A lending Indian industrial in a recent article on ways to strengthen India's economy has drawn attention to the problems of inflation and industrial sickness among other things. One of the main
reasons for industrial sickness in our country has been the fact that business and industrial managers, have been the fact that business and industrial managers, have not been able to look beyond the immediate future. They have been too preoccupied with their attempts to report favourable results for the current year - higher profits and larger dividends to the share holders. The planning horizon has hardly ever exceeded five years. Investments have been inadequate for new plants and towards diversification and expansions. Modernisation and asset creation has seriously lagged behind. In business, growth is needed for survival; one has to grow if one does not want to be wiped out. This is particularly true today with liberalisation of imports and increasing competition. More over, growth and higher productivity create larger markets both for industrial and consumer products. It was Henry Ford who brought home the need for the creation of a larger and a more stable middle class, that is , a larger number of people who can afford more and more of goods and services. Even after forty years of independence our industrialists have not been able to shed their petty shopkeeper's mentality and our highly educated management has tagged along merrily and without concern.
1. What of the following short comings of Indian industrialists has been highlighted by the author?
a. They are reluctant to maintain the shopkeeper mentality
b. They are less concerned for payment of dividends to shareholders
c. They invest unreasonably high amount on diversification and expansion
d. They are more concerned for immediate net gains than for development activities
e. None of the above
2. The lending industrialists attribute industrial sickness mainly to
a. Higher profits and larger dividends to shareholders
b. Lack of foresight among managers
c. Lacunae in five - year plans
d. Pre- occupations of managers with matters unrelated to business
e. Inflation and other economic problems.
3. According to the passage, growth and increasing productivity lead to
a. Encouragement to export of excess consumer goods
b. Disproportionate surplus of commodities
c. imposition of restrictions on imports
d. Employment and thus provide an outlet to industrial and consumer products
e. None of the above
4. Why did Henry stress the need for a more stable middle class?
a. They can afford to buy more and more expensive goods
b. They are most unstable
c. They are mostly service oriented
d. They do not have shopkeeper mentality
e. None of the above
5. ' The planning horizon has hardly ever exceeded five years' implied
a. The planners are not inclined to think of the future
b. Planning should take care of all probable ups and downs in the next five-years period
c. Planning should not be for a period of less than five years
d. The planning process is very time consuming
e. Five- years period is too short for successful implementation of plants
6. According to the passage, the net gains pursued by managers are at the cost of
a. Inflation and Industrial sickness
b. Liberalisation of imports and increasing competition
c. Diversification, modernisation and asset creation
d. Availability of markets for industrial and consumer products
e. Higher profits and larger dividends to shareholders
7. In order to improve the condition of Indian industries, the industrialist should do all the following except
a. Encouraging competition from industries within the country and from abroad
b. Resorting to long-term planning for industrial growth and expansion in device fields
c. Giving up the narrow mentality which very small shopkeepers generally have
d. Striving to earn long term profits
e. Adopting strategies for diversification and modernisation.
Download Reading Comprehension Workbook here
