Decision Making – Churna is a peaceful village, surrounded by thickly
XAT 2021 Exam Paper – Decision Making – Churna is a peaceful village, surrounded by thickly
Churna is a peaceful village, surrounded by thickly forested high hills that isolate it from the
rest of the world. Agriculture is the main occupation of the Churna villagers. Moreover, the
forests provide seasonal fruits, tubers, medicinal herbs, and other forest produce in
abundance. For all material needs not produced locally, the Churna villagers depend on
Tendua, a faraway town.
Once a month, the Churna women would arduously trek with the surplus produce to Tendua.
In the Tendua market, they convey the virtues of their produce through a beautiful song and
dance routine. Reputed for their hard-bargaining skills, they always manage to extract a
premium barter from the traders, more than fulfilling all their other material needs.
Q.1 Damdu, an ambitious trader of Tendua, wants to have exclusive access to all the
surplus produce from Churna.
Which of the following offers to the Churna village will BEST help Damdu achieve her
A. Damdu should offer to provide colourful sarees that the women of Churna fancy.
B. Damdu should offer to set up a shop in Churna, which will barter all the material
requirements of the village.
C. Damdu should offer to educate the Churna villagers about cash transactions.
D. Damdu should offer novel products, unseen by the Churna villagers.
E. Damdu should offer to transport the villagers’ monthly material purchases from
Tendua to Churna for free.
Q.2 The head woman of Churna grants exclusive access to the surplus produce to Damdu.
However, Damdu’s euphoria dies down when she finds fewer takers for Churna’s
produce in Tendua. This trend continues for the next few months.
Which of the following could be the MOST possible reason for Damdu finding fewer
takers for Churna’s produce at Tendua?
A. Damdu cannot sing and dance simultaneously.
B. Hard bargaining experience offered by Churna’s women is missed by the traders of
C. The Churna women offered the authenticity that Damdu could not match.
D. The traders in the Tendua market miss the aesthetics of the beautiful song and
dance by Churna women.
E. Churna’s produce is one of the many items in Damdu’s inventory
Q.3 A few months after granting exclusive access to Damdu, the village council of Churna
meets to discuss the progress. After much debate and heated discussions, the village
council decides to terminate the contract with Damdu. The village council feels that if
the contract continues, then:
1. Over time, Churna’s produce will lose its association with Churna.
2. Churna’s people will be ignorant of new developments in the market.
3. Churna’s dance and song will lose their identity.
4. Churna’s people will lose social interaction with the outer world.
5. Churna’s people will lose their hard bargaining skills.
Which of the above concerns, when arranged in descending order of significance, will
BEST support the decision to terminate the contract with Damdu?
A. 1, 2, 5, 3, 4
B. 1, 2, 4, 5, 3
C. 2, 3, 4, 5, 1
D. 1, 3, 2, 5, 4
E. 5, 3, 4, 2, 1