Directions(1-5): Read the passage and answer the questions that follow:
Business news does not repeat itself but it sometimes rhymes. In 2007 Walmart, America’s biggest grocer crowed that it would crack the coveted Indian market by being the first global retailer to set up shop there, pipping envious rivals in the process. On May 9th it announced much the same thing: its time in India has come, this time by virtue of paying $16bn for a majority stake in Flipkart, India’s largest e-commerce outfit, which had also been coveted by its vast online rival, Amazon. The sense of déjà vu owes to the fact that its original foray proved a disappointment. Walmart’s hopes of somehow circumventing rules to protect local shopkeepers, which have long prevented most foreign retailers from opening stores, have been repeatedly dashed. A decade on it has a meager 21 wholesale stores in India, generating just 0.1% of its $500bn in global revenues and a small loss to boot. Somehow that has not dissuaded the beast of Bentonville from undertaking the biggest foreign acquisition in Indian history.
The Indian e-commerce market is as different from America’s brick-and-mortar retail landscape as Walmart’s Arkansas home is from Bangalore. Walmart probably has too many stores in its mature home market. Flipkart operates online and in the quasi-virgin commercial territory: 95% of Americans shop at Walmart at least once a year, but only 5-10% of Indians have ever bought anything online. The deal is a departure in other ways, too. Walmart has already swooped on companies it thinks will help it grow its e-commerce presence. In 2016 it paid out $3bn for Jet.com, a putative rival to Amazon in America; it has also bagged Bonobos, a purveyor of tailored trousers. But Flipkart, which was founded in 2007 by two former Amazon employees, is in a different league in terms of the price tag.
Walmart will own around 77% of the company, which is valued at over $20bn in total. Even for Walmart, that is a lot of money: $20bn is roughly the cash it generates every year net of capital expenditure, say, or 8% of its market capitalization. Connoisseurs of the Indian tech scene have raised eyebrows at the price tag, given that Flipkart raised money at a valuation of under $12bn just a year ago. SoftBank, a Japanese telecoms and internet giant which became its biggest shareholder after investing $2.5bn just nine months ago, stands to walk away with $4bn. Walmart’s new acquisition will not produce quick returns. Analysts reckon Flipkart loses money on each shipment. Margins are unlikely to improve soon given Amazon’s incursion into the market (having committed $5bn to India, it probably ranks a close second to Flipkart, which is thought to account for just under half of India’s online sales). Paytm Mall, a newish rival backed by Alibaba of China, is also ambitious.
1. How would Walmart’s business in America be different from its Indian venture?
I. The business is America is mostly brick and mortar while it is online in nature in India. II. Walmart owns about 88% of the market share in America but hardly any in the Indian market. III. The market is vastly under-penetrated in India.

A. Only II B. Only I and II C. Only II and III D. Only I and III E. All of the above

Answer: Option D
Explanation: Refer to: ‘The Indian e-commerce market is as different from America’s brick-and-mortar retail landscape as Walmart’s Arkansas home is from Bangalore. Walmart probably has too many stores in its mature home market. Flipkart operates online and in the quasi-virgin commercial territory: 95% of Americans shop at Walmart at least once a year, but only 5-10% of Indians have ever bought anything online.’
2. Which of the following is/are true about Walmart’s performance in India before it bought a stake in Flipkart?
I. Its revenues from India form a very minuscule proportion of its total revenues. II. It has been successful in establishing a small number of retail and wholesale stores. III. It is brick and mortar business model were running in losses from the past 3 years in India.

A. Only I B. Only I and II C. Only II and III D. Only II E. None of the above

Answer: Option A
Explanation: Refer to: ‘A decade on it has a meager 21 wholesale stores in India, generating just 0.1% of its $500bn in global revenues and a small loss to boot. Somehow that has not dissuaded the beast of Bentonville from undertaking the biggest foreign acquisition in Indian history.’
3. What does the line- ‘Business news does not repeat itself but it sometimes rhymes’ refer to?

A. It refers to Walmart beating rivals in the e-commerce space. B. It refers to Walmart entering India via e-commerce to avoid getting caught up in the huge number of regulations India has imposed on retailers. C. It refers to Walmart’s entry in India via a majority stake buyout in Flipkart in 2018 after being unsuccessful in 2007. D. It refers to Walmart being the first global retailer to set up shop in India. E. None of the above

Answer: Option C
Explanation: This line refers to the fact that Walmart had plans to enter the Indian retail space n 2007 which did not see the light of the day. However, it has fulfilled its ambition of foraying into India’s e-commerce space via a majority stake buyout of Flipkart in 2018.
4. Which of the following is/are true as per the passage?
I. Softbank is the largest shareholder of Flipkart. II. India’s e-commerce market as a whole is worth about $15bn only. III. Indian regulations dictate that e-commerce sites must sell stuff mainly from third-parties rather than from their own inventory.

A. Only II B. Only I C. Only I and III D. Only II and III E. All of the above

Answer: Option B
Explanation: Refer to: ‘SoftBank, a Japanese telecoms and internet giant which became its biggest shareholder after investing $2.5bn just nine months ago, stands to walk away with $4bn.’
5. As per your understanding of the passage, which of the following shows that the decision by Walmart to enter Indian e-commerce may not be as lucrative as it appears to be?
I. Analysts reckon Flipkart loses money on each shipment and at one point it was thought to guzzle $2m a day subsidizing shipping and using discounts to lure buyers. II. Venture capitalists in India complain about the lack of exits from dozens of investments in the Indian e-commerce industry. III. The entire sector was flat in 2016 and grew at perhaps only 10% last year.

A. Only II B. Only I and II C. Only I and III D. Only II and III E. All of the above

Answer: Option E

Directions(1-5): Read the following passage and answer the questions that follows.
Despite the best efforts of those responsible for preventing fraud, one inevitable reality remains: “fraud happens.” Because fraud and misconduct can occur at various levels in any organization, it is essential that appropriate preventive and detective techniques are in place. Although fraud prevention and detection are related concepts, they are not the same. While prevention encompasses policies, procedures, training, and communication, detection involves activities and programs designed to identify fraud or misconduct that is occurring or has occurred. Although preventive measures cannot ensure that fraud will not be committed, they are the first line of defense in minimizing fraud risk. This section of the guide will cover preventive techniques. Detective techniques will be covered in Section 4. One key to prevention is making personnel throughout the organization aware of the fraud risk management program, including the types of fraud and misconduct that may occur. This awareness should enforce the notion that all of the techniques established in the program are real and will be enforced. The ongoing communication efforts could provide information on the potential disciplinary, criminal, and civil actions that the organization could take against the individual.With this in mind, prevention and deterrence are interrelated concepts. If effective preventive controls are in place, working, and well-known to potential fraud perpetrators, they serve as strong deterrents to those who might otherwise be tempted to commit fraud. Fear of getting caught is always a strong deterrent. Effective preventive controls are, therefore, strong deterrence controls. The system of internal controls in an organization is designed to address inherent business risks. The business risks are identified in the enterprise risk assessment protocol, and the controls associated with each risk are noted. COSO’s Enterprise Risk Management– Integrated Framework describes the essential ERM components, principles, and concepts for all organizations, regardless of size. Establishing internal controls may not address all of an organization’s fraud risks. Fraud risks, although a form of business risk, necessitate specific controls to mitigate them, which makes an organization’s fraud risk assessment process essential to fraud prevention. In addition to implementing fraud preventive controls, it is important that the organization assess and continuously monitor their operational effectiveness to help prevent fraud from occurring. Prevention is the most proactive fraud-fighting measure. The design and implementation of control activities should be a coordinated effort spearheaded by management with an assembled cast of employees. Collectively, this cross-section of the organization should be able to address all of the identified risks, design and implement the control activities, and ensure that the techniques used are adequate to prevent fraud from occurring in accordance with the organization’s risk tolerance. The ongoing success of any fraud prevention program depends on its continuous communication and reinforcement. Stressing the existence of a fraud prevention program through a wide variety of media — posters on bulletin boards, flyers included with invoices and vendor payments, and articles in internal and external communications — get the message out to both internal and external communities that the organization is committed to preventing and deterring fraud. Among the many elements in fraud prevention are HR procedures, authority limits, and transaction-level procedures. An organization’s HR function can play an important role in fraud prevention by implementing the following procedures. A key business and fraud risk in any organization lies in the people hired to operate the business and promoted into positions of trust and authority. For that reason, it is important to know employees in order to evaluate their credentials and competence, match skills to the job requirements, and be aware of any issues of personal integrity that may impact their suitability for the position. Much can be learned about an individual through the confirmation of work history and education presented on a job application or résumé or in follow-up with references provided. It is possible to find false or embellished information or undisclosed history and reputation that may represent increased, and possibly unacceptable, risk. While the organization should establish procedures to obtain sufficient information to assess a job applicant or promotion candidate, the nature and extent of information that can be requested from a prospective or existing employee or obtained independently is governed by applicable laws and regulations. Further or enhanced background checking for a criminal record or personal financial situation may only be possible upon receiving the individual’s consent. Legal counsel should be sought to advise on what background information can and cannot be obtained and the appropriate procedures to follow. Background checks should also be performed on new and existing suppliers, customers, and business partners to identify any issues of financial health, ownership, reputation, and integrity that may represent an unacceptable risk to the business.
1. According to the passage, what is the fundamental difference between fraud prevention and fraud detection?

A. Background checks should also be performed on new and existing suppliers, customers, and business partners to identify any issues of financial health, ownership, reputation, and integrity that may represent an unacceptable risk to the business. B. prevention means to stop something from happening, while detection means to figure out the cause of an action C. prevention is not to allow data exchange and detection is to identify the problem D. prevention encompasses policies, procedures, training, and communication, detection involves activities and programs designed to identify fraud E. None of these

Answer: Option D
2. What will be the appropriate title for this passage?

A. corruption and its repercussions B. fraud: analysis and recommendations C. fraud: prevention and detection D. corruption and hierarchy E. None of these

Answer: Option C
3. How the HR department of an organization can play a vital role in the prevention of fraud in the company?

A. by announcing yearly appraisal and spreading the goodwill among the employees B. by highlighting the activities that are unfavorable in terms of finance C. by evaluating employee’s credentials and competence, and being aware of any issues of personal integrity, confirmation of work history and education presented on a job application D. the company can hire a detective to understand the fraud patterns E. None of these

Answer: Option C
4. What is the strong deterrent for fraud according to this passage?

A. the fear of getting caught B. the fear of not getting paid C. the feeling of being marginalized D. the HR policies and its repercussions E. None of these

Answer: Option A
5. Apart from the employees, who are the other entities that have been suggested to keep a watch on for fraud purposes?

A. the lower-class employees and the transport department of the organization B. on new and existing suppliers, customers, and business partners to identify any issues of fraud C. the foreign members for hawala money and other transactions D. high echelon and lower strata of the organization E. None of these

Answer: Option B

Directions(1-5): Read the following passage and answer the questions that follows.
The fines paid to America’s financial regulators by errant bankers vary enormously these days: from sky-high to stratospheric. Deutsche Bank is fighting a demand for $14bn. BNP Paribas paid $9bn last year for facilitating the evasion of American sanctions. So eyebrows were raised at the final settlement disclosed this month between the state-controlled Agricultural Bank of China (ABC) and New York’s Department of Financial Services (DFS). The fine imposed on the bank was a mere $215m.
The comparative leniency towards ABC is probably a consequence of a failure to prove that many illegal transactions took place. But that by itself produced unresolved suspicions; compliance systems made transfers untraceable. In 2014 a new compliance officer at the two-year-old New York branch reported finding an “alarming” pattern of transactions; 20-30% were “virtually impervious to screening” for sanction violations.
In the “alarming” category were large transfers between Chinese companies and companies in Russia and Yemen; dollar-denominated payments from the United Arab Emirates; and dollar transfers from a Turkish bank to an Afghan one with ties to drug-traffickers. Invoices were suspected of being counterfeit. Documents suggested dealings on behalf of “a sanctioned Iranian party”.
Alerted by the compliance officer, the New York Fed sent a letter in February 2015 noting concerns about money-laundering and other related risks. ABC responded by curtailing the compliance officer’s independence. By June, he was gone; most of his department soon followed. DFS examiners, arriving in July, found an “unmanageable” backlog of alerts for suspicious transactions. In 2014 DFS had warned ABC not to increase the volume of transactions until it had tightened its compliance functions. But the volume had almost trebled to $72bn in the first half of 2015 compared with a year earlier, creating what DFS called “untenable risk”. (BNP Paribas’s troubles stemmed from the transfer of $9bn.)
There may be many reasons why ABC seemed to get off lightly. But the sometimes chatty regulators are mum. One said it could not comment because the issues involve confidential supervisory information. The silence does nothing to quell doubtless unfounded gossip that ABC benefited from the fear of a diplomatic spat with its owner, the government of China.
1. What, according to the context of the passage, is true about the Agricultural Bank of China? i. The fine imposed on the bank was a mere $215m. ii. The govt. of China was lenient towards ABC iii. the volume of transactions of ABC got trebled in the second half of 2015

A. Only i B. Only ii C. Both i and ii D. Both i and iii E. None of these

Answer: Option C
2. What is the meaning of the term “untenable risk”?

A. unknown threat B. unacceptable peril C. unavoidable danger D. important risk E. None of these

Answer: Option B
3. Explain the term “chatty regulators are mum”.

A. Regulators are talkative as well as mum B. regulators are secretive C. regulators readily engage in chatting D. Other than the given options E. None of these

Answer: Option D
4. What is the most appropriate synonym of the word “spat”:

A. boo B. squabble C. accomodation D. admonish E. None of these

Answer: Option B
5. What is False, according to the context of the passage?

A. DFS had warned ABC not to increase the volume of transactions B. Documents suggested dealings on behalf of “a sanctioned Iranian party” C. ABC benefited from the fear of a diplomatic spat with its owner D. the New York Fed sent a letter in February 2015 noting concerns about money-laundering E. None of these

Answer: Option E