Ethical– a person is called unethical, when he deviates from principles. The principles and their use is often guided by two definitions:
Moral: society’s code for individual survival.
Ethics: an individual’s code for society survival.
Naresh was a small-time civil contractor in a small city. His major clients were the residents who wanted ad-hoc work like painting, building extensions to be done. His just prices had made him a preferred contractor for most of the clients who preferred him over other civil contractors. Always he followed the principle that client had to be kept happy– only by doing so it would be a win-win situation for both. However due to the unpredictability of such orders from residents, Naresh used to be idle for substantial part of the year. As a consequence, he could not expand his business. His two children were growing up and his existing business could not support their expenses. The medical expense of his elderly parents was another drain on his resources. The constant rise of prices in medical care and medicines was another issue.
For Naresh, family’s concern was predominant. Naresh was, therefore, under pressure to expand his business. He was the sole earning member of his family, and he had to ensure their well-being. He thought that by expanding his business, not only would he be able to care for his family in a better way, as well as offer employment to more number of masons and labourers. That would benefit their families as well. Naresh drew the boundary of his society to include himself, his family members, his employees and their family members.
For expansion, the only option in the city was to enlist as a contractor for government work. Before deciding, he sought advice from another contractor, Srikumar, who had been working on government projects for a long period of time. Srikumar followed the principle of always helping others, because he believed that he would be helped back in return some day. Srikumar had just one advice: “The work is given to those who will win the bidding process and at the same time will give the maximum bribe. Prices quoted for work have to include bribes, else the bills will not get cleared and the supervisors will find multiple faults with the execution of work. This ensures survival and prosperity for contractors.”
When asked about other contractors, Srikumar said: “The government contractors are like a micro-society in themselves, almost like a brotherhood. Within that, they are highly compet itive; however towards any external threat they are united to ensure no harm happens to any of their members.”
Naresh decided to work as a government contractor. Following Srikumar’s advice, he inflated the prices so that he could pay the bribes out the bills received.
Show Hint
- Naresh is now totally unethical.
- Naresh cannot be called totally ethical.
- Naresh can be called ethical when it suits him.
- Naresh is ethical to some extent.
- Naresh is being totally ethical.
The Correct Option is
Solution and Explanation
A new supervisor had joined a government department where both Naresh and Srikumar were bidding for work. During the bidding process for a particular project, in an open meeting with all contractors and officers from the department, he produced a document which had the rates at which Naresh had worked for private clients for similar building-related work. He accused Naresh and Srikumar of over-pricing for government work and threatened to disqualify them from the bidding process if the rates were not brought down. Faced with that situation, Naresh gave a written reply that “I use materials of inferior quality for private work, and that is the reason for price difference.” Srikumar supported Naresh in the meeting by saying that he had seen Naresh’s work and he agreed. In this situation, it can be concluded that:
Show Hint
- both Naresh and Srikumar are unethical.
- Naresh is unethical while Srikumar is not.
- both Naresh and Srikumar are ethical.
- Naresh is ethical to a large extent, but no conclusion can be made about Srikumar.
- Srikumar is unethical, but no conclusion can be made about Naresh.
The Correct Option is D
Solution and Explanation
Lankawala, another contractor, when faced with the new supervisor’s demand to reduce prices for government work, asked him to guarantee that no bribes would be taken, and only then prices would be reduced. This was said in front of everyone. At this, the supervisor forced Lankawala out of the meeting and threatened to black-list him. Lankawala did not say anything and walked away. Blacklisting implied he would not be able to participate in any government projects. Later, the supervisor’s dead body was found on railway tracks. Investigations followed, but none of the contractors recounted the happenings of the meeting to the police. Getting involved in a murder case could lead to unpredictable outcomes. Naresh wanted to speak out, but was pressurized by Srikumar and other contractors not to. As a result, he did not. Due to this, the case was closed unresolved. In this situation, it can be concluded that:
Show Hint
- Srikumar is immoral, but ethical, while Naresh is not unethical.
- Naresh is ethical and moral, while other contractors are immoral and unethical.
- Naresh, Srikumar and other contractors are both immoral and unethical.
- Other contractors are moral, and they prevented Naresh from being immoral.
- Other contractors are unethical, but no conclusion can be made about Naresh.
The Correct Option is A
Solution and Explanation
Top Questions on Caselets
- Abhishek, a student of a prestigious business school, gets interested in Payseasy, a fintech firm, after listening to a pre-placement talk by Neha Bhupati, a senior leader at the firm, and an alumna of the same business school. He joins Payseasy through campus placement. Neha plays a key role in recruiting him, seeing great potential in him. Abhishek starts working in the digital payments vertical under Mukesh Kumar, who reports directly to Neha. Mukesh, Abhishek’s direct superior, is impressed by his performance and rates him very high in the first year. Abhishek understands that if Mukesh consistently rates him as “Excellent Performer” for the second year as well, his chances of getting promoted will improve. (The organization promotes individuals who are consistently rated as “Excellent Performer” for at least two years by their immediate superiors.)
Over time, Abhishek realizes that the learning opportunities in his current role have plateaued. Given his longstanding interest in blockchain and cryptocurrency, he starts exploring opportunities in that vertical within the company. This change is not possible without the consent of his immediate boss, Mukesh. When Abhishek brings this up with Mukesh, he acknowledges Abhishek’s curiosity and enthusiasm; however, he emphasizes how Abhishek’s competencies fit him rightly into the current vertical. Mukesh assures Abhishek that more challenging assignments in the future are forthcoming, but he remains a good team player. Further, he shares his skepticism about the long-term prospects of cryptocurrency. Hence, Mukesh politely declines Abhishek’s request. Ned Flanders and Homer Simpson Partners Limited is a law rm, known for its unwavering commitment to client satisfaction. They treat the clients as family members who have grown along with the rm. Further, they are highly regarded in the industry, consulted by the country’s top organizations. Among the founders, Homer Simpson is amboyant, while Ned Flanders is serious. Together, they bring a dynamic balance to the team.
The organization believes in a strong socialization ritual that bonds the new lawyers (newcomers) with the existing members. Also, the socialization ritual ensures that newcomers fully understand the nature of their work and integrate seamlessly into the company’s culture. During their rst week, newcomers are overloaded with a barrage of artificial tasks, unexpected client calls, and a challenging meeting with the founders. This results in newcomers getting overwhelmed, and doubting their decision to join the rm, only for the founders to meet them and reveal that this is one big prank and a way to welcome them to the organization. This socialization ritual has served them well for the past two decades. However, not all the newcomers appreciate the utility of this ritual.
One of the lawyers, Ms. Lisa Simpleton, who joined in 2023 and went through the same socialization ritual, found it unwelcoming. She believes that other newcomers might also share the same opinion. Lisa thinks that the current generation, especially post-COVID, needs more friendly welcome, and the rm must put an end to this ritual.Mr. Zubin Mistry is the owner and the chief editor of the newspaper The Pluralist, renowned for its high reporting standards and outstanding writing quality. The Pluralist’s authentic reporting distinguishes it from other newspapers that sensationalize news. They are responsible employers, known to be highly supportive towards their employees. Its news editing team is led by Ms. Ramya Kattabomman, a respected veteran in the newspaper reporting industry, wellknown for her stringent adherence to the ethical standards of newspaper reporting.
Mr. Aditya Swaroop Verma, an award-winning senior journalist, has brought in an exposé into the activities of a mining company, operating in an ecologically vulnerable area. In his hardhitting reporting style, he has presented interviews with tens of people, delineating how the mining company has used illegal means to start mining in that area. These mining activities may lead to the destruction of the local ecological balance. However, Aditya Swaroop is unable to obtain an interview with the management of the mining company.
Aditya Swaroop’s investigative report article offers signi cant revelations about the alleged illegal activities of the mining company which were hardly covered in the media otherwise. Nevertheless, his sources have requested for complete anonymity- What is the total number of jackets, shoes, and room heaters distributed?
- Read the following scenario and answer the THREE questions that follow.
DeepSea is a natural gas extraction company that retrieves natural gas from rock formations beneath the seabed. This gas is then transported through its extensive pipeline network to a bottling plant, located at the sea surface, for processing. The gas in rock formations is pressurized, enabling it to flow to the surface and reach the bottling plant. Yet, excessive pressure can cause bursts in the pipeline, leading to uncontrolled gas release, known as blowout. A blowout carries a staggering cost, encompassing not only environmental damage but also reputation loss and financial losses totaling crores of rupees. Additionally, the impacted section of the pipeline requires a complete replacement. Industry safety regulations divide the pipeline network into three levels: Level 3 is the part under the seabed, Level 2 is the part above the seabed but in the deep sea, while Level 1 is near the surface. The safety regulations require multiple blowout preventer valves, from now on simply referred to as valves, to be placed at the three different levels of the pipeline network. The valves are normally kept closed, but when the pressure in any part of the pipeline rises beyond a critical level, nearby valves are opened remotely to release the pressure in a controlled manner to prevent blowout. The number of valves across the pipeline helps localize the pressure release, with a greater number of valves providing a backup mechanism, helping in improving pressure localization in case of a blowout. Given that the valves themselves can occasionally malfunction and not release the pressure when needed, using a higher number of valves ensures that a malfunctioning valve can seek the safety of a nearby functioning valve.
A valve can malfunction in two ways: it may fail to release pressure when needed, as previously mentioned, or it can leak gas during regular operation, resulting in unwanted losses. When a valve malfunctions, it necessitates manual replacement.
In the DeepSea Network, 30% of the valves are located at Level 3, which is the deepest level. The remaining valves are evenly distributed between the top two levels. These valves are critical to ensuring safety and are exclusively supplied by GoValve, a highly specialized manufacturer that holds a monopoly in the country’s market.
Questions Asked in XAT exam
- An artificial swimming pool is circular and water is flowing clockwise at a speed of 3 km/hr. Two swimmers Ayub and Rana start from diametrically opposite points, Ayub in the anticlockwise direction and Rana in the clockwise direction. They first meet at a point such that Ayub has covered 60 m by that time. Their second meeting point is such that Rana has covered another 180 m after the first meeting point. If the speed of Rana in still water is 3 km/hr, find the time taken by Ayub to cover one full circle in the clockwise direction.
- XAT - 2026
- Time and Work
- Arrange the following generations from the oldest to the youngest:
1. Generation X
2. Silent Generation
3. Generation Alpha
4. Baby Boomers
5. Millennials
- XAT - 2026
- Current Affairs
- Read the following scenario and answer the THREE questions that follow.
Brijbhushan, a microfinancier, lends money at the rate of Rs.10 per square meter to small farmers at a village. He charges an annual interest rate of 10%. All the farming plots in that village are rectangular, with areas varying between a minimum of 1000 square meters and a maximum of 10,000 square meters.
This year, Brijbhushan has lent money only to five farmers: Aditya, Binod, Chhuttan, Dabloo and Govind. The perimeter of Chhuttan’s plot is 250 meters, with the length and width being at a ratio of 4:1. Aditya’s plot has an area three times the area of Govind’s plot. The area of Aditya’s plot is also the average of the areas of Govind’s plot and Dabloo’s plot. The plots belonging to Aditya, Binod and Dabloo are of the same width, but of different lengths. Moreover, the length of Binod’s plot is the sum of the lengths of Aditya’s plot and Dabloo’s plot.- XAT - 2026
- Mensuration
Light Chemicals is an industrial paint supplier with presence in three locations: Mumbai, Hyderabad and Bengaluru. The sunburst chart below shows the distribution of the number of employees of different departments of Light Chemicals. There are four departments: Finance, IT, HR and Sales. The employees are deployed in four ranks: junior, mid, senior and executive. The chart shows four levels: location, department, rank and gender (M: male, F: female). At every level, the number of employees at a location/department/rank/gender are proportional to the corresponding area of the region represented in the chart.
Due to some issues with the software, the data on junior female employees have gone missing. Notice that there are junior female employees in Mumbai HR, Sales and IT departments, Hyderabad HR department, and Bengaluru IT and Finance departments. The corresponding missing numbers are marked u, v, w, x, y and z in the diagram, respectively.
It is also known that:
a) Light Chemicals has a total of 210 junior employees.
b) Light Chemicals has a total of 146 employees in the IT department.
c) Light Chemicals has a total of 777 employees in the Hyderabad office.
d) In the Mumbai office, the number of female employees is 55.
- XAT - 2026
- Pie Charts
An investment company, Win Lose, recruit's employees to trade in the share market. For newcomers, they have a one-year probation period. During this period, the employees are given Rs. 1 lakh per month to invest the way they see fit. They are evaluated at the end of every month, using the following criteria:
1. If the total loss in any span of three consecutive months exceeds Rs. 20,000, their services are terminated at the end of that 3-month period,
2. If the total loss in any span of six consecutive months exceeds Rs. 10,000, their services are terminated at the end of that 6-month period.
Further, at the end of the 12-month probation period, if there are losses on their overall investment, their services are terminated.
Ratan, Shri, Tamal and Upanshu started working for Win Lose in January. Ratan was terminated after 4 months, Shri was terminated after 7 months, Tamal was terminated after 10 months, while Upanshu was not terminated even after 12 months. The table below, partially, lists their monthly profits (in Rs. ‘000’) over the 12-month period, where x, y and z are masked information.
Note:
• A negative profit value indicates a loss.
• The value in any cell is an integer.
Illustration: As Upanshu is continuing after March, that means his total profit during January-March (2z +2z +0) ≥
Rs.20,000. Similarly, as he is continuing after June, his total profit during January − June ≥
Rs.10,000, as well as his total profit during April-June ≥ Rs.10,000.
- XAT - 2026
- Logical and Analytical Reasoning Skills