CAT Parajumble Practice Question 27

Question 27:

The four sentences (labelled 1, 2, 3, and 4) given in this question, when properly sequenced, form a coherent paragraph. Decide on the proper order for the sentences and key in this sequence of four numbers as your answer.

  1. It was his taxpayers who had to shell out as much as $1.6bn over 10 years to employees of failed companies.
  2. Companies in many countries routinely engage in such activities which means that the employees are left with unpaid entitlements
  3. Deliberate and systematic liquidation of a company to avoid liabilities and then restarting the business is called phoenixing.
  4. The Australian Minister for Revenue and Services discovered in an audit that phoenixing had cost the Australian economy between 2.9bnand2.9bnand5.1bn last year.
Option: 3241

This is a relatively easy question. There are a few clues that we must notice in order to get the sequence correct in shorter time.

The pronoun ‘such activities’ in statement 2 must refer to some activities. The only noun it could refer to is phoenixing, which has been introduced in sentence 3. Since statement 3 opens the idea of phoenixing, it should start the paragraph. After statement 3 we can have either 4 or 2. 2 makes more sense because it further adds more information about the idea of phoenixing. Thus 3 and 2 form a pair, and 4 and 1 form another pair because ‘his taxpayers’ in statement 1 should refer to a noun, which can be found in statement 4 in the Australian minister for Revenue and Services.

Thus 3241 form a logical sequence.

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