Comprehension

The following graphs give annual data of Assets, Sales (as percentage of Assets) and Spending on Corporate Social Responsibility (CSR) (as percentage of Sales), of a company for the period 2004 - 2009. 

Question: 1

In which year was the increase in spending on CSR, vis-à-vis the previous year, the maximum?

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For maximum increase questions, calculate absolute year-on-year changes instead of relying on graph visuals. Tabulating data helps confirm.
Updated On: Aug 23, 2025
  • 2005
  • 2006
  • 2007
  • 2008
  • 2009
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The Correct Option is B

Solution and Explanation

Step 1: Gather base data.
From the graphs: - 2004: Assets = 100, Sales/Asset = 0.6 ⇒ Sales = 60, CSR% of sales = 1.67% ⇒ CSR = 1.0. - 2005: Assets = 110, Sales/Asset = 0.5 ⇒ Sales = 55, CSR% = 2.09% ⇒ CSR ≈ 1.15. - 2006: Assets = 125, Sales/Asset = 0.64 ⇒ Sales = 80, CSR% = 2.5% ⇒ CSR = 2.0. - 2007: Assets = 135, Sales/Asset = 0.67 ⇒ Sales = 90, CSR% = 2.22% ⇒ CSR = 2.0. - 2008: Assets = 150, Sales/Asset = 0.8 ⇒ Sales = 120, CSR% = 2.08% ⇒ CSR = 2.5. - 2009: Assets = 160, Sales/Asset = 1.25 ⇒ Sales = 200, CSR% = 1.58% ⇒ CSR = 3.16.

Step 2: Compute year-on-year increase in CSR spending.
- 2005 vs 2004: 1.15 – 1.0 = 0.15. - 2006 vs 2005: 2.0 – 1.15 = 0.85. - 2007 vs 2006: 2.0 – 2.0 = 0.0. - 2008 vs 2007: 2.5 – 2.0 = 0.5. - 2009 vs 2008: 3.16 – 2.5 = 0.66.

Step 3: Identify maximum increase.
The biggest jump is in 2006 (increase of 0.85). \[ \boxed{\text{2006}} \]
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Question: 2

Of the years indicated below, in which year was the ratio of CSR/Assets the maximum?

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When asked for “ratio to Assets,” always compute CSR spending relative to Assets, not to Sales. Carefully exclude years not listed in the options.
Updated On: Aug 23, 2025
  • 2004
  • 2005
  • 2006
  • 2007
  • 2008
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The Correct Option is

Solution and Explanation

Step 1: CSR/Assets ratio formula.
\[ \text{CSR/Assets} = \frac{\text{CSR Spending}}{\text{Assets}} \]

Step 2: Calculate for each year.
- 2004: CSR = 1, Assets = 100 ⇒ 0.01. - 2005: 1.15 / 110 ≈ 0.01045. - 2006: 2.0 / 125 = 0.016. - 2007: 2.0 / 135 ≈ 0.0148. - 2008: 2.5 / 150 ≈ 0.0166. - 2009: 3.16 / 160 ≈ 0.01975 (but not in options).

Step 3: Compare among given options.
From the given years (2004–2008), the maximum ratio is in

2008 (0.0166). \[ \boxed{\text{2008}} \]
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Question: 3

The maximum value of spending on CSR activities in the period 2004–2009 is closest to which of the following options?

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Whenever the question asks “closest to,” carefully check the computed value and then approximate it to the nearest given option. Do not confuse with rounding off — “closest” may mean slightly higher or lower, whichever is nearer.
Updated On: Aug 23, 2025
  • Rs. 0.5 Crore
  • Rs. 1.0 Crore
  • Rs. 2.0 Crore
  • Rs. 3.0 Crore
  • Rs. 4.0 Crore
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The Correct Option is D

Solution and Explanation

Step 1: Understand the given data.
We are told that CSR spending is a percentage of sales. Sales in turn are derived from assets using the percentage given for each year. Hence, CSR spending = \(\text{Sales} \times \text{CSR % of sales}\).

Step 2: Tabulate the values year-wise. \[ \begin{array}{|c|c|c|c|c|} \hline \text{Year} & \text{Assets (crore)} & \text{Sales (crore)} & \text{CSR% of sales} & \text{CSR Spending (crore)}
\hline 2004 & 100 & 60 & 1.67% & 1.0
2005 & 110 & 55 & 2.09% & 1.15
2006 & 125 & 80 & 2.5% & 2.0
2007 & 135 & 90 & 2.22% & 2.0
2008 & 150 & 120 & 2.08% & 2.5
2009 & 160 & 200 & 1.58% & 3.16
\hline \end{array} \]

Step 3: Identify the maximum.
From the last column (CSR Spending in crores): - 2004 = 1.0, - 2005 = 1.15, - 2006 = 2.0, - 2007 = 2.0, - 2008 = 2.5, - 2009 = 3.16. Clearly, the maximum = 3.16 crores in 2009.

Step 4: Match with given options.
3.16 crores is closest to Rs. 3.0 crores. \[ \boxed{\text{Rs. 3.0 Crore}} \]
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Question: 4

In which year did the spending on CSR (measured in Rs) decline, as compared to the previous year?

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In trend analysis, carefully differentiate between three cases: 1. \emph{Increase} (value goes up). 2. \emph{No change} (value stays the same). 3. \emph{Decline} (value drops). Many students confuse “no change” with “decline,” but they are not the same.
Updated On: Aug 23, 2025
  • 2006
  • 2007
  • 2008
  • 2009
  • None of the above
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The Correct Option is

Solution and Explanation

Step 1: Recall the computed CSR spending. \[ \begin{array}{|c|c|} \hline \text{Year} & \text{CSR Spending (crore)}
\hline 2004 & 1.0
2005 & 1.15
2006 & 2.0
2007 & 2.0
2008 & 2.5
2009 & 3.16
\hline \end{array} \]

Step 2: Check year-on-year changes. - From 2004 to 2005: \(1.0 \rightarrow 1.15\) (increase).
- From 2005 to 2006: \(1.15 \rightarrow 2.0\) (increase).
- From 2006 to 2007: \(2.0 \rightarrow 2.0\) (no decline, value constant).
- From 2007 to 2008: \(2.0 \rightarrow 2.5\) (increase).
- From 2008 to 2009: \(2.5 \rightarrow 3.16\) (increase).

Step 3: Conclusion.
At no point does the CSR spending decline compared to the previous year. 2006–2007 shows a flat value (equal), but not a fall. Therefore, the correct answer is: \[ \boxed{\text{None of the above}} \]
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