Business, Work & Professional Life Previous Year Questions (PYQs) for XAT: 8+ Solved Questions with Step-by-Step Solutions

    Solve 8+ Business, Work & Professional Life previous year questions for XAT with answers and detailed solutions. Free sample questions below.

    Chapter Roadmap: Business, Work & Professional Life

    Chapter Journey

    1
    The Nature of Work
    Distinguishing between the biological necessity of labour and the meaning-giving nature of work.
    2
    Entrepreneurship & Risk
    Analyzing psychological barriers to risk, the celebration of failure, and the taboo of pay cuts.
    3
    Cognitive Failings in Leadership
    Understanding stupidity as a lack of conceptual tools that leads to distorting reality.
    4
    Professional Communication
    Decoding the philosophical distinction between lying and bullshit.

    Topic Hero: Decoding Business & Workplace Dynamics

    Decoding Business & Workplace Dynamics

    The Core Challenge

    Passages test your understanding of human behavior, organizational psychology, and the philosophical underpinnings of professional life, not just economics.

    The Trap
    Using colloquial meanings for familiar terms like 'work' or 'stupidity' instead of the author's specific definitions.
    The Strategy
    Map how the author uses case studies to illustrate abstract concepts about human cognition and conduct.

    Business, Work & Professional Life: Solved Questions with Step-by-Step Explanations (5 Problems)

    Question 1 · Verbal Ability and Logical Reasoning (VALR) MCQ

    Common Description:

    Read the passage carefully and answer the THREE questions that follow.

    Comprehension: What bullshit essentially misrepresents is neither the state of affairs to which it refers nor the beliefs of the speaker concerning that state of affairs. Those are what lies misrepresent, by virtue of being false. Since bullshit need not be false, it differs from lies in its misrepresentational intent. The bullshitter may not deceive us, or even intend to do so, either about the facts or about what he takes the facts to be. What he does necessarily attempt to deceive us about is his enterprise. His only indispensably distinctive characteristic is that in a certain way he misrepresents what he is up to. This is the crux of the distinction between him and the liar. Both he and the liar represent themselves falsely as endeavoring to communicate the truth. The success of each depends upon deceiving us about that. But the fact about himself that the liar hides is that he is attempting to lead us away from a correct apprehension of reality; we are not to know that he wants us to believe something he supposes to be false. The fact about himself that the bullshitter hides, on the other hand, is that the truth-values of his statements are of no central interest to him; what we are not to understand is that his intention is neither to report the truth nor to conceal it. This does not mean that his speech is anarchically impulsive, but that the motive guiding and controlling it is unconcerned with how the things about which he speaks truly are. It is impossible for someone to lie unless he thinks he knows the truth. Producing bullshit requires no such conviction. A person who lies is thereby responding to the truth, and he is to that extent respectful of it. When an honest man speaks, he says only what he believes to be true; and for the liar, it is correspondingly indispensable that he considers his statements to be false.

    Which of the following statements can be BEST inferred from the passage?

    1. A.

      Both the liar and the bullshitter misrepresent the truth

    2. B.

      Both the liar and the bullshitter intend to deceive in their own ways

    3. C.

      Both the liar and the bullshitter are guided by the truth

    4. D.

      Both the liar and the bullshitter live in their own worlds of realities

    5. E.

      Both the liar and the bullshitter are not bound by any conviction

    Correct Answer:

    B

    Step-by-Step Solution

    Key idea: This is an inference question testing the ability to identify the common denominator in the author's philosophical distinction between two concepts.

    Step 1: Analyze the passage's definition of the liar. The liar attempts to lead us away from reality and hides the fact that they want us to believe something false.

    Step 2: Analyze the passage's definition of the bullshitter. The bullshitter hides the fact that truth-values are of no central interest to them; their intention is neither to report nor conceal truth.

    Step 3: Identify the shared trait. The passage explicitly states: "Both he and the liar represent themselves falsely as endeavoring to communicate the truth. The success of each depends upon deceiving us about that."

    Step 4: Evaluate Option A. The passage states bullshit "need not be false," so saying both "misrepresent the truth" is inaccurate for the bullshitter, who may accidentally say something true.

    Step 5: Evaluate Option B. Both intend to deceive us about their enterprise/intent (the liar about their goal to mislead, the bullshitter about their indifference to truth). This matches the text perfectly.

    Step 6: Evaluate Option C. The bullshitter is explicitly "unconcerned with how the things about which he speaks truly are," so they are not guided by the truth.

    Step 7: Evaluate Option D. "Living in their own worlds" is a vague metaphor not supported by the precise philosophical definitions provided.

    Step 8: Evaluate Option E. The liar is bound by the conviction of knowing the truth (to lie about it), so they are not entirely unbound by conviction.

    Answer: Option B.

    Question 2 · Verbal Ability and Logical Reasoning (VALR) MCQ

    Common Description:

    Recently, a team of social scientists launched an experiment to test that hypothesis. They recruited 1,500 entrepreneurs in West Africa—a mix of women and men in their 30s, 40s, and 50s—who were running small startups in manufacturing, service, and commerce. They randomly assigned the founders to one of three groups. One was a control group: they went about their business as usual. The other two were training groups: they spent a week learning new concepts, analyzing them in case studies of other entrepreneurs, and applying them to their own startups through role-play and reflection exercises. What differed was whether the training focused on cognitive skills or character skills. In cognitive skills training, the founders took an accredited business course created by the International Finance Corporation. They studied finance, accounting, HR, marketing, and pricing, and practiced using what they learned to solve challenges and seize opportunities. In character skills training, the founders attended a class designed by psychologists to teach personal initiative.

    They studied proactivity, discipline, and determination, and practiced putting those qualities into action.

    Character skills training had a dramatic impact. After founders had spent merely five days working on these skills, their firms’ profits grew by an average of 30 percent over the next two years. That was nearly triple the benefit of training in cognitive skills. Finance and marketing knowledge might have equipped founders to capitalize on opportunities, but studying proactivity and discipline enabled them to generate opportunities. They learned to anticipate market changes rather than react to them. They developed more creative ideas and introduced more new products. When they encountered financial obstacles, instead of giving up, they were more resilient and resourceful in seeking loans. Along with demonstrating that character skills can propel us to achieve greater things, this evidence reveals that it’s never too late to build them... Character doesn’t set like plaster—it retains its plasticity. Character is often confused with personality, but they’re not the same.

    Personality is your predisposition—your basic instincts for how to think, feel, and act. Character is your capacity to prioritize your values over your instincts. Knowing your principles doesn’t necessarily mean you know how to practice them, particularly under stress or pressure. It’s easy to be proactive and determined when things are going well. The true test of character is whether you manage to stand by those values when the deck is stacked against you. If personality is how you respond on a typical day, character is how you show up on a hard day.

    Personality is not your destiny—it’s your tendency. Character skills enable you to transcend that tendency to be true to your principles. It’s not about the traits you have—it’s what you decide to do with them. Wherever you are today, there’s no reason why you can’t grow your character skills starting now.

    Which of the following views would the author BEST agree with?

    1. A.

      Putting our values and principles to practice requires transcending our personality.

    2. B.

      Our values and principles are always put to test by our personality.

    3. C.

      Our behavior is a function of our character not our personality.

    4. D.

      Character skills risk abandoning your personality along with your instincts.

    5. E.

      Because principles clash with your personality, character is needed.

    Correct Answer:

    A

    Step-by-Step Solution

    Key idea: This is an inference question testing the ability to extract the author's core philosophical stance on the relationship between personality and character.

    Step 1: Locate the definitions. Personality = predisposition, basic instincts, tendency. Character = capacity to prioritize values over instincts, how you show up on a hard day.

    Step 2: Locate the relationship. The passage states: "Character skills enable you to transcend that tendency [personality] to be true to your principles."

    Step 3: Evaluate Option A. "Putting our values and principles to practice requires transcending our personality." This is a direct paraphrase of "transcend that tendency to be true to your principles."

    Step 4: Evaluate Option B. The passage says character is tested when the deck is stacked, not that personality itself is the tester.

    Step 5: Evaluate Option C. The passage says character enables you to transcend personality, not that behavior is solely a function of character and not personality. Personality is still your "tendency."

    Step 6: Evaluate Option D. The passage does not suggest character "abandons" personality or instincts; it prioritizes values over them.

    Step 7: Evaluate Option E. The passage does not state that principles and personality inherently "clash"; it says character is the capacity to prioritize principles when it is difficult.

    Answer: Option A.

    Question 3 · Verbal Ability and Logical Reasoning (VALR) MCQ

    Common Description:

    Read the passage carefully and answer the THREE questions that follow.

    Comprehension: Stupidity is a very speci c cognitive failing. Crudely put, it occurs when you don’t have the right conceptual tools for the job. The result is an inability to make sense of what is happening and a resulting tendency to force phenomena into crude, distorting pigeonholes.

    This is easiest to introduce with a tragic case. British high command during the First World War frequently understood trench warfare using concepts and strategies from the cavalry battles of their youth. As one of Field Marshal Douglas Haig’s subordinates later remarked, they thought of the trenches as ‘mobile operations at the halt’: i.e., as uid battle lines with the simple caveat that nothing in fact budged for years. Unsurprisingly, this did not serve them well in formulating a strategy: they were hampered, beyond the shortage of material resources, by a kind of ‘conceptual obsolescence’, a failure to update their cognitive tools to t the task in hand.

    In at least some cases, intelligence actively abets stupidity by allowing pernicious rationalisation.

    Stupidity will often arise in cases like this, when an outdated conceptual framework is forced into service, mangling the user’s grip on some new phenomenon. It is important to distinguish this from mere error. We make mistakes for all kinds of reasons. Stupidity is rather one speci c and stubborn cause of error. Historically, philosophers have worried a great deal about the irrationality of not taking the available means to achieve goals: Tom wants to get t, yet his running shoes are quietly gathering dust. The stock solution to Tom’s quandary is simple willpower. Stupidity is very different from this. It is rather a lack of the necessary means, a lack of the necessary intellectual equipment. Combatting it will typically require not brute willpower but the construction of a new way of seeing our self and our world. Such stupidity is perfectly compatible with intelligence: Haig was by any standard a smart man.

    Based on the passage, which of the following can BEST help a leader avoidstupidity?

    1. A.

      Be ready to discuss with everyone before taking a decision

    2. B.

      Being aware that our current answers are only applicable to the current context

    3. C.

      Being aware that we are short of the required resources

    4. D.

      Be cautious in taking a decision until the future unfolds

    5. E.

      Being aware that we must handle future with a different cognitive tool

    Correct Answer:

    B

    Step-by-Step Solution

    Key idea: This is an inference/application question testing the ability to derive a practical solution from the author's definition of a problem.

    Step 1: Identify the problem. The passage defines stupidity as using an "outdated conceptual framework" for a "new phenomenon" and a "failure to update their cognitive tools."

    Step 2: Identify the proposed solution in the text. The passage states: "Combatting it will typically require not brute willpower but the construction of a new way of seeing our self and our world."

    Step 3: Evaluate Option A. Discussing with everyone is a procedural step, not a cognitive tool update. Out of scope.

    Step 4: Evaluate Option B. "Being aware that our current answers are only applicable to the current context" directly addresses the "conceptual obsolescence" trap. It is the first step in constructing a "new way of seeing."

    Step 5: Evaluate Option C. The passage mentions "shortage of material resources" as a separate issue from conceptual obsolescence.

    Step 6: Evaluate Option D. Caution until the future unfolds is passive and does not address the active need to "construct a new way of seeing."

    Step 7: Evaluate Option E. While close, it assumes we must handle the future with a different tool, but the core issue is recognizing the limitation of the current tool in the current new context. Option B is the foundational awareness required to avoid the failing.

    Answer: Option B.

    Question 4 · Verbal Ability and Logical Reasoning (VALR) MCQ

    Common Description:

    Recently, a team of social scientists launched an experiment to test that hypothesis. They recruited 1,500 entrepreneurs in West Africa—a mix of women and men in their 30s, 40s, and 50s—who were running small startups in manufacturing, service, and commerce. They randomly assigned the founders to one of three groups. One was a control group: they went about their business as usual. The other two were training groups: they spent a week learning new concepts, analyzing them in case studies of other entrepreneurs, and applying them to their own startups through role-play and reflection exercises. What differed was whether the training focused on cognitive skills or character skills. In cognitive skills training, the founders took an accredited business course created by the International Finance Corporation. They studied finance, accounting, HR, marketing, and pricing, and practiced using what they learned to solve challenges and seize opportunities. In character skills training, the founders attended a class designed by psychologists to teach personal initiative.

    They studied proactivity, discipline, and determination, and practiced putting those qualities into action.

    Character skills training had a dramatic impact. After founders had spent merely five days working on these skills, their firms’ profits grew by an average of 30 percent over the next two years. That was nearly triple the benefit of training in cognitive skills. Finance and marketing knowledge might have equipped founders to capitalize on opportunities, but studying proactivity and discipline enabled them to generate opportunities. They learned to anticipate market changes rather than react to them. They developed more creative ideas and introduced more new products. When they encountered financial obstacles, instead of giving up, they were more resilient and resourceful in seeking loans. Along with demonstrating that character skills can propel us to achieve greater things, this evidence reveals that it’s never too late to build them... Character doesn’t set like plaster—it retains its plasticity. Character is often confused with personality, but they’re not the same.

    Personality is your predisposition—your basic instincts for how to think, feel, and act. Character is your capacity to prioritize your values over your instincts. Knowing your principles doesn’t necessarily mean you know how to practice them, particularly under stress or pressure. It’s easy to be proactive and determined when things are going well. The true test of character is whether you manage to stand by those values when the deck is stacked against you. If personality is how you respond on a typical day, character is how you show up on a hard day.

    Personality is not your destiny—it’s your tendency. Character skills enable you to transcend that tendency to be true to your principles. It’s not about the traits you have—it’s what you decide to do with them. Wherever you are today, there’s no reason why you can’t grow your character skills starting now.

    Based on the passage, why would character skills help entrepreneurs more than cognitive skills?

    1. A.

      Character skills are industry agnostic in application.

    2. B.

      One can be poor in finance and quantitative skills but really good in character skills

    3. C.

      Character skills prepare you for an uncertain future.

    4. D.

      Entrepreneurs are already aware of their business and are only missing character skills.

    5. E.

      Character skills enable you to generate opportunities rather than capitalize on existing ones.

    Correct Answer:

    E

    Step-by-Step Solution

    Key idea: This is an inference question testing the ability to extract the specific comparative advantage of one concept over another as stated in the text.

    Step 1: Locate the comparison in the passage. The passage states: "Finance and marketing knowledge might have equipped founders to capitalize on opportunities, but studying proactivity and discipline enabled them to generate opportunities."

    Step 2: Analyze the distinction. Cognitive skills = capitalize on existing opportunities. Character skills = generate new opportunities.

    Step 3: Evaluate Option A. The passage does not discuss whether character skills are "industry agnostic."

    Step 4: Evaluate Option B. The passage does not suggest one can be "poor" in finance; it simply compares the impact of the two training types.

    Step 5: Evaluate Option C. While character skills help with resilience, the passage specifically highlights the "generate vs. capitalize" distinction as the core reason for the dramatic impact.

    Step 6: Evaluate Option D. The passage does not claim entrepreneurs are "only missing" character skills; it says the training had a dramatic impact, not that it was the sole missing piece.

    Step 7: Evaluate Option E. This is a direct paraphrase of the passage's explicit contrast: cognitive skills help "capitalize on opportunities," while character skills enable founders to "generate opportunities."

    Answer: Option E.

    Question 5 · Verbal Ability and Logical Reasoning (VALR) MCQ

    Common Description:

    Recently, a team of social scientists launched an experiment to test that hypothesis. They recruited 1,500 entrepreneurs in West Africa—a mix of women and men in their 30s, 40s, and 50s—who were running small startups in manufacturing, service, and commerce. They randomly assigned the founders to one of three groups. One was a control group: they went about their business as usual. The other two were training groups: they spent a week learning new concepts, analyzing them in case studies of other entrepreneurs, and applying them to their own startups through role-play and reflection exercises. What differed was whether the training focused on cognitive skills or character skills. In cognitive skills training, the founders took an accredited business course created by the International Finance Corporation. They studied finance, accounting, HR, marketing, and pricing, and practiced using what they learned to solve challenges and seize opportunities. In character skills training, the founders attended a class designed by psychologists to teach personal initiative.

    They studied proactivity, discipline, and determination, and practiced putting those qualities into action.

    Character skills training had a dramatic impact. After founders had spent merely five days working on these skills, their firms’ profits grew by an average of 30 percent over the next two years. That was nearly triple the benefit of training in cognitive skills. Finance and marketing knowledge might have equipped founders to capitalize on opportunities, but studying proactivity and discipline enabled them to generate opportunities. They learned to anticipate market changes rather than react to them. They developed more creative ideas and introduced more new products. When they encountered financial obstacles, instead of giving up, they were more resilient and resourceful in seeking loans. Along with demonstrating that character skills can propel us to achieve greater things, this evidence reveals that it’s never too late to build them... Character doesn’t set like plaster—it retains its plasticity. Character is often confused with personality, but they’re not the same.

    Personality is your predisposition—your basic instincts for how to think, feel, and act. Character is your capacity to prioritize your values over your instincts. Knowing your principles doesn’t necessarily mean you know how to practice them, particularly under stress or pressure. It’s easy to be proactive and determined when things are going well. The true test of character is whether you manage to stand by those values when the deck is stacked against you. If personality is how you respond on a typical day, character is how you show up on a hard day.

    Personality is not your destiny—it’s your tendency. Character skills enable you to transcend that tendency to be true to your principles. It’s not about the traits you have—it’s what you decide to do with them. Wherever you are today, there’s no reason why you can’t grow your character skills starting now.

    Which of the following can be BEST inferred from the passage?

    1. A.

      Cognitive skills unlike character skills are always reactive.

    2. B.

      Being aware of your character skills enable you to exercise them.

    3. C.

      Sustainable success in life requires strong character skills.

    4. D.

      Character skills can compensate for poor cognitive skills.

    5. E.

      Character skills can be built only if one believes in them.

    Correct Answer:

    C

    Step-by-Step Solution

    Key idea: This is an inference question testing the ability to draw a logical conclusion that is strongly supported by the passage without going beyond its scope.

    Step 1: Analyze the core argument. The passage contrasts cognitive skills (capitalizing on opportunities) with character skills (generating opportunities, anticipating changes, resilience).

    Step 2: Evaluate Option A. The passage says cognitive skills help capitalize on opportunities, but it does not state they are "always reactive." This is an extreme language trap.

    Step 3: Evaluate Option B. The passage explicitly states, "Knowing your principles doesn’t necessarily mean you know how to practice them." Thus, mere awareness does not enable exercise.

    Step 4: Evaluate Option C. The passage concludes that character skills propel us to achieve greater things, help us stand by values when the deck is stacked against us, and enable us to transcend tendencies. This strongly supports the inference that sustainable success requires strong character skills.

    Step 5: Evaluate Option D. The passage does not claim character skills "compensate" for poor cognitive skills; it says they have a different, often more dramatic, impact.

    Step 6: Evaluate Option E. The passage states character retains plasticity and can be built, but it does not make "belief" a strict prerequisite.

    Answer: Option C.

    More previous year questions (pyqs) in this unit

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    Business, Work & Professional Life Previous Year Questions (PYQs) for XAT: 8+ Solved Questions with Step-by-Step Solutions

    Solve 8+ Business, Work & Professional Life previous year questions for XAT with answers and detailed solutions. Free sample questions below.

    A question from this chapter

    Question 1

    Common Description:

    Read the passage carefully and answer the THREE questions that follow.

    Comprehension: What bullshit essentially misrepresents is neither the state of affairs to which it refers nor the beliefs of the speaker concerning that state of affairs. Those are what lies misrepresent, by virtue of being false. Since bullshit need not be false, it differs from lies in its misrepresentational intent. The bullshitter may not deceive us, or even intend to do so, either about the facts or about what he takes the facts to be. What he does necessarily attempt to deceive us about is his enterprise. His only indispensably distinctive characteristic is that in a certain way he misrepresents what he is up to. This is the crux of the distinction between him and the liar. Both he and the liar represent themselves falsely as endeavoring to communicate the truth. The success of each depends upon deceiving us about that. But the fact about himself that the liar hides is that he is attempting to lead us away from a correct apprehension of reality; we are not to know that he wants us to believe something he supposes to be false. The fact about himself that the bullshitter hides, on the other hand, is that the truth-values of his statements are of no central interest to him; what we are not to understand is that his intention is neither to report the truth nor to conceal it. This does not mean that his speech is anarchically impulsive, but that the motive guiding and controlling it is unconcerned with how the things about which he speaks truly are. It is impossible for someone to lie unless he thinks he knows the truth. Producing bullshit requires no such conviction. A person who lies is thereby responding to the truth, and he is to that extent respectful of it. When an honest man speaks, he says only what he believes to be true; and for the liar, it is correspondingly indispensable that he considers his statements to be false.

    Which of the following statements can be BEST inferred from the passage?

    Question 2

    Common Description:

    Recently, a team of social scientists launched an experiment to test that hypothesis. They recruited 1,500 entrepreneurs in West Africa—a mix of women and men in their 30s, 40s, and 50s—who were running small startups in manufacturing, service, and commerce. They randomly assigned the founders to one of three groups. One was a control group: they went about their business as usual. The other two were training groups: they spent a week learning new concepts, analyzing them in case studies of other entrepreneurs, and applying them to their own startups through role-play and reflection exercises. What differed was whether the training focused on cognitive skills or character skills. In cognitive skills training, the founders took an accredited business course created by the International Finance Corporation. They studied finance, accounting, HR, marketing, and pricing, and practiced using what they learned to solve challenges and seize opportunities. In character skills training, the founders attended a class designed by psychologists to teach personal initiative.

    They studied proactivity, discipline, and determination, and practiced putting those qualities into action.

    Character skills training had a dramatic impact. After founders had spent merely five days working on these skills, their firms’ profits grew by an average of 30 percent over the next two years. That was nearly triple the benefit of training in cognitive skills. Finance and marketing knowledge might have equipped founders to capitalize on opportunities, but studying proactivity and discipline enabled them to generate opportunities. They learned to anticipate market changes rather than react to them. They developed more creative ideas and introduced more new products. When they encountered financial obstacles, instead of giving up, they were more resilient and resourceful in seeking loans. Along with demonstrating that character skills can propel us to achieve greater things, this evidence reveals that it’s never too late to build them... Character doesn’t set like plaster—it retains its plasticity. Character is often confused with personality, but they’re not the same.

    Personality is your predisposition—your basic instincts for how to think, feel, and act. Character is your capacity to prioritize your values over your instincts. Knowing your principles doesn’t necessarily mean you know how to practice them, particularly under stress or pressure. It’s easy to be proactive and determined when things are going well. The true test of character is whether you manage to stand by those values when the deck is stacked against you. If personality is how you respond on a typical day, character is how you show up on a hard day.

    Personality is not your destiny—it’s your tendency. Character skills enable you to transcend that tendency to be true to your principles. It’s not about the traits you have—it’s what you decide to do with them. Wherever you are today, there’s no reason why you can’t grow your character skills starting now.

    Which of the following views would the author BEST agree with?

    Question 3

    Common Description:

    Read the passage carefully and answer the THREE questions that follow.

    Comprehension: Stupidity is a very speci c cognitive failing. Crudely put, it occurs when you don’t have the right conceptual tools for the job. The result is an inability to make sense of what is happening and a resulting tendency to force phenomena into crude, distorting pigeonholes.

    This is easiest to introduce with a tragic case. British high command during the First World War frequently understood trench warfare using concepts and strategies from the cavalry battles of their youth. As one of Field Marshal Douglas Haig’s subordinates later remarked, they thought of the trenches as ‘mobile operations at the halt’: i.e., as uid battle lines with the simple caveat that nothing in fact budged for years. Unsurprisingly, this did not serve them well in formulating a strategy: they were hampered, beyond the shortage of material resources, by a kind of ‘conceptual obsolescence’, a failure to update their cognitive tools to t the task in hand.

    In at least some cases, intelligence actively abets stupidity by allowing pernicious rationalisation.

    Stupidity will often arise in cases like this, when an outdated conceptual framework is forced into service, mangling the user’s grip on some new phenomenon. It is important to distinguish this from mere error. We make mistakes for all kinds of reasons. Stupidity is rather one speci c and stubborn cause of error. Historically, philosophers have worried a great deal about the irrationality of not taking the available means to achieve goals: Tom wants to get t, yet his running shoes are quietly gathering dust. The stock solution to Tom’s quandary is simple willpower. Stupidity is very different from this. It is rather a lack of the necessary means, a lack of the necessary intellectual equipment. Combatting it will typically require not brute willpower but the construction of a new way of seeing our self and our world. Such stupidity is perfectly compatible with intelligence: Haig was by any standard a smart man.

    Based on the passage, which of the following can BEST help a leader avoidstupidity?

    Question 4

    Common Description:

    Recently, a team of social scientists launched an experiment to test that hypothesis. They recruited 1,500 entrepreneurs in West Africa—a mix of women and men in their 30s, 40s, and 50s—who were running small startups in manufacturing, service, and commerce. They randomly assigned the founders to one of three groups. One was a control group: they went about their business as usual. The other two were training groups: they spent a week learning new concepts, analyzing them in case studies of other entrepreneurs, and applying them to their own startups through role-play and reflection exercises. What differed was whether the training focused on cognitive skills or character skills. In cognitive skills training, the founders took an accredited business course created by the International Finance Corporation. They studied finance, accounting, HR, marketing, and pricing, and practiced using what they learned to solve challenges and seize opportunities. In character skills training, the founders attended a class designed by psychologists to teach personal initiative.

    They studied proactivity, discipline, and determination, and practiced putting those qualities into action.

    Character skills training had a dramatic impact. After founders had spent merely five days working on these skills, their firms’ profits grew by an average of 30 percent over the next two years. That was nearly triple the benefit of training in cognitive skills. Finance and marketing knowledge might have equipped founders to capitalize on opportunities, but studying proactivity and discipline enabled them to generate opportunities. They learned to anticipate market changes rather than react to them. They developed more creative ideas and introduced more new products. When they encountered financial obstacles, instead of giving up, they were more resilient and resourceful in seeking loans. Along with demonstrating that character skills can propel us to achieve greater things, this evidence reveals that it’s never too late to build them... Character doesn’t set like plaster—it retains its plasticity. Character is often confused with personality, but they’re not the same.

    Personality is your predisposition—your basic instincts for how to think, feel, and act. Character is your capacity to prioritize your values over your instincts. Knowing your principles doesn’t necessarily mean you know how to practice them, particularly under stress or pressure. It’s easy to be proactive and determined when things are going well. The true test of character is whether you manage to stand by those values when the deck is stacked against you. If personality is how you respond on a typical day, character is how you show up on a hard day.

    Personality is not your destiny—it’s your tendency. Character skills enable you to transcend that tendency to be true to your principles. It’s not about the traits you have—it’s what you decide to do with them. Wherever you are today, there’s no reason why you can’t grow your character skills starting now.

    Based on the passage, why would character skills help entrepreneurs more than cognitive skills?

    Question 5

    Common Description:

    Recently, a team of social scientists launched an experiment to test that hypothesis. They recruited 1,500 entrepreneurs in West Africa—a mix of women and men in their 30s, 40s, and 50s—who were running small startups in manufacturing, service, and commerce. They randomly assigned the founders to one of three groups. One was a control group: they went about their business as usual. The other two were training groups: they spent a week learning new concepts, analyzing them in case studies of other entrepreneurs, and applying them to their own startups through role-play and reflection exercises. What differed was whether the training focused on cognitive skills or character skills. In cognitive skills training, the founders took an accredited business course created by the International Finance Corporation. They studied finance, accounting, HR, marketing, and pricing, and practiced using what they learned to solve challenges and seize opportunities. In character skills training, the founders attended a class designed by psychologists to teach personal initiative.

    They studied proactivity, discipline, and determination, and practiced putting those qualities into action.

    Character skills training had a dramatic impact. After founders had spent merely five days working on these skills, their firms’ profits grew by an average of 30 percent over the next two years. That was nearly triple the benefit of training in cognitive skills. Finance and marketing knowledge might have equipped founders to capitalize on opportunities, but studying proactivity and discipline enabled them to generate opportunities. They learned to anticipate market changes rather than react to them. They developed more creative ideas and introduced more new products. When they encountered financial obstacles, instead of giving up, they were more resilient and resourceful in seeking loans. Along with demonstrating that character skills can propel us to achieve greater things, this evidence reveals that it’s never too late to build them... Character doesn’t set like plaster—it retains its plasticity. Character is often confused with personality, but they’re not the same.

    Personality is your predisposition—your basic instincts for how to think, feel, and act. Character is your capacity to prioritize your values over your instincts. Knowing your principles doesn’t necessarily mean you know how to practice them, particularly under stress or pressure. It’s easy to be proactive and determined when things are going well. The true test of character is whether you manage to stand by those values when the deck is stacked against you. If personality is how you respond on a typical day, character is how you show up on a hard day.

    Personality is not your destiny—it’s your tendency. Character skills enable you to transcend that tendency to be true to your principles. It’s not about the traits you have—it’s what you decide to do with them. Wherever you are today, there’s no reason why you can’t grow your character skills starting now.

    Which of the following can be BEST inferred from the passage?

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