Section: English Language & Comprehension
Section: Current Affairs
Section: Legal Reasoning
Section: Logical Reasoning
Section: Quantitative Techniques
Read the passage below:
Modern businesses operate in a complex environment where financial performance alone is not sufficient to maintain sustainable growth. Ethical practices, corporate governance, and corporate social responsibility (CSR) have emerged as essential components for companies seeking long-term success. Companies are expected to maintain transparency, accountability, and fairness in all dealings with stakeholders, including investors, employees, customers, and regulators.
Corporate Social Responsibility (CSR) initiatives play a significant role in enhancing a company’s social image. Activities in education, healthcare, environmental conservation, and community welfare demonstrate commitment beyond mere profit-making. Studies have shown that firms with strong CSR programs often witness higher levels of customer loyalty and investor confidence, translating into improved financial performance over time.
Ethical business conduct also involves employees following company policies, avoiding conflicts of interest, and treating colleagues and clients fairly. Failure to adhere to ethical standards can result in reputational damage, legal penalties, and financial losses. Furthermore, companies with lapses in ethical behavior may face irreversible impacts on their market position and brand image.
The passage emphasizes that sustainable business growth requires a balanced focus on profitability and ethical responsibility. Organizations that integrate CSR into their core strategies tend to enjoy better stakeholder trust, stronger brand equity, and resilience against market volatility.
Read the passage below:
Between July and September 2025, India experienced several notable developments in economic policy, international trade, and governance. The The Reserve Bank of India (RBI) maintained the repo rate at 6.5% to balance inflation and growth, signaling a cautious approach towards monetary policy. The central bank emphasized continued support for the digital payments sector, aiming to promote financial inclusion for rural and semi-urban populations.
The Union Budget for 2025–26 highlighted investment in infrastructure, renewable energy projects, and urban development. Incentives were announced for fintech startups, green energy ventures, and small-scale enterprises, with the government targeting employment generation and technological innovation. Experts noted that these measures could significantly improve investor confidence while fostering sustainable economic growth.
Internationally, India signed a trade agreement with ASEAN countries, focusing on increasing exports of pharmaceuticals, textiles, and IT services. The deal is projected to boost bilateral trade by 15% over the next two years. Simultaneously, diplomatic efforts were undertaken to resolve ongoing trade disputes with neighboring countries, emphasizing negotiation over tariffs or sanctions.
In social governance, the government launched initiatives for digital literacy and financial education. Public-private partnerships were encouraged to improve access to health and education services in underserved regions. Analysts commented that such measures could enhance human capital and reduce socio-economic disparities.
These developments collectively suggest that India is pursuing a multi-pronged strategy: maintaining macroeconomic stability, fostering innovation and digital inclusion, expanding international trade, and improving social welfare programs. Observers believe that such integrated approaches are crucial for achieving long-term sustainable growth and positioning India as a resilient player in the global economy.
Read the passage below:
Rahul, a small-scale trader, entered into a contract with a logistics company to deliver goods to multiple clients across India within 15 days. The contract explicitly mentioned the delivery timelines, quality standards, and penalties for delays. However, unexpected heavy flooding in several regions caused a 5-day delay in delivery. The logistics company invoked the force majeure clause, claiming exemption from penalties due to unforeseen natural events.
Under Indian Contract Law, courts examine whether the event was truly unforeseen, beyond control, and whether the parties exercised due diligence to mitigate the impact. The company argued that it had contingency plans, but the magnitude of the flood exceeded predictions. Rahul contended that reasonable alternatives could have been adopted, such as rerouting shipments or using alternate transportation, to adhere to the contractual timeline.
In a related case, courts have ruled that a party cannot evade obligations merely by citing unforeseen events if it failed to take all reasonable steps to minimize disruption. Legal experts note that force majeure clauses protect both parties by defining events considered beyond control, but their application requires careful interpretation and evidence.
Additionally, the case highlights the importance of clarity in drafting contractual clauses. Vague or ambiguous terms often lead to disputes, legal costs, and business delays. Legal reasoning thus involves analyzing obligations, exceptions, and possible remedies under law.
The passage illustrates how Indian Contract Law balances parties’ obligations with real-world contingencies, emphasizing diligence, fairness, and the proper application of contractual clauses. Understanding the legal implications of contractual agreements is essential for businesses to minimize risk and ensure compliance.
Read the passage below:
A mid-sized company, GreenTech Solutions, faced a dilemma regarding the introduction of an innovative software product. The management needed to decide whether to invest significantly in research and development (R&D) or to continue with existing products. Some senior executives argued that the new product could provide a competitive advantage in the market and attract new clients. Others pointed out the risks of high development costs, potential software glitches, and uncertain market reception.
To resolve this dilemma, the company analyzed historical data on product launches, reviewed customer feedback, and conducted surveys on potential demand. They also evaluated competitor strategies, noting that rival companies were planning similar product launches. Based on this reasoning, management considered several options: proceed immediately with R&D, delay until more data was available, or allocate resources to incremental improvements of current offerings.
The passage highlights how decisions in business often involve weighing risks against potential gains. Logical reasoning requires identifying assumptions, evaluating evidence, and predicting possible outcomes. For example, the assumption that the new product will guarantee higher revenue may not hold if market adoption is slow or competitors react aggressively. Similarly, delaying the launch could risk losing market share, while investing heavily without certainty may strain financial resources.
Analyzing cause-and-effect relationships is critical. Investment in R&D could lead to innovative products and revenue growth, but might also increase costs and operational challenges. Incremental improvements may be safer but could result in stagnation and missed opportunities. Effective decision-making involves considering multiple perspectives, weighing short-term versus long-term implications, and identifying underlying assumptions in strategic arguments.
Read the passage below:
BrightMart, a retail chain operating across multiple cities, recorded significant variations in monthly sales and profits over the last financial year. The management observed that peak sales occurred during festival months, while profits fluctuated based on inventory costs, discounts, and operational expenses. To optimize revenue, the company implemented a data-driven approach, analyzing past sales data, seasonal demand trends, and product-wise profitability.
For instance, in April, sales of electronics increased by 20% compared to March, while clothing sales declined by 5%. Inventory costs for electronics rose proportionally due to higher procurement from suppliers, impacting net profits. The management calculated the profit margin for each category, defined as (Revenue − Cost) / Revenue × 100, to identify the most lucrative product lines.
BrightMart also considered time management for staff and supply chain efficiency. By streamlining delivery schedules and reducing stock holding periods, the company aimed to improve cost-effectiveness. Additionally, promotions and discounts were optimized to attract more customers without significantly affecting profit margins.
The management noticed a pattern: a 10% increase in sales of high-margin products often resulted in a 12% increase in overall profit, while a 10% increase in low-margin product sales resulted in only a 3% profit rise. This observation underlined the importance of focusing on high-margin products to maximize profitability.
The passage illustrates how businesses use quantitative techniques—data analysis, percentage calculations, profit margin assessment, and resource allocation—to make informed decisions. Logical interpretation of numbers, trends, and ratios enables businesses to identify profitable strategies, manage costs, and plan future investments.
