Cause and Effect Questions for IIFT PDF

Cause and Effect Questions for IIFT PDF
Cause and Effect Questions for IIFT PDF

Cause and Effect Questions for IIFT PDF

Download important IIFT Cause and Effect Questions PDF based on previously asked questions in IIFT and other MBA exams. Practice Cause and Effect Questions and answers for IIFT and other  exams.

Download Cause and Effect Questions for IIFT PDF

Get Complete MBA Test Series for Rs. 799

Download IIFT Previous Papers PDF


In each question given below, a statement is followed by three courses of action numbered 1, 2 and 3. You have to assume everything in the statement to be true, and then decide which of the three suggested courses of action logically follow(s).

Question 1: 

Statement: School dropout rate is very high in the rural areas as children support their parents in income earning activities.
Courses of action:
i. Public awareness programme on primary education should be expanded immediately to educate parents.
ii. Compensation should be given to those parents whose children are in the school.
iii. Law on universal education and ban on child labour should be made rigorous.

a) Only (i) and (ii) follow

b) Only (ii) and (iii) follow

c) Only (i) and (iii) follow

d) All follow

Question 2: 

Statement: In a recent bulletin the Meteorological Department of India has forecasted severe drought in next cropping season which may cause failure of crops.
Courses of action:
i. The forecast should be widely published in media.
ii. The drought relief team should be ready for relief work.
iii. The people should be advised to go for drought resistant variety.

a) Only (i) and (ii) follow

b) Only (ii) follows

c) Only (ii) and (iii) follow

d) None of the above


Answer questions 36-38 on the basis of information given in the following situation.

Ava is the CEO of Ratan Brothers, a bicycle manufacturing company. The organization is doing well financially, with a steadily increasing share price. Recently, Ava promoted Bhushan, her nephew, to the position of head of procurement after he completed five years in the organization. After the promotion, he was automatically inducted into the quality council headed by Ava.

Dev and Sons is a supplier to Ratan Brothers. It supplies “ball bearings”, an important part of any bicycle. After Bhushan took over, he switched to a new supplier citing quality deficiencies in Dev and Sons’ product. Dev and Sons responded by publicly declaring that quality was not compromised. Further, it alleged that its competitor bribed Bhushan to get the contract.

Question 3: 

Post this public allegation, the share price of Ratan Brothers started falling.
Which of the following is the best option for Ava to immediately stem the falling stock prices?

a) Fire Bhushan, blacklist Dev and Sons and inform the press.

b) Issue a press statement that a committee has been formed to look into the matter.

c) Issue a press statement that the company’s quality standards have increased and that anyone is welcome to scrutinize the relevant documents.

d) Cancel the remaining order and call for a fresh tender.

e) Do nothing, as Bhushan, as the head of procurement, has the right to decide on the supplier.

Question 4: 

Under pressure from media and suppliers, Ava constituted a cross-functional committee of senior executives to investigate Dev and Sons’ allegation against Bhushan. The committee exonerated Bhushan. However, rumors within the organization began to spread that the decision was influenced by nepotism.
Which of the following should be the best response from Ava?

a) Do nothing, as the committee has exonerated Bhushan.

b) Force Bhushan to resign temporarily. Make an independent enquiry, if found innocent, reinstate Bhushan.

c) Communicate to all shareholders that these kinds of practices are very common in organizations.

d) Sack all those employees who questioned the authority of Ava.

e) Explain in a town hall meeting, open to all the employees, how the decision to exonerate Bhushan was taken.

Question 5: 

A few months after the issue of Dev and Sons, a vigilance committee discovered some financial irregularities attributable to Bhushan in his earlier stint as a senior manager in marketing. The board of directors was concerned about this and demanded a response from the CEO.
Ava contemplated following responses:
1. Offer to resign from the post of CEO, since as the CEO she is ultimately responsible for everything in the organization.
2. Sack Bhushan immediately and make the reason public.
3. Have a town hall meeting with all the employees and deny any financial irregularities in the organization.
4. Communicate to the board that as the CEO, the organization’s financial health is her top priority, on which she has delivered stellar performance in the last five years.
5. Inform the board that Bhushan was promoted because his initiatives helped the company immensely.
Which of the following sequence of actions is the most appropriate for Ava?

a) 5,2,1

b) 5,4,3

c) 1,2,3

d) 2,1,4

e) 3,4,1

IIFT Free Mock Test

Question 6: 

The offer of the government to make iodised salt available at a low price of one rupee per kilo is welcome, especially since the government seems to be so concerned about the ill effects of non-iodised salt. But it is doubtful whether the offer will actually be implemented. Way back in 1994, the government, in an earlier effort, had prepared reports outlining three new and simple but experimental methods for reducing the costs of iodisation to about five paise per kilo. But these reports have remained just those — reports on paper.
Which one of the following, if true, most weakens the author’s contention that it is doubtful whether the offer will be actually implemented?

a) The government proposes to save on costs by using the three methods it has already devised for iodisation.

b) The chain of fair-price distribution outlets now covers all the districts of the state.

c) Many small-scale and joint-sector units have completed trials to use the three iodisation methods for regular production.

d) The government which initiated the earlier effort is in place even today and has more information on the effects of non-iodised salt.

Question 7: 

In order to ease the traffic congestion, the transport planners decided to have a sophisticated system of elevated monorail travel in the city. However, it was pointed out by somebody that a metro rail system would be a more effective solution to the traffic problem. The plan was thus stalled. Moreover, since a budget had not been drawn up for the project, it was deemed fit to stall the work of the monorail for some time. In the meanwhile, the traffic planners of the city decided to build an efficient system of subways and flyovers in the city with the aim of easing the same problem. At the instant when the planners were preparing to award the contracts to the concerned parties, the transport planners came up with the contention that the subways interfered with the site of a pillar of the monorail system. The traffic planners had to give up the idea and think of other possible solutions.
Which of the following can we infer from the above passage?

a) The city authorities felt that the monorail system was essentially impractical.

b) There is a strong contention between the two groups of planners in the city.

c) The projects would be stalled for an indefinite period.

d) None of these

Question 8: 

The effect produced on the mind by travelling depends entirely on the mind of the traveller and on the way in which he conducts himself. The chief idea of one very common type of traveller is to see as many objects of interest as he possibly can. If he can only after his return home say that he has seen such and such temple, castle, picture gallery, or museum, he is perfectly satisfied. Far different is the effect of travels upon those who leave their country with a mind prepared by culture to feel intelligent admiration for all the beauties of nature and art to be found in foreign lands. When they visit a new place, instead of hurrying from temple to museum to picture gallery, they allow the spirit of the place to sink into their minds, and only visit such monuments as the time they have at their disposal allows them to contemplate without irreverent haste. It can be inferred from the above passage that

a) the writer prefers the second type of traveller.

b) the first type of traveller is the lay traveller who does not understand the worth of any place he travels to.

c) the objective of the second type of traveller is not to see much, but to see well.

d) All of these

Question 9: 

According to McNeill, a Brahmin priest was expected to be able to recite at least one of the Vedas. The practice was essential for several centuries when the Vedas had not yet been written down. It must have had a selective effect, since priests would have been recruited from those able or willing to memorize long passages. It must have helped in the dissemination of the work, since a memorized passage can be duplicated many times.Which one of the following can be inferred from the above passage?

a) Reciting the Vedas was a Brahmin’s obligation.

b) The Vedic priest was like a recorded audio cassette.

c) McNeill studied the behaviour of Brahmin priests.

d) Vedic hymns had not been scripted.

Question 10: 

Randomness has to be dealt with successfully to ensure a better control over one’s life. Before one can deal effectively with randomness, one must acknowledge its existence.
The above statement implies the following except:

a) Randomness can be dealt with effectively.

b) If one acknowledges the existence of randomness, one will be able to deal with it effectively.

c) One can deal effectively with randomness if and only if one acknowledges its existence.

d) Everyone lives in a random world.

e) If one does not acknowledge the existence of randomness, one cannot deal with it effectively.

Enroll for CAT/MBA Courses

Answers & Solutions:

1) Answer (D)

Increasing the public awareness will educate the parents of importance of education and thus the dropout rate will decrease. Thus, course of action I follows.
The reason for the dropout of the students is that they are supporting their parents in income earning activities. If a proper compensation is given then they won’t have to work and thus, the dropout rate will decrease.Thus, course of action II follows.
If labour law is made more rigorous then the children won’t have place to work and this will result in a decrease in the dropout rate. Thus, course of action III follows.
Hence, option D is the correct answer.

2) Answer (C)

The forecast should be widely published in media, this will create panic among the farmers and they may hold the goods. Moreover this may not help in remedying the situation. Thus, course of action I should not be followed.
The drought relief team should be ready for relief work, this will help them to be ready for the drought when it comes. Thus, course of action II must be followed.
The people should be advised to go for drought resistant variety, this will help in reducing the effect of drought and thus, must be followed.
Hence, option C is the correct answer.

3) Answer (C)

4) Answer (E)

5) Answer (A)

6) Answer (C)

If there is evidence that the earlier proposal had been put into practice and not just remained a proposal on paper, then the contention of the author that the new proposal will also remain a proposal on paper is weakened. This is captured by the statement in option c), which says that many small-scale and joint-sector units have completed trials to use the three iodisation methods for regular production. This weakens the author’s contention.

Download IIFT Previous Papers PDF

7) Answer (C)

Option A cannot be inferred as it is nowhere mentioned. Option B is not necessarily true. The two groups may not agree to each others plans even if they are friendly with each other. Thus, just from the fact that they opposed each others plans we cannot infer that there is contention between the two groups. From the paragraph, we can infer that neither of the two groups can proceed i.e. neither the traffic planners nor the transport planners can move ahead with any plan. Thus, both the parties are dead-locked. Hence, we can infer option C.

8) Answer (C)

According to the passage, the latter kind of travelers only visit such monuments as the time they have at their disposal allows them to contemplate without irreverent haste.

A is incorrect as the preference of the writer is not the main subject of focus.
B is way too harsh. This cannot be inferred from the passage.
C correctly describes the second kind of travelers.

Thus, C is the correct answer.

9) Answer (B)

The paragraph states that a memorized passage could be duplicated multiple times. Thus, we can infer that a Vedic priests memory was as reliable as an audio tape. Thus, option B can be inferred from the paragraph.

10) Answer (B)

The paragraph states that if one wants control over his own life, he has to deal with randomness. Also, one has to accept the existence of randomness to deal with it effectively. But the paragraph does not state that acknowledging the existence of randomness will ensure dealing with it.

Option C is correct as to deal with randomness, one has to acknowledge its existence. But it is not necessary that if you acknowledge it you will be able to deal with it.

Hence, option B is the correct answer.

IIFT Previous year question  answer PDF

IIFT Free Mock Test

We hope this Cause and Effect questions and answers for IIFT PDF will be helpful to you.


Please enter your comment!
Please enter your name here