suitable justifications for the higher travel bill.
Hence, the correct answer is option 5.