TANCET Model Question paper for MBA

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PASSAGE – I (Questions 1 – 10)
The Shop-O-shelf Company's supermarkets are situated in Bangalore, Coimbatore and Vellore. The company
is dynamic and aggressive having grown from 8 stores ten years ago to 26 today.
Kanchipuram is a town 60 miles from Vellore. It has not shown the spectacular growth of other suburbs, but its
population has increased from around 56,000 to 1, 30,000 in the past decade. With no other Shop-O-Self
supermarket within 20 miles of the area, Shop-O-Self Company is considering opening a store in
Kanchipuram.
The Arguments against: some Shop-O-Self executives oppose the project as a poor risk. They point to the
proposed site, which is in a shopping centre three miles from Kanchipuram business district. Two other food
chains have failed on this site because they claim; most new residences are on the other side of the
community.
Moreover, the shopping centre owners demand a five year lease. Shop-O-Self would have to try to find
another business to take over the lease should its own store fail before the end of that time.
If a Shop-O-Self market must be opened in Kanchipuram, it would be far better, these executives argue, to
build it in the heart of the community. But they point out, another supermarket is already there.
The Arguments for: The Majority of the executives maintain that the site has great potential. A new east-west
highway is being built which will pass Kanchipuram to the north and force the car commuters to Kanchipuram
to pass by the shopping centre. A housing project of 3, 000 units is going to be constructed nearby. The
average household is expected to consist of five people with over Rs. 30,000 of income to dispose of
annually.
They also argue that the centre of Kanchipuram is now congested with traffic and has extremely poor parking
facilities, while there is excellent parking in the shopping centre. Investment in a new building in Kanchipuram,
proper than a five year lease should the store fail.
They are not too concerned about the other supermarket in Kanchipuram. There is enough business for both.
Besides, the competitor's prices are higher than shop-o-self.
They also discount past supermarket failures in the shopping certre. They claim these were caused more by
poor management than by the shopping centre's being slightly off the beaten path.
The Decision: The board of directors listens to both sides and then votes to open a Shop-o-self store at the
Kanchipuram shopping centre.

1. The residents at the projected residential development will shop in the Kanchipuram store
(a) If the item is a Major Objective in making the decision: that is, the outcome or result sought by
the decision maker
(b) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned
in the passage that is basic in determining the decision
(c) If the item is a Minor Factor in making the decision: a less important element bearing on or
affecting a Major Factor, rather than a Major Objective directly.
(d) If the item is a Major Assumption made deliberately; that is a supposition or projection made by
the decision maker before considering the factors and alternatives.
(e) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not
immediately relevant to the situation.

2. Poor management causing past supermarket failures.
(a) If the item is a Major Objective in making the decision: that is, the outcome or result sought by
the decision maker.
(b) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned
in the passage that is basic in determining the decision.
(c) If the item is a Minor Factor in making the decision: a less important element bearing on or
affecting a Major Factor, rather than a Major Objective directly.
(d) If the item is a Major Assumption made deliberately; that is a supposition or projection made by
the decision maker before considering the factors and alternatives.
(e) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not
immediately relevant to the situation.

3. New east-west highway.
(a) If the item is a Major Objective in making the decision: that is, the outcome or result sought by
the decision maker.
(b) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned
in the passage that is basic in determining the decision.
(c) If the item is a Minor Factor in making the decision: a less important element bearing on or
affecting a Major Factor, rather than a Major Objective directly.
(d) If the item is a Major Assumption made deliberately; that is a supposition or projection made by
the decision maker before considering the factors and alternatives.
(e) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not
immediately relevant to the situation.

4. Expansion of dynamic company.
(a) If the item is a Major Objective in making the decision: that is , the outcome or result sought by
the decision maker.
(b) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned
in the passage that is basic in determining the decision.
(c) If the item is a Minor Factor in making the decision: a less important element bearing on or
affecting a Major Factor, rather than a Major Objective directly.
(d) If the item is a Major Assumption made deliberately; that is a supposition or projection made by
the decision maker before considering the factors and alternatives.
(e) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not
immediately relevant to the situation.

5. Failure of two supermarkets due to poor site selection.
(a) If the item is a Major Objective in making the decision: that is , the outcome or result sought by
the decision maker.
(b) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned
in the passage that is basic in determining the decision.
(c) If the item is a Minor Factor in making the decision: a less important element bearing on or
affecting a Major Factor, rather than a Major Objective directly.
(d) If the item is a Major Assumption made deliberately; that is a supposition or projection made by
the decision maker before considering the factors and alternatives.
(e) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not
immediately relevant to the situation.

6. Establishing a new store
(a) If the item is a Major Objective in making the decision: that is, the outcome or result sought by
the decision maker.
(b) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned
in the passage that is basic in determining the decision.
(c) If the item is a Minor Factor in making the decision: a less important element bearing on or
affecting a Major Factor, rather than a Major Objective directly.
(d) If the item is a Major Assumption made deliberately; that is a supposition or projection made by
the decision maker before considering the factors and alternatives.
(e) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not
immediately relevant to the situation.

7. New housing development.
(a) If the item is a Major Objective in making the decision: that is , the outcome or result sought by
the decision maker.
(b) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned
in the passage that is basic in determining the decision.
(c) If the item is a Minor Factor in making the decision: a less important element bearing on or
affecting a Major Factor, rather than a Major Objective directly.
(d) If the item is a Major Assumption made deliberately; that is a supposition or projection made by
the decision maker before considering the factors and alternatives.
(e) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not
immediately relevant to the situation.

8. Car commuters will shop at Kanchipuram supermarket.
(a) If the item is a Major Objective in making the decision: that is, the outcome or result sought by
the decision maker.
(b) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned
in the passage that is basic in determining the decision.
(c) If the item is a Minor Factor in making the decision: a less important element bearing on or
affecting a Major Factor, rather than a Major Objective directly.
(d) If the item is a Major Assumption made deliberately; that is a supposition or projection made by
the decision maker before considering the factors and alternatives.
(e) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not
immediately relevant to the situation.

9. High disposable income of expected new residents.
(a) If the item is a Major Objective in making the decision: that is, the outcome or result sought by
the decision maker.
(b) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned
in the passage that is basic in determining the decision.
(c) If the item is a Minor Factor in making the decision: a less important element bearing on or
affecting a Major Factor, rather than a Major Objective directly.
(d) If the item is a Major Assumption made deliberately; that is a supposition or projection made by
the decision maker before considering the factors and alternatives.
(e) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not
immediately relevant to the situation

10. Kanchipuram's prices are lower than those of competitors.
(a) If the item is a Major Objective in making the decision: that is, the outcome or result sought by
the decision maker.
(b) If the item is a Major Factor in arriving at the decision; that is consideration, explicity mentioned
in the passage that is basic in determining the decision.
(c) If the item is a Minor Factor in making the decision: a less important element bearing on or
affecting a Major Factor, rather than a Major Objective directly.
(d) If the item is a Major Assumption made deliberately; that is a supposition or projection made by
the decision maker before considering the factors and alternatives.
(e) If the item is an unimportant issue in getting to the point; that is a factor that is insignificant or not
immediately relevant to the situation.

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