45 mins & 20 Questions test
NMIMS Competency Test – Practice Set 2
Section A: Verbal Ability (8 Questions)
Q1. Para Summary Hard
The commodification of attention in the digital age has fundamentally altered the architecture of human discourse. By prioritizing engagement metrics—often fueled by outrage or sensationalism—over substantive accuracy, algorithmic curation creates a feedback loop that incentivizes polarization. Consequently, the public sphere, once envisioned as a marketplace of ideas where rational debate would filter out falsehoods, has increasingly devolved into fragmented enclaves where confirmation bias is algorithmically reinforced, rendering cross-ideological consensus nearly impossible.
Choose the best summary:
Correct Answer: A
Rationale: The paragraph’s core argument links the “commodification of attention” (metrics) to “polarization” via “algorithmic curation,” concluding that this destroys the “marketplace of ideas” (rational debate). Option A captures the cause (algorithms/engagement), the mechanism (confirmation bias), and the ultimate consequence (destruction of rational debate).
Rationale: The paragraph’s core argument links the “commodification of attention” (metrics) to “polarization” via “algorithmic curation,” concluding that this destroys the “marketplace of ideas” (rational debate). Option A captures the cause (algorithms/engagement), the mechanism (confirmation bias), and the ultimate consequence (destruction of rational debate).
Q2. Para Completion Moderate
In the realm of high-stakes corporate negotiation, the leverage held by a party is rarely static; rather, it is a fluid dynamic influenced by external market conditions, internal stakeholder alignment, and the perceived urgency of the counterparty. A negotiator who relies exclusively on their initial strong position without adapting to shifting variables risks alienation. ________.
Choose the most logical sentence:
Correct Answer: B
Rationale: The text establishes that leverage is “fluid” and warns against “relying exclusively on initial strength.” The logical conclusion must explain why this is a risk. Option B connects the rigid stance to the loss of power, fitting the context of fluidity mentioned earlier.
Rationale: The text establishes that leverage is “fluid” and warns against “relying exclusively on initial strength.” The logical conclusion must explain why this is a risk. Option B connects the rigid stance to the loss of power, fitting the context of fluidity mentioned earlier.
Q3. Inference-Based Moderate
A recent longitudinal study on remote work productivity revealed a bifurcation in outcomes: while individual contributors in coding and writing roles reported a 15% increase in output, cross-functional teams requiring synchronous brainstorming saw a 20% decline in project innovation metrics. The study controlled for internet speed and home office setups.
Which can be inferred?
Correct Answer: B
Rationale: The text contrasts two specific groups: individual tasks (coding/writing) which improved, and group tasks (brainstorming) which declined. This infers that success depends on the type of work (task nature). Option C is incorrect because the study controlled for those factors.
Rationale: The text contrasts two specific groups: individual tasks (coding/writing) which improved, and group tasks (brainstorming) which declined. This infers that success depends on the type of work (task nature). Option C is incorrect because the study controlled for those factors.
Q4. RC (Short Passage) Hard
While the “Great Man” theory of history posits that history is largely the product of the decisions of influential individuals, the Annales school argues for the primacy of long-term social and economic structures (“la longue durée”). They contend that focusing on specific battles or kings obscures the profound, albeit slow-moving, geographic and material forces that truly constrain and guide human development. To an Annales historian, a political revolution is merely a surface ripple on a deep ocean of agricultural and demographic consistency.
The author implies that an Annales historian would likely:
Correct Answer: C
Rationale: The passage states Annales historians focus on “long-term social and economic structures” and “agricultural… consistency” while dismissing specific events/individuals as “surface ripples.” Option C (grain prices over centuries) represents a long-term economic structure, fitting the definition perfectly.
Rationale: The passage states Annales historians focus on “long-term social and economic structures” and “agricultural… consistency” while dismissing specific events/individuals as “surface ripples.” Option C (grain prices over centuries) represents a long-term economic structure, fitting the definition perfectly.
Q5. Vocabulary in Context Moderate
The CEO’s speech was widely criticized for its obfuscation; rather than addressing the allegations of financial misconduct directly, she spoke in vague platitudes about “synergy” and “forward momentum.”
Obfuscation most nearly means:
Correct Answer: B
Rationale: The context clue “rather than addressing… directly” and “spoke in vague platitudes” indicates she was trying to hide the truth or make things unclear. Obfuscation means the action of making something obscure, unclear, or unintelligible.
Rationale: The context clue “rather than addressing… directly” and “spoke in vague platitudes” indicates she was trying to hide the truth or make things unclear. Obfuscation means the action of making something obscure, unclear, or unintelligible.
Q6. Logical Flow Moderate
Legacy banking institutions are facing an existential threat from decentralized finance (DeFi) protocols that operate without intermediaries. These protocols offer higher yields and faster transactions, appealing to a digital-native generation. However, the lack of regulatory oversight in DeFi exposes users to significant risks, such as smart contract failures and scams. ________.
Which sentence should come next?
Correct Answer: B
Rationale: The paragraph sets up a conflict: Banks are threatened by DeFi’s speed/yields, BUT DeFi has a weakness (lack of safety). The logical conclusion for the banks is to combine their strength (safety/regulation) with the competitor’s strength (tech), which is described in Option B.
Rationale: The paragraph sets up a conflict: Banks are threatened by DeFi’s speed/yields, BUT DeFi has a weakness (lack of safety). The logical conclusion for the banks is to combine their strength (safety/regulation) with the competitor’s strength (tech), which is described in Option B.
Q7. Tone Identification Moderate
“The committee’s decision to solve the budget crisis by printing more money is a masterclass in kicking the can down the road, ensuring that the inevitable hyperinflation will be someone else’s problem to solve.”
The tone of this sentence is:
Correct Answer: B
Rationale: Phrases like “masterclass in kicking the can down the road” and “inevitable hyperinflation” show strong disapproval and sarcasm. Acerbic means sharp and forthright/bitter.
Rationale: Phrases like “masterclass in kicking the can down the road” and “inevitable hyperinflation” show strong disapproval and sarcasm. Acerbic means sharp and forthright/bitter.
Q8. Strengthen the Argument Easy
Argument: Implementing a four-day workweek will not reduce total economic output; in fact, it will likely increase it by reducing burnout and healthcare costs while stimulating the leisure economy.
Which option strengthens this?
Correct Answer: A
Rationale: The argument claims economic output will increase. Option A provides real-world data (evidence) from a similar context confirming increased revenue and reduced health issues (sick days), directly supporting the premises.
Rationale: The argument claims economic output will increase. Option A provides real-world data (evidence) from a similar context confirming increased revenue and reduced health issues (sick days), directly supporting the premises.
Section B: Mental Ability / Logical Reasoning (6 Questions)
Q9. Critical Reasoning – Strengthen Easy
Argument: Archaeological evidence suggests that the collapse of the Ancient Indus Valley Civilization was primarily caused by a shift in monsoon patterns that dried up the Saraswati river, rather than by foreign invasion.
Which strengthens the theory?
Correct Answer: B
Rationale: The theory posits environmental causes (drought/river drying). Option B provides scientific geological evidence confirming a drought occurred at that exact time. Option A weakens the argument by suggesting war (invasion).
Rationale: The theory posits environmental causes (drought/river drying). Option B provides scientific geological evidence confirming a drought occurred at that exact time. Option A weakens the argument by suggesting war (invasion).
Q10. Course of Action Moderate
Situation: A manufacturing plant has leaked toxic chemicals into a nearby river… community is outraged… legal team advises silence… PR team advises immediate apology.
Which is the best first step?
Correct Answer: C
Rationale: In modern crisis management, especially environmental disasters with visible proof, silence or denial (A/B) destroys reputation permanently. Taking responsibility and focusing on cleanup (C) helps rebuild trust and mitigate long-term brand damage, which often outweighs immediate legal liability.
Rationale: In modern crisis management, especially environmental disasters with visible proof, silence or denial (A/B) destroys reputation permanently. Taking responsibility and focusing on cleanup (C) helps rebuild trust and mitigate long-term brand damage, which often outweighs immediate legal liability.
Q11. Assumption Moderate
Statement: “If the government truly cared about reducing traffic congestion, they would implement a congestion tax in the city center immediately.”
Assumption:
Correct Answer: B
Rationale: The statement links “caring about congestion” directly to “implementing tax.” It assumes that the tax is the definitive solution. If there were other better ways to reduce traffic, the government could “care” but choose a different method. The speaker assumes the tax is necessary for the goal.
Rationale: The statement links “caring about congestion” directly to “implementing tax.” It assumes that the tax is the definitive solution. If there were other better ways to reduce traffic, the government could “care” but choose a different method. The speaker assumes the tax is necessary for the goal.
Q12. Arrangement Hard
Six executives—P, Q, R, S, T, and U—are sitting in a row facing North.
• P is fourth to the left of U.
• U is not at the end of the row.
• R is an immediate neighbor of P.
• T is third to the right of S.
• S is not an immediate neighbor of U.
• P is fourth to the left of U.
• U is not at the end of the row.
• R is an immediate neighbor of P.
• T is third to the right of S.
• S is not an immediate neighbor of U.
Who sits at the extreme left end?
Correct Answer: A
Rationale:
1. P is 4th left of U. (P _ _ _ U).
2. U is not at the end. In a 6-person row, if U were at position 6 (right end), P would be at 2. But U cannot be at the end. So U must be at 5, and P must be at 1.
Arrangement: P _ _ _ U _
3. R is neighbor of P. Only spot 2 is available. -> P R _ _ U _
4. T is 3rd right of S. (S _ _ T). The only open spots are 3, 4, 6. If S is at 3, T is at 6. If S is at 4, T cannot fit. So S is at 3, T is at 6.
Final: P R S Q U T (Q is the remainder).
Extreme Left is P.
Rationale:
1. P is 4th left of U. (P _ _ _ U).
2. U is not at the end. In a 6-person row, if U were at position 6 (right end), P would be at 2. But U cannot be at the end. So U must be at 5, and P must be at 1.
Arrangement: P _ _ _ U _
3. R is neighbor of P. Only spot 2 is available. -> P R _ _ U _
4. T is 3rd right of S. (S _ _ T). The only open spots are 3, 4, 6. If S is at 3, T is at 6. If S is at 4, T cannot fit. So S is at 3, T is at 6.
Final: P R S Q U T (Q is the remainder).
Extreme Left is P.
Q13. Data Logic Easy
A company has two divisions, A and B. Division A showed a profit of 20% on a revenue of 1 million dollars. Division B showed a loss of 10% on a revenue of 2 million dollars.
What is the net profit/loss percentage for the entire company?
Correct Answer: A
Rationale:
Div A Profit: 20% of $1M = +$200,000.
Div B Loss: 10% of $2M = -$200,000.
Net Profit/Loss = +200k – 200k = $0.
Total Revenue = $3M. Net outcome is 0% (Break Even).
Rationale:
Div A Profit: 20% of $1M = +$200,000.
Div B Loss: 10% of $2M = -$200,000.
Net Profit/Loss = +200k – 200k = $0.
Total Revenue = $3M. Net outcome is 0% (Break Even).
Q14. Weaken Moderate
Argument: High tuition fees at prestige universities are justified because graduates from these institutions earn significantly higher lifetime salaries than graduates from public universities.
Which weakens?
Correct Answer: B
Rationale: The argument assumes Causation (Education -> Salary). Option B introduces an Alternative Cause (Family wealth -> Salary), implying the expensive education adds no value to the earnings, thus destroying the justification for high fees.
Rationale: The argument assumes Causation (Education -> Salary). Option B introduces an Alternative Cause (Family wealth -> Salary), implying the expensive education adds no value to the earnings, thus destroying the justification for high fees.
Section C: Managerial Ability (6 Questions)
Q15. Ethical Dilemma Moderate
You are a Regional Manager. You discover that your top-performing Sales Director… has been artificially inflating sales figures (channel stuffing). Firing him will likely cause you to miss your annual targets and lose your bonus.
What should you do?
Correct Answer: C
Rationale: This is a clear case of financial fraud (channel stuffing). A and B make you complicit in the fraud. D is illegal. C is the only ethical and legally sound option, despite the short-term financial pain. Integrity is the core competency tested here.
Rationale: This is a clear case of financial fraud (channel stuffing). A and B make you complicit in the fraud. D is illegal. C is the only ethical and legally sound option, despite the short-term financial pain. Integrity is the core competency tested here.
Q16. Business Strategy Moderate
A mid-sized software company is struggling to compete with a massive tech giant that has just released a free product… Your product is superior in customization but the competitor has 100x more distribution.
Best decision?
Correct Answer: B
Rationale: You cannot win a price war (A) or marketing war (D) against a giant with deeper pockets. Litigation (C) is slow and uncertain. The best strategy is differentiation. Focus on what the giant cannot do well (customization/support) for a specific audience willing to pay for it (Niche Strategy).
Rationale: You cannot win a price war (A) or marketing war (D) against a giant with deeper pockets. Litigation (C) is slow and uncertain. The best strategy is differentiation. Focus on what the giant cannot do well (customization/support) for a specific audience willing to pay for it (Niche Strategy).
Q17. Leadership Moderate
You have just taken over a team that is demoralized because their previous manager was a micromanager… However, the team is also currently missing deadlines.
Best response?
Correct Answer: C
Rationale: This approach balances the need for performance (deadlines) with the need to fix the culture (autonomy). It addresses the root cause of demoralization without sacrificing accountability.
Rationale: This approach balances the need for performance (deadlines) with the need to fix the culture (autonomy). It addresses the root cause of demoralization without sacrificing accountability.
Q18. Crisis Management Hard
A video surfaces of your company’s CEO making culturally insensitive remarks… Calls for a boycott are trending…
First step?
Correct Answer: B
Rationale: Option B is the gold standard for crisis PR. It validates public concern, commits to finding the truth (investigation), and takes immediate action (stepping aside) to protect the brand while the facts are verified. A, C, and D risk inflaming the situation further.
Rationale: Option B is the gold standard for crisis PR. It validates public concern, commits to finding the truth (investigation), and takes immediate action (stepping aside) to protect the brand while the facts are verified. A, C, and D risk inflaming the situation further.
Q19. Decision Under Uncertainty Moderate
Invest $10M: 20% chance of $100M, 80% chance of $0. OR Treasury bond with guaranteed $500k. Company faces a liquidity crunch and cannot afford to lose the principal.
Best option?
Correct Answer: B
Rationale: While the Expected Value of Option A ($20M) is mathematically higher than Option B ($10.5M), the constraint “cannot afford to lose the principal” makes Option A unacceptable due to the 80% risk of ruin (“Gambler’s Ruin”). Survival takes precedence over potential profit in a liquidity crunch.
Rationale: While the Expected Value of Option A ($20M) is mathematically higher than Option B ($10.5M), the constraint “cannot afford to lose the principal” makes Option A unacceptable due to the 80% risk of ruin (“Gambler’s Ruin”). Survival takes precedence over potential profit in a liquidity crunch.
Q20. HR & Culture Hard
Employee ‘A’ is brilliant but refuses to mentor or document work (single point of failure)… refuses to change.
Best action?
Correct Answer: C
Rationale: A single point of failure is a massive organizational risk. Allowing ‘A’ to hold knowledge hostage (D) or rewarding bad behavior (A) is poor management. Option C formalizes the expectation (KPI) and creates consequences for non-compliance, prioritizing the organization’s long-term health over one individual’s ego.
Rationale: A single point of failure is a massive organizational risk. Allowing ‘A’ to hold knowledge hostage (D) or rewarding bad behavior (A) is poor management. Option C formalizes the expectation (KPI) and creates consequences for non-compliance, prioritizing the organization’s long-term health over one individual’s ego.
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