Comprehension
Read the following scenario and answer the THREE questions that follow.
Future Leaders is one of the most prestigious private schools in a small town, next to an industrial hub. Most of its students come from affluent families, but there are some who belong to middleincome and lower middle-income families as well. The school charges an annual fee of ₹2 lakhs, inclusive of all charges, payable at the beginning of the academic year. Roughly 20% of the fees collected goes into paying the salaries of the teachers, another 30% for the upkeep of the school, and roughly 20% for miscellaneous expenses in running day-to-day businesses like supply, cleaning etc. The remaining goes into an exigency corpus. 
This year, like the rest of the country, the town has been hit by the coronavirus pandemic. The classes have been shifted online. The local authorities have mandated that all schools have to reduce their fees by 20%. Further, parents should be given extended time to pay the fees if they are in financial distress. Six months into the academic year, only 40% of the parents have paid even the reduced annual fees.
Question: 1

Ajay Biswas, the rector of the school, is alarmed by the shortfall in fee payments and wants to find the best solution to manage the situation. He does not want to trouble parents who might be genuinely in financial distress, but feels that there may be a possibility that many parents are taking advantage of the situation.
Which of the following actions by the school will BEST make financially capable parents pay the fees?

Updated On: Aug 22, 2025
  • Give a 10% bonus marks to all those students who have paid the fees
  • Share through local newspapers that the school is facing financial crunch and may have to close down if parents don’t pay fees
  • Ask parents to submit a proof of financial distress within two weeks, failing which can bar their wards from attending classes
  • Offer 10% and 5% discounts to parents paying fees within the next one week and two weeks respectively
  • Call parents every three days, requesting them to pay the fees and help their school out
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The Correct Option is C

Solution and Explanation

Step 1: Identify the Goal 
Ajay wants to ensure that financially capable parents pay on time, while not penalizing genuinely distressed families. So, the right policy must differentiate between the two groups.

Step 2: Analyze the Options
- Option 1: Giving bonus marks is academically unethical. Marks should not depend on fees. 
- Option 2: Announcing in newspapers may create panic and harm the school’s reputation. 
- Option 3: Asking for proof of financial distress is fair and targeted. It protects genuine cases and pressures others to comply. 
- Option 4: Discounts may encourage quick payment but still allows capable parents to delay, and reduces total revenue. 
- Option 5: Calling every three days is inefficient and may irritate parents without yielding strong results. 
 

Step 3: Logical Conclusion
The only option that distinguishes distressed parents from defaulters is Option 3. By asking for proof, the school ensures fairness while creating pressure on capable parents to pay.

Final Answer:
\[ \boxed{\text{Option (C): Ask parents to submit proof of distress, failing which their wards may be barred.}} \]

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Question: 2

The board of trustees of the school is concerned about the current financial situation and has called Biswas for a meeting. The trustees have thought of the following actions, as listed below, to improve the school finances immediately:
P. Appeal to the local industrialists to donate to the school
Q. Withhold 20% of teachers' salary till the situation improves
R. Ask parents to pay up within a week or show a proof of financial distress
S. Stop online classes for a week to signal the desperate financial crunch
T. Start an extra section in every class and offer admission to whoever is willing to pay fees
Biswas is tasked to find the most feasible way of alleviating the financial crunch immediately.
Which of the following combinations of the above listed actions, in a DECREASING order of preference, will BEST help Biswas in achieving his goal?

Updated On: Aug 22, 2025
  • RSQTP
  • TSRPQ
  • QRSPT
  • PRSQT
  • PSTRQ
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The Correct Option is C

Solution and Explanation

Step 1: Identify the Goal 
The trustees want to improve the school finances immediately. Hence, actions that can generate or secure funds quickly are prioritized over long-term or symbolic actions.

Step 2: Evaluate Each Option
- Q. Withhold 20% of teachers’ salary → Provides instant cash retention for the school. Most direct short-term relief. 
- R. Ask parents to pay within a week (or show proof of distress) → Accelerates inflow of fees immediately. Highly effective. 
- S. Stop online classes → A pressure tactic to signal urgency. Not a direct inflow of money, but may push parents to pay faster. 
- P. Appeal to industrialists for donations → Uncertain and time-consuming. May not yield immediate results. 
- T. Start an extra section for new admissions → Requires planning, staff, and time; not immediate relief. Long-term strategy. 
 

Step 3: Ranking in Decreasing Order of Preference
Immediate actions with sure impact come first: \[ Q \ (\text{retain teacher salary}) \;>\; R \ (\text{fee collection from parents}) \;>\; S \ (\text{pressure via suspension of classes}) \;>\; P \ (\text{appeals for donation}) \;>\; T \ (\text{new sections/admissions}) \]

Step 4: Conclusion
The best order is: QRSPT, which corresponds to option (C).

Final Answer:
\[ \boxed{\text{QRSPT}} \]

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Question: 3

Teachers of Future Leaders contribute to its stellar reputation. Moreover, they assist the school in arriving at several critical decisions. Biswas resents their involvement in school matters as he has to listen to their collective voice rather than the other way around.
Biswas feels that the current situation offers him an opportunity to get back at the teachers. He wants to discuss the possibility of reducing teachers’ salaries by 20% with the board of trustees.
Which of the following, if true, will BEST enable Biswas to present his case for reducing teachers’ salaries?

Updated On: Aug 22, 2025
  • 30% of the most experienced teachers may resign if there is a pay cut
  • Most of the teachers are alumni of the school, and hence, should be asked to give back to the school through a pay cut
  • Future Leaders pays higher salaries to its teachers in comparison to the other schools in the city.
  • Two other well-known private schools in the city, struggling to survive, have resorted to a pay cut
  • Teachers' salaries are a significant part of the school’s operating cost
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The Correct Option is D

Solution and Explanation

Step 1: Analyze the First Blank 
The sentence begins with: “While start-ups have ________ reach...”. Start-ups, by nature, begin with fewer resources and smaller networks. So the best word is “Limited”. Other words like “wide” or “huge” contradict reality.

Step 2: Analyze the Second Blank
“_____ they introduce...” → The correct connector here is “when”, because the sentence is conditional on the moment they introduce new products. Words like “since” or “although” do not fit the logical flow.

Step 3: Analyze the Third Blank
“...they introduce ______ products...” → Start-ups thrive on innovation, so the correct word is “innovative”. Options like “old” or “ordinary” do not make sense.

Step 4: Analyze the Fourth Blank
“...they open-up ______ markets.” → Innovative products usually create new markets. Words like “declining” or “existing” do not capture the forward-looking nature of start-ups.

Step 5: Conclusion
The most meaningful completion is:
“While start-ups have limited reach, when they introduce innovative products, they open-up new markets.”

Final Answer:
\[ \boxed{\text{Limited, when, innovative, new}} \]

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