Business, Economy & Corporate World Previous Year Questions (PYQs) for XAT: 8+ Solved Questions with Step-by-Step Solutions

    Solve 8+ Business, Economy & Corporate World previous year questions for XAT with answers and detailed solutions. Free sample questions below.

    Chapter Roadmap: Business, Economy & Corporate World

    Chapter Roadmap

    Your structured journey through the modern business landscape.

    1
    Business Terminology & Startup Ecosystem (Current Topic)
    Master startup classifications, gig economy dynamics, and modern business strategies like shrinkflation.
    Importance: High (0.68)
    2
    Economy, Corporate Leaders & Advertising
    Understand macroeconomic indicators, iconic ad campaigns, and corporate leadership biographies.
    Importance: Very High (0.78)

    Business Terminology & Startup Ecosystem

    Business Terminology & Startup Ecosystem

    This topic covers the foundational vocabulary of the modern business world, frequently tested to assess your awareness of contemporary corporate trends.

    Distinguish between different types of startups and valuation metrics
    Understand the mechanics and legal standing of the gig economy
    Decode market terminologies like the grey market
    Recognize strategic business practices such as shrinkflation

    Business, Economy & Corporate World: Solved Questions with Step-by-Step Explanations (5 Problems)

    Question 1 · General Knowledge (GK) MCQ

    Identify the sectors into which the Indian economy is divided, for the calculation of GDP?

    1. A.

      Agriculture, Manufacturing and Services

    2. B.

      Government, Private and Social

    3. C.

      Agriculture, Manufacturing and E-commerce

    4. D.

      Agriculture, Defence, Information Technology and Manufacturing

    5. E.

      Primary and non-primary

    Correct Answer:

    A

    Step-by-Step Solution

    Key idea: This is a factual recall question about the macroeconomic classification of the Indian economy for GDP calculation.

    Step 1: Recall how the National Statistical Office (NSO) classifies economic activities for GDP estimation.

    Step 2: The three broad sectors are Primary, Secondary, and Tertiary.

    Step 3: Map these formal terms to their common industry representations:

    • Primary sector Agriculture (and allied activities, mining).
    • Secondary sector Manufacturing (and construction, utilities).
    • Tertiary sector Services (IT, banking, retail, transport).

    Step 4: Evaluate the options. "Agriculture, Manufacturing and Services" directly corresponds to the Primary, Secondary, and Tertiary sectors.

    Answer: A

    Question 2 · General Knowledge (GK) MCQ

    Which price index is being used to measure in ation by the Reserve Bank of India?

    1. A.

      Industrial Cost and Price Indices

    2. B.

      GDP De ator

    3. C.

      Consumer Price Index

    4. D.

      Purchasing Power Parity based Index

    5. E.

      Wholesale Price Index

    Correct Answer:

    C

    Step-by-Step Solution

    Key idea: This is a factual recall question regarding the macroeconomic indicators used by India's central bank for monetary policy.

    Step 1: Identify the institution and its goal. The Reserve Bank of India (RBI) is responsible for monetary policy, which includes controlling inflation.

    Step 2: Recall the historical shift. Prior to 2014, the RBI primarily used the Wholesale Price Index (WPI). However, based on the recommendations of the Urjit Patel Committee, the RBI adopted the Consumer Price Index (CPI) as the nominal anchor for monetary policy.

    Step 3: Evaluate the options. CPI measures the average change in prices paid by consumers for a basket of goods and services, making it the most accurate reflection of the cost of living and the primary target for inflation control.

    Answer: C

    Question 3 · General Knowledge (GK) MCQ

    Who, among the following, is credited for designing the following ad campaigns: "Kuch khaas hai...zindagi mein" (Cadbury's), "Fevicol ka mazboot jod hai, tootega nahin" (Fevicol), and "Har ghar kuch kehta hai" (Asian Paints)?

    1. A.

      Alyque Padamsee

    2. B.

      Rajiv Rao

    3. C.

      Sonal Dabral

    4. D.

      Prasoon Joshi

    5. E.

      Piyush Pandey

    Correct Answer:

    E

    Step-by-Step Solution

    Key idea: This is a factual recall question about iconic Indian advertising campaigns and their creators.

    Step 1: Identify the campaigns mentioned: "Kuch khaas hai...zindagi mein" (Cadbury's), "Fevicol ka mazboot jod hai, tootega nahin" (Fevicol), and "Har ghar kuch kehta hai" (Asian Paints).

    Step 2: Recall the advertising executive most famously associated with these culturally resonant, insight-driven campaigns in India.

    Step 3: Piyush Pandey, the former Executive Chairman and Creative Director of Ogilvy India, is widely credited with creating these specific campaigns, which revolutionized Indian advertising by using local insights and vernacular storytelling.

    Answer: E

    Question 4 · General Knowledge (GK) MCQ

    Which term is commonly used to describe the strategy employed by firms where they reduce the product size or quality while maintaining the same price?

    1. A.

      Reduflation

    2. B.

      Skimpflation

    3. C.

      Shrinkflation

    4. D.

      Inflation

    5. E.

      Deflation

    Correct Answer:

    C

    Step-by-Step Solution

    Key idea: This is a definition-based question testing knowledge of modern pricing strategies and economic buzzwords.

    Step 1: Analyze the described strategy: reducing product size or quality while keeping the price the same.

    Step 2: Match the strategy to its specific term. This practice is widely known as "shrinkflation" (a portmanteau of shrink and inflation). It allows companies to maintain profit margins during periods of rising input costs without visibly raising the sticker price.

    Step 3: Evaluate the options. "Skimpflation" refers specifically to reducing quality or service levels, but "shrinkflation" is the most common and broadly recognized term for reducing size/quantity. "Reduflation" is not a standard term.

    Answer: C

    Question 5 · General Knowledge (GK) MCQ

    Match the famous CEOs with the title of their biographies.

    1. A.

      A1, B2, C3, D4

    2. B.

      A3, B2, C1, D4

    3. C.

      A4, B3, C1, D2

    4. D.

      A1, B3, C4, D2

    5. E.

      A2, B1, C4, D3

    Correct Answer:

    B

    Step-by-Step Solution

    Key idea: This is a matching question testing knowledge of famous corporate leaders and their notable biographies or autobiographies.

    Step 1: Identify the authors/CEOs and their known books.

    Step 2: Indra Nooyi (former CEO of PepsiCo) authored the autobiography "My Life in Full: Work, Family, and Our Future". (A -> 3)

    Step 3: Gregory Zuckerman wrote "The Man Who Solved the Market", which is the biography of Jim Simons (founder of Renaissance Technologies). While Zuckerman is the author, the question associates him with this title. (B -> 2)

    Step 4: Peter Thiel (co-founder of PayPal) is the author of "Zero to One: Notes on Startups, or How to Build the Future". (C -> 1)

    Step 5: Sheryl Sandberg (former COO of Meta) authored the bestselling book "Lean In: Women, Work, and the Will to Lead". (D -> 4)

    Step 6: Match the sequence: A-3, B-2, C-1, D-4.

    Answer: B

    More previous year questions (pyqs) in this unit

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    Business, Economy & Corporate World Previous Year Questions (PYQs) for XAT: 8+ Solved Questions with Step-by-Step Solutions

    Solve 8+ Business, Economy & Corporate World previous year questions for XAT with answers and detailed solutions. Free sample questions below.

    A question from this chapter

    Question 1

    Identify the sectors into which the Indian economy is divided, for the calculation of GDP?

    Question 2

    Which price index is being used to measure in ation by the Reserve Bank of India?

    Question 3

    Who, among the following, is credited for designing the following ad campaigns: "Kuch khaas hai...zindagi mein" (Cadbury's), "Fevicol ka mazboot jod hai, tootega nahin" (Fevicol), and "Har ghar kuch kehta hai" (Asian Paints)?

    Question 4

    Which term is commonly used to describe the strategy employed by firms where they reduce the product size or quality while maintaining the same price?

    Question 5

    Match the famous CEOs with the title of their biographies.

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