Directions (1-5): Read the following passage carefully and answer the questions given below it.
The Prime Minister’s recent trip to Nigeria, the first bilateral prime ministerial visit to Africa since Jawaharlal Nehru’s 45 years ago, recalls a long neglected Indian obligation. “It is up to Asia to help Africa to the best of her ability,” Nehru told the Bandung Conference in 155, “because we are sister continents. “The Prime Minister’s proposed strategic partnership with African nations might at last make good that 52-year old promise and also, perhaps, challenge China’s expedient diplomacy. In the intervening years, the West’s sanctimonious boycott of many African regimes – after nearly a century of extreme colonial exploitation – left the continent in the grip of oppressive rulers looking for new political sponsors, arms-sellers and trading partners. Not only was it an abdication of the developed world’s responsibility to the world’s least developed region, sanctions actually compounded the sufferings of poorer Africans. The Darfur killings continue and there is no mellowing of Robert Mugabe’s repression in Zimbabwe.
Abandoned by the West Africa looked elsewhere. Beijing filled the vacuum by eagerly embracing dangerous and unsavory regimes in its search for oil and other minerals. China demonstrated its influence by playing host to 48 out of 53 African leaders a year ago in a jamboree that was historic as well as historical. Historic because China has succeeded in becoming the pre-eminent outside power in Africa and its second biggest trading partner. Historical because modern Chinese diplomacy draws on the Middle kingdom’s ancient formula; the tribute system. It was how the son of Heaven brought those nations whom the Celestial Empire called “barbarians’ into his imperial trading and , through it, cultural and political system.
Contemporary China’s economic penetration of Africa also heralds a new era of cultural and political ties though the Chinese foreign ministry repeatedly assure the world that “our cooperation is not designed to be against or preclude any third party.” This is untrue in a world of finite resources. Once the Chinese are established in a country, no one else gets a foothold. Myanmar, where India failed to obtain the desired gas concessions, is a prime example. Aware that the hunt for energy is a zero-sum game, China’s leadership courts African leaders with regular visits and substantial grants. After decades of neglect – Vajpayee’s Africa visit over a decade ago was to attend a Commonwealth Summit– India will have to move cautiously but quickly if it is to break China’s monopoly. Along with investing in Africa’s human capital, China has outlined a strategic investment plan to build three to five trade economic cooperation zones in Africa by 2009 to boost trade, which is expected to tap $40 billion this year. That could double to $30 billion by 2010 on the back of an insatiable demand for natural resources to feed China’s booming economy.
Q1. What was Jawaharlal Nehru’s consideration for helping African nations?
(a) The people in the continent were extremely backward
(b) The Bandung Conference was held in African Continent
(c) African Continent is emotionally related to Asian Continent
(d) Nehru had promised the British rulers to help Africa after independence
(e) The West had exploited African people
Q2. The example of Myanmar given by the author proves
(a) that when China patronizes a country it does not allow other nations to enter
(b) India’s foresight to feed its growing hunger for energy
(c) Myanmar’s political acumen to have symbiosis with China
(d) that a country’s political wisdom does not necessarily establish economic stability
(e) None of these
Q3. Which of the following is the author’s suggestion to India to break the Chinese monopoly?
(a) Move away cautiously but quickly from the African nations
(b) Arrange P. M.’s regular visits to African countries
(c) Outline a strategic plan of investment in the African countries
(d) Plan for an increased economic help to African countries
(e) None of these
Q4. From the contents of the passage, it can be inferred that the author’s views are
(a) in favour of India gaining an edge over China
(b) against India’s entering into a competition with China
(c) in favour of not making any investment in African countries
(d) appreciate of oppressive and barbaric African rulers
(e) None of these
Q5. The author considers the claims of the Chinese Foreign Ministry regarding third party as
(a) just and worthy of trust
(b) true but slightly exaggerated
(c) too exorbitant to be true
(d) an underestimate of the quality and quantity of their help
(e) None of these
Directions (6-10): In each of the following questions a short passage is given with one of the lines in the passage missing and represented by a blank. Select the best out of the five answer choices given, to make the passage complete and coherent.
Q6. The art of medicine is the art of healing, not just treating, and not even just curing. Yet it is only when the art and science join hands that healing is best accomplished. The author then adds ……………., remember that the practice of medicine is an art, not a trade, a calling, not a business, a calling in which your heart will be exercised equally with your head. This book is rare work of the art of medicine,from a very rare practitioner of the science of medicine.
(a) “mankind depends on science as equally on the art”
(b) “for the mercy’s sake let us have little less science and a little more art”
(c) “let us consider science at par with art”
(d) “let us forget what is art and what is science”
(e) “do not blame medicine for it”
Q7. The Finance Commission is entrusted with periodic review and resolution of Central- State fiscal problems. It was the clear intention of the father of the India Constitution that all matters pertaining to normal Central-State financial adjustment should be scrutinized by the Finance commission………………. An incidental and by no means insignificant advantage of the appointment of a Finance Commission has generally been to rekindle interest in issues pertaining to financial relations between the Centre and the States and to promote an enlightened national debate on the several facets of India’s federal fiscal set-up. The role of the Indian Finance Commission is unique in many ways. It is one of few commission provided in the constitution.
(a) which was given a pre-eminent role in the resolution of problems in fiscal federalism
(b) Which was constituted with the vision of a modern India with modern facilities
(c) Which was a dream of Father of Nation also
(d) Which was to be unique in its ways and a constitutional body
(e) Which was introduced as a backbone for Indian Economy
Q8. However, it is possible that the non -resident entity may have a business connection with the resident Indian entity. In such a case, the resident Indian entity could be treated as Permanent Establishment of the nonresident entity.…………… During the last decade or so, India has seen a steady growth of out sourcing of business processes by non residents or foreign companies to IT – enabled entities in India. Such entities are either branches or associated enterprises of the foreign enterprise or an independent India enterprise. The nonresident entity or foreign company will be liable to tax in India only if the IT -enabled BPO unit in India constitutes its Permanent Establishment.
(a) The tax treatment of the Permanent Establishment in such a case is under consideration
(b) How would the profit would be shared is not decided yet?
(c) A lengthy and cumber some process requiring a lot of application of mind and revenue principles is ahead for the tax department of India
(d) A new trend is seen in last decade.
(e) Indian companies have a lot on stake as competition increases.
Q9. The financial year 2007-08 witnessed a slew of acquisitions across diverse sectors of the economy in India……………Of all sectors, steel was the most dominant in terms of stake sales as deals valuing $ 3.862 billion took place in Q1 of 2007-08 by the Indian companies in the global arena. Energy ranked second, with automotive and auto components close on its heels. In the domestic segment, iron ore, aviation and steel were the most prolific in terms of mergers and acquisitions. With Indian corporate houses showing sustained growth over the last decade, many have shown an interest in growing globally by choosing to acquire or merge with other companies outside India. One such example would be the acquisition of Britain’s Corus by Tata an Indian conglomerate by way of a leveraged buy-out. The Tata’s also acquired Jaguar and Land Rover in a significant cross border transaction. Whereas both transactions involved the acquisition of assets in a foreign jurisdiction, both transactions were also governed by Indian domestic law.
(a) These acquisitions are purely Indian but covering diverse sectors ranging from automobiles to Steel
(b) Acquisitions are like a big shark swelling a small fish without noticeable fight put up by the latter
(c) Unlike in the past, such activity was not limited to acquisitions within India or of Indian companies
(d) Globalization has brought this trend to India and Indian companies are no longer isolated from its effects
(e) International law of acquisitions hold true for all the countries and binding on each member
Q10. ……………….. But there is, in fact, a vast difference. Merger generally refers to a circumstance in which the assets and liabilities of a company (merging company) are vested in another company (the merged company). The merging entity loses its identity and its shareholders become shareholders of the merged company. On the other hand, an amalgamation is an arrangement, where by the assets and liabilities of two or more companies (amalgamating companies) become vested in another company (the amalgamated company).The amalgamating companies all lose their identity and emerge as the amalgamated company; though incertain transaction structures the amalgamated company may or may not be one of the original companies.
(a) Very often, the two expressions “merger” and “amalgamation” are used synonymously
(b) ‘Merger’and ‘amalgamation’ are terms that can be used interchangeably but up to a limit
(c) ‘Merger’ and ‘amalgamation’ are synonymous to each other
(d) ‘Merger’ and ‘amalgamation’ are not synonymous to each other
(e) Words ‘merger’ and ‘amalgamation’ should be used cautiously
“It is up to Asia to help Africa to the best of her ability “Nehru told the Bandung conference in 155, “ because we are sister continents.” These statements explain that African continent is emotionally related to Asian continent.
Once the Chinese are established in a country, no one else gets a foothold. Mayanmar, where India failed to obtain the desired gas concessions, is a prime example. These lines explain China’s monopoly.
None of the answer choices are author’s suggestion to India to break the Chinese monopoly. In the passage the author only says that India will have to move cautiously but quickly if it is to break Chinese monopoly.
Every where in the passage we find author favours India gaining an edge over China. Author throughout the passage is highlighting China’s own perspective while they are helping the African’s.
According to the passage the Chinese foreign ministry repeatedly assure the world that “our co-operation is not designed to be against or preclude any third party”. None of the answer choices matches author’s consideration because the claims of China’s foreign ministry are totally untrue.
Option (b) is right as it has connection with what is said in the passage after the blank space. Mercy in this option connects well with not a trade, not a business etc.
Before the blank space, centre -state problems are discussed and after the blank advantage of finance commission is given in this regard. So option (a) in right approach has shown finance commission in connection with both the problems and it’s own advantage. Option (c) is out of context. Option (d) is also mentioned in passage in later parts. Option (e) can be true but not the best answer.
Passage is about nonresident Indian entity and its tax deduction. Other options are not in the context of passage as they talk about the things which are not given or can be inferred from the passage.
Option (c) is the correct choice.
In option (b) ‘limit’ is doubtful.
Option (c) and Option (d) are incorrect and cannot be defined from the passage.
Option (e) applies too much caution which is not intended here.
Option (a) is only option which in combination with next statement is sensible.
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