XAT 2025 Decision-Making Sample Questions: Sharpen Your Problem-Solving Skills

XAT 2025 Decision-Making Sample Questions: Xavier Aptitude Test (XAT) is a national-level MBA entrance exam that has three main sections: Logical Reasoning & Verbal Ability, Quantitative Aptitude & Data Interpretation, and Decision Making. General knowledge is also included in this exam. In this article, we will talk about the XAT Decision-Making Exam Preparation and show some sample questions to students for a better understanding of this topic as there are very few study materials in the market.

Latest: XAT Sectionwise Preparation Tips

Suggested: XAT Sample Paper, Topic wise Questions with Solution

This Story also Contains

1. Understanding the XAT Exam Decision-Making Section
2. Key Concepts in XAT Decision-Making
3. XAT 2025 Decision-Making Sample Questions
4. XAT Decision-Making Practice: Best Resources
5. Strategies for Success in XAT Decision-Making
6. Analyzing Previous Year’s XAT DM Questions
7. XAT Decision-Making Section Tips
8. XAT Decision-Making Exam Preparation Timeline
9. Frequently Asked Questions about XAT Decision-Making
10. Success Stories: How to Ace the XAT Decision-Making Section
11. Final Thoughts on XAT Decision-Making

Understanding the XAT Exam Decision-Making Section

Decision Making is a unique section that is only designed for the XAT exam. This section tests some of the important skills required for managerial and leadership positions like real-world problem-solving skills, ethical & Analytical judgment, etc. In this article, we will discuss some XAT Decision-Making Section Tips and answer some of the common questions asked by students like:

• Which are the best XAT Decision-Making Test Strategies?

• What does a proper Decision-Making Section XAT Exam Guide look like?

• Give us examples of XAT 2025 Decision-Making Sample Questions.

Importance of Decision-Making in XAT 2025

The XAT Exam Decision-Making section is a very complicated but high-scoring section if students approach it strategically. This section tests students' practical and ethical decision-making abilities in real-world scenarios. 25-30% of the overall weightage depends on this section. Many students find this section ambiguous and complex, making it a very important section to boost overall performance and make candidates stand out.

Structure of the Decision-Making Section

This section will have 21-22 questions. All the questions will be MCQ types, and no calculations will be needed. Each question will have 5 options, and candidates need to select the most appropriate option.

The common types of questions will be:

• Ethical Dilemmas

• Business decisions

• Human resource and interpersonal scenarios

• Stakeholder management

Negative marking applies to this section.

Key Concepts in XAT Decision-Making

Understanding the key concepts of this section is very important for XAT Decision-Making Practice.

What is Decision-Making in XAT?

Decision-Making in the XAT exam is a unique section and tests the decision-making skills of the students. Candidates have to make XAT Decision Making strategies to Improve XAT scores in this section. This section is not about your maths skills or verbal skills but it is about your ethical or moral stances. This section is not calculation-based. This section generally comprises 21-22 questions based on business scenarios, daily routines, or problem-solving situations.

These are the various types of scenarios in XAT Decision-Making Practice Questions.

Common Themes in Decision-Making Questions

These are common themes and their solution approaches in Decision Making Questions.

XAT 2025 Decision-Making Sample Questions

These are some of the XAT 2025 DM Practice Questions that will help students understand the question types.

Types of Sample Questions You Might Encounter

Q1. Directions: Study the following information carefully and answer the related question.

The Indian government may hold top executives responsible if state-run power companies fail to meet performance targets and punish them with fines and transfers. The strict performance parameters are aimed at ensuring that at least the reduced target for 62,000 MW of generation capacity addition is achieved before the end of the 11th Plan, said a power ministry official. Performance of the chairman and managing directors of the power Public Sector Units (PSUs) in project implementation will be assessed as per the terms and conditions stipulated in the company’s memorandum of understanding (MoU) with the power ministry, he said, requesting anonymity. Performance parameters of executives had come under strict scrutiny due to a lack of progress in the capacity addition program. While the target for the 11th five-year plan has already been scaled down by the government from 78,500 MW, the first three years of the plan yielded only 22,302 MW of fresh capacity.

Question: If you were the chairman of one of these power PSUs, which of the following statements (all of which are assumed to be true) could best be used to strengthen your case against the government holding top executives responsible?

i. The labor unions, owing allegiance to the ruling party at the Centre, are not allowing work to progress with their demands for wage hikes that are untenable.

ii. The actions of the mid-level management are not in line with the objectives laid down by the top management.

iii. The delays have been due to difficulties in obtaining funds at reasonable interest rates on account of the recessionary conditions.

iv. We are not to blame. The government is not doing enough to ensure the availability of sufficient fuel to power the existing plants, let alone the new plants.

v. The government had ignored the infrastructure availability like roads etc., and environmental clearances required for such projects and therefore set an unrealistic target to begin with, and the revised target is also unrealistic as well and the revised target is also unrealistic as well.

1. i and ii

2. i and iii

3. i, iii, and iv

4. ii, iv, and v

5. i, ii, iii, iv and v

Solution:
The statements in option C collectively make a case that the delays and challenges in achieving the power generation targets are influenced by external factors and government actions, and thus, top executives should not be held solely responsible. Here's an explanation for each of the selected statements:
i. The mention of labor unions allied with the ruling party obstructing progress due to unrealistic wage hike demands indicates that external political factors are affecting the execution of projects. This highlights that the top executives are facing hurdles beyond their control.
iii. The statement about difficulties in obtaining funds at reasonable interest rates due to recessionary conditions emphasizes that economic circumstances play a significant role in project delays. This suggests that external economic factors have an impact.
iv. Pointing out that the government is not ensuring the availability of sufficient fuel for existing and new plants highlights that government policies and actions are contributing to the challenges. This statement indicates that top executives can't be held solely responsible for issues beyond their control.
Collectively, these statements make a compelling case that external factors, including political, economic, and government-related issues, have played a significant role in the delays and challenges in meeting power generation targets. This argument supports the idea that top executives should not be held solely responsible for these issues.

Hence, the third option is correct.

Q2. Directions: Read the following information and choose the best alternative:

The one industry that has seen the worst possible impact of rising oil costs is the airline industry. In the last given years, the cost of aviation fuel has gone by more than 40%, and considering that aviation fuel makes up for 40% of the total operating costs of an airline, the impact of this increase has been immense. During the same period, the airline companies have increased ticket prices by 10% but this has met with a bad response from flyers. The occupancy drop for airlines has been around 15% and those using airlines previously prefer to use other cheaper modes of transportation.

Wet Airways is one company stuck in the middle of this issue. Wet Airways has always provided exceptional service to its clients. In terms of comforts, anyone who has flown with Wet can vouch for the fact that their cabin crew is the best, and the bouquet of services they provide is immense. In the general market scenario, whereas general carriers have an occupancy rate of about 70%, Wet always had its flights fully occupied. But such service comes at some costs. Wet Airways, with its extremely customer-friendly model, has constantly bled money and can no longer sustain the same levels of service, keeping in mind the enhanced cost of aviation fuel. Keeping the current market scenario in mind, Wet has decided to slowly and steadily reduce the number of services it offers to its passengers, and thereby reduce its operational costs. By using these measures, Wet plans to reduce its costs by 20%.

Question: Which, out of the following measures, can be used by Wet Airways in the current market scenario to make sure that it retains its flyers when it changes the services it offers?

1. Giving the return ticket from a destination is free.

2. Better facilities in airport lounges.

3. Hire models and pretty faces to attract more men.

4. An enhanced frequent flyer program rewarding its regular customers.

5. Personal greeting cards asking its clients to continue to use its services.

Solution:

Correct Answer:- D

Explanation:- You need to pick a choice that helps the company generate greater air traffic yet is not a burden on the company, as the existing scenario is pretty bleak. In such a case, the best approach is illustrated by option D, as it offers rewards to those who use the service frequently (thereby rewarding loyalty), and yet does not place substantial costs on the company. Also, in case the flyer frequently uses the service, then only he becomes eligible for these benefits, thus implying a sure-shot increase in revenue for the company.

Q3. Directions: Read the following information and choose the best alternative:

In the last five years, the face of the mobile phone industry has transformed. From an industry that was finding its feet in the global set-up, it has gone on to grow into a mainstay of the global financial world. In the world of mobile phones, Bokia was the leading phone manufacturer generating the highest revenues for more than a decade, and in the last two years, it has lost that position to Bamsung. Bokia, which entered the field of mobile phones in 2002, grew handsomely during a decade in which its sales touched figures of 10 million handsets annually in the year 2010. To go with these sales, it had an operating margin of 20% and generated revenue of 4.1 billion dollars. A lot of people, including major financial institutions, saw Bokia as an amazing investment opportunity and decided to invest in the company. The shares of Bokia soared in all these years and the company generated a lot of positive attention.

But somewhere along the line, this fairy tale has not quite gone down the expected road. Though Bokia has managed to increase its sales to 13 million handsets in the last two years, and its revenues have gone up to 4.6 billion dollars, its operating margins have reduced to 4%, and in terms of profitability, it has been beaten hands-down by Bamsung. To add to that, Bamsung seems to be dominating the high-profit market of touch phones, and Bokia still seems to selling mobile phones of the previous generation. The stock markets have not taken kindly to these events, and the Bokia stock price has tumbled by more than 20% in the last two years, and the shareholders are not happy with the current scenario.

You represent Holdman Machs, the main investor for Bokia, and hold a 16% stake in the company. You have called a shareholder meeting where you have asked the current CEO to explain his position.

The following is a list of measures that the CEO has proposed at the shareholder meeting.

I. Introduce a new touch screen mobile phone range much better than the ones being sold by Bamsung.
II. Reducing the prices of our mobiles further to increase sales.
III. Increasing the prices of our existing mobile to increase profits.
IV. Reducing employee salaries to improve operating margin.
V. Identifying a strategic investor to help us create new products and fund the battle with Bamsung.

Which, out of the above measures, would reap benefits at the earliest?

1. I and IV

2. II and IV

3. III and IV

4. II and V

5. I and V

Solution:
Correct Answer:- E
Explanation:- In the given question, we need to pick two measures that would reap benefits for Bokia. Well, the two measures should be the ones that have the potential to have an impact on the market and create a positive sentiment about the Bokia product. The only two options that talk about introducing a better product are highlighted by I and V.

Real-Life Scenarios in XAT DM Questions

Some of the examples of real-life scenarios in XAT DM Sample Questions are:

• A senior manager discovers that an employee in a critical role has been fudging performance reports to meet quarterly targets. While the employee’s work is otherwise exceptional, this action has implications for team morale and company ethics.

• A company has to decide between launching two products. Product A has high-profit potential but a narrower target market, while Product B has lower profit margins but broad appeal. Resources allow only one product to be launched within the fiscal year.

• Two high-performing team members have a disagreement over their approach to a project, which is affecting team productivity. Both employees are crucial to the project’s success, and each has legitimate concerns.

• A manufacturing company faces a choice between using high-quality raw materials, which will increase product costs or a more affordable option that compromises slightly on quality. Customer loyalty is important, but profit margins are tight.

• A consumer product has been found to have minor defects after it’s already hit the market. While the defect is not safety-related, the company faces negative press and customer complaints.

• An NGO has limited funds to allocate between two projects: one provides clean drinking water to remote villages, and the other offers scholarships for underprivileged students. Both projects have strong social benefits but limited resources force a choice.

• A retail company is considering expanding into a new region where it has little market presence. Initial research shows potential but with considerable risk due to a lack of brand recognition and high initial costs.

XAT Decision-Making Practice: Best Resources

There are very less study materials available for the XAT decision-making section. These are some of the best resources for the decision-making section.

Recommended Books for XAT DM Preparation

These are the top books for XAT DM preparation.

1. "Jabbing The XAT (with solved papers)" by R.K. Jha

2. "XAT Decision Making & Analytical Reasoning" by Anil S. Kumar

3. "Target XAT" by Disha Experts

4. "Arun Sharma's Logical Reasoning and Data Interpretation"

Online Platforms for XAT Decision-Making Practice

These are the links to some of the best online platforms for XAT Decision-Making Practice.

XAT Mock test

XAT Question Paper

Strategies for Success in XAT Decision-Making

To succeed in the XAT decision-making section, students need to focus on two main things.

• Time management skills

• Analytical skills

Time Management Tips During the Exam

Here are some tips to manage time for the decision-making section.

Allocate time: Allot 1.5-2 minutes per question and 8-10 minutes per caselet in the exam.

Give priority to easy questions: Attempt the relatively easier questions first. This will boost your confidence and you will have extra time for complex questions.

Avoid over-complication: Understand the question carefully and think only based on the given information. Do not overcomplicate every question with data from your head. Trust your instincts and analyze options carefully.

Ignore extreme options: Extreme options are often the wrong answers in this section. So after eliminating them, consider other options.

Skip complex questions: Do not hesitate to skip a difficult question that is taking too much time.

Analytical Skills to Enhance Your Decision-Making

Deep analytical skills are required to solve these questions. Using analytical skills, students can deduce the pros and cons of every decision and its long-term effects on groups or society. Correct answers are often decisions that are sustainable and beneficial in the long run and ethically sound.

Analytical skills can enhance your decision-making in many ways.

• Students can analyze the options and eliminate the options that are not aligned with the core values of fairness and integrity.

• Students can review the short and long-term benefits of every decision.

• An ideal decision will have an equal impact on every group rather than benefiting one group. Analytical skills can impact these assessment skills.

Analyzing Previous Year’s XAT DM Questions

During the preparation for the XAT decision-making section, the first step always should be reviewing the previous year's papers thoroughly.

Insights from Past Decision-Making Questions

Previous year papers give you many insights into past decision-making questions like:

Common themes and scenarios:

The common types of questions in this section are:

• Ethical dilemmas

• Business and operational decisions

• Conflict resolutions

Question structures: All the questions will be MCQ types with 5 options and all the options will look more or less the same.

Difficulty level of questions: The difficulty level of the questions is moderate to hard. Questions can be a bit lengthy. So develop quick reading strategies beforehand.

Decision-Making Skills in Context: The candidate's ability to make balanced decisions considering the impact on all the stakeholders is checked. Correct answers are often not for immediate gains but rather for long-term solutions.

Common Mistakes to Avoid in DM Section

Some of the common mistakes students make in the XAT DM section are:

Misinterpretation: Students often do not read the statements carefully and misinterpret the whole situation. Time management is key in this section but take your time with the questions.

Choosing extreme solutions: Sometimes students pick the extreme solution as the right answer. But they are the wrong choices.

Not checking all the options: Students often do not check the other options if they find one option relatively better. But in these types of exams, most of the options are almost the same and tricky. Read all the options first before choosing the answer.

Emotional or biased: In ethical dilemmas, often students pick a solution that is driven by emotion or sympathy. Stay objective and pick a solution that is logically backed by the facts.

Selecting impractical solutions: Students often select a solution that is impractical to be implemented. Select a solution that can be applied in real life.

Relying on own facts: Students often speculate on other facts that could happen beyond the situation. Pick a solution based on the given facts.

XAT Decision-Making Section Tips

These are some of the tips that will be useful for the XAT decision-making section.

Effective Study Techniques for XAT DM

The decision-making section will test both your logical and ethical decision-making under real-life scenarios. These study techniques will help you in this process.

Understand the common topics: Analyze the previous year's papers and identify the common DM themes like ethical dilemmas, business decisions, crisis management, and interpersonal conflicts.

Develop a framework: Analyze each question using a consistent framework, such as S-E-C (Stakeholders, Ethics, Consequences), which helps you stay organized and avoid impulsive choices.

Real-life case studies: Make a habit of reading business case studies from journals, newspapers, publications, and websites. Understand the context for decision-making scenarios and improve your decision-making skills.

Accuracy over Quantity: Practice solving decision-making questions more accurately rather than attempting a lot of them.

Mock tests: Take topic-wise and full-length mock tests to test your learnings. Consistent performance on mock tests will also boost your confidence.

Improving your weaker areas: Review mock test results, and identify the weaker areas in which you need to pay more attention. Strengthen those areas before attempting another mock test.

Group studies: Join online communities or forums to discuss these sections with fellow peers. New perspectives will surface and you will learn alternative approaches.

Mock Tests: How to Utilize Them for Preparation

XAT mock tests are prepared following the latest pattern and syllabus. These mock tests can help students in many ways:

Judgment improvement: Students can practice various kinds of business scenarios or ethical dilemmas to improve their judgment and adapt themselves better to these types of questions.

Problem-solving skills: The more you practice these types of questions, the better your problem-solving skills get.

Identifying weaker sections: Review the mock test results and note down the key issues in which you are struggling. Work on those problems to not repeat them in the next tests.

Time management skills: After taking 2-3 mock tests, develop a proper strategy to approach different kinds of questions. Either you want to read the options first or weigh up the pros and cons.

Handling complex problems: Deep analytical skills are required to solve these questions. Consistent practice will help you break complex problems into manageable parts so that you can analyze all the parts and arrive at a logical conclusion in a structured manner.

XAT Decision-Making Exam Preparation Timeline

A proper strategic approach towards the decision-making section in XAT is very important. Creating a proper study schedule is the first step in that direction.

Creating a Study Schedule for XAT DM

This is a demonstration of how students handle this section during their preparation period.

Milestones to Track Your Progress

These are the milestones students should focus on and try to complete during the preparation phase.

Milestones after week 2: You should be familiar with the question types, common question types, and basic problem-solving techniques.

Milestones after week 4: You should develop the ability to analyze complex scenarios and make structured decisions.

Milestones after week 6: You should be able to identify your weaker areas and work on them. You should also improve accuracy and have distinct strategies for each type of problem to save time.

Milestones after week 8: By this time, you should be able to solve every type of Decision-making problem. Test this in full-length mock tests. Consistent performance in mock tests will boost your confidence. Refine your strategies after each mock test.

Frequently Asked Questions about XAT Decision-Making

How is the DM Section Scored?

For each correct answer, you will receive +1 marks and a deduction of -0.25 marks for each wrong answer in this section. After 8 consecutive unanswered questions, -0.10 marks per question will be deducted for each unattempted question.

In this section, focus more on accuracy rather than quantity. Lots of students struggle in this section. If you think strategically, you can score higher marks in this section.

What to Do if You Get Stuck on a Question?

If you get stuck in a question, these are the steps you should take.

• Break the problem down into manageable parts and analyze them efficiently.

• Eliminate extreme options and review the remaining options.

• If it takes too much time then skip it for the time being and return to it at the later part of the exam.

• After finishing other questions, return to that question with a fresh mindset.

• Try to understand who are the key stakeholders and what is their primary goal.

• If you still can't solve the problem, leave it and revise other questions.

What If the Question Has Multiple “Correct” Options?

In these types of exams, multiple may seem correct and they are given like that to confuse students. But choose the option that satisfies these conditions.

• Maintains a balance between ethics and practicality

• Provide positive outcomes for all the stakeholders.

• Avoid unnecessary risk or conflict.

• Focuses on long-term success rather than short-term gains.

Can Past Work Experience Help in Solving DM Questions?

Yes. Past work experience will help in solving XAT DM questions as most of the questions mimic real-world scenarios. Candidates who have experience in team dynamics, ethical decision-making, or conflict resolution can be a step ahead of others in these questions.

Students who have experience in group projects, internships, or volunteer work can also approach these types of questions with a realistic perspective.

Should I Attempt Every Question in the DM Section?

As there is a negative marking for every wrong answer, it is advisable to not attempt a question without being sure. Focus more on accuracy rather than quantity in this section. That being said, do not leave too many unanswered questions. Eliminate extreme options and take an educated guess among the remaining.

Success Stories: How to Ace the XAT Decision-Making Section

Students often ask themselves how the toppers prepared for this section. In this section, we will discuss the toppers' XAT DM strategies.

Interviews with XAT Toppers on DM Strategies

These are some links to the topper's suggestions.

XAT Toppers, Success, Strategies

XAT Preparation Tips

Several toppers toppers often suggest that though it is a complex section, that makes it the most important section of XAT to score high. This section also doesn't involve calculations, which saves time for other sections.

These are some strategies used by toppers.

Understanding the format: Toppers often stressed the fact that reviewing the previous year's papers and understanding how many types of questions come from this section is very important.

Consistent Practice: Toppers always remind the fact that this section is not about traditional knowledge but about your logical thinking considering all circumstances. These questions revolve around real-world situations and getting accustomed to these types of decisions from newspapers and journals will eventually help students during the XAT exam.

Develop structured thinking: Toppers always suggest understanding what is at stake after reading the questions and reviewing all the options as per feasibility, impact on others, and ethical considerations. Then selecting the most balanced solutions is the best approach.

Case Studies of Effective Decision-Making

These are some of the common case studies in the XAT DM section and the approaches the toppers would have taken.

Case 1: Ethical Dilemma in Resource Allocation

A company with a limited budget must choose between investing in quality control improvements or launching a new marketing campaign.

Toppers always suggest that the main focus should be on maintaining product quality as it aligns with long-term customer trust and brand reliability.

Case 2: Crisis Management and Brand Image

A company’s product recall is going viral on social media, damaging its reputation. The question involves deciding how to handle the crisis while balancing transparency with damage control.

In this situation, toppers always advise not to provide any immediate fix but rather provide a structured response like first issuing a public apology, followed by clear information on corrective measures and committing to quality improvements.

Case 3: Conflict Resolution Between Employees

Two team members disagree on project direction, each advocating different approaches. Both approaches have potential benefits, but the dispute is affecting team morale.

Toppers always suggest that rather than choosing one’s approach outright, a discussion on both perspectives is always essential. After that choose a hybrid solution that will foster collaboration and mutual respect as well as maintain team harmony.

Case 4: Balancing Profit with Social Responsibility

A company can choose between a profitable partnership with a high-pollution factory or seeking an environmentally responsible, albeit less profitable, partner.

In this situation, toppers always welcome the environmentally responsible partner recognizing the importance of sustainability. They highlighted the fact that in today's market, long-term social responsibilities are very important to win customer’s loyalty and also for long-term profits.

Final Thoughts on XAT Decision-Making

These are some final thoughts on the XAT Exam Decision-making section that can be used for revision or last-minute practice.

Recap of Key Takeaways

These are the key takeaways from the XAT Preparation period which can be used in the last month of the preparation and on exam day.

• Familiarize yourself with key frameworks like cost-benefit analysis, SWOT analysis, and ethical decision-making principles.

• Go through the previous year's solved papers to understand the thinking behind the answers.

• Focus more on ethical Dilemmas as most of the questions from this section are from this topic.

• Allocate time wisely by practicing caselet timing during mock tests.

• Refresh eliminating incorrect options techniques to use efficiently in the exam.

• Engage in puzzles, case studies, and debates to refine your logical thinking skills.

• Join online communities and discuss with other peers about techniques they are using for this section.

• Review the tips and ideas from XAT toppers and reinforce your strategies for complex questions.

Encouragement for Aspirants: Stay Confident!

From the outside, this section may seem a bit difficult also from the question's size, but if you trust your ability to think critically and fairly, then this section is a high-scoring section for you. Most of the students struggle with this section because they do not approach this section strategically. You do not repeat that same mistake and improvise proper plans for this section.

Stay positive and you will achieve good marks in this section.

Good luck - You have got this.