CAT 2018 Slot 2 Question 30

Question 30

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 $2.9bn and $5.1bn last year.


Correct Answer: 3241

Solution

3 should be the opening sentence since it introduces the concept of phoenixing. Sentence 2 logically continues sentence 1 by stating that companies in many countries engage in such activities (Phoenixing). Sentence 2 should be followed by sentence 4 since it moves to a specific instance (Australian minister's discovery) from general statements. Sentence 1 should follow sentence 4 since it states that it was 'his' taxpayers (Australian Minister's taxpayers or Australian citizens) who had to foot the bill. 

Sentences 3241 form a coherent paragraph. Therefore, 3241 is the correct answer. 


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