Instructions

Read the following scenario and answer the THREE questions that follow.
Comprehension:
Future Leaders is one of the most prestigious private schools in a small town, next to an industrial hub. Most of its students come from affluent families, but there are some who belong to middle-income and lower-middle-income families as well. The school charges an annual fee of ₹2 lakhs, inclusive of all charges, payable at the beginning of the academic year. Roughly 20% of the fees collected goes into paying the salaries of the teachers, another 30% for the upkeep of the school, and roughly 20% for miscellaneous expenses in running day-to-day businesses like supply, cleaning etc. The remaining goes into an exigency corpus.
This year, like the rest of the country, the town has been hit by the coronavirus pandemic. The classes have been shifted online. The local authorities have mandated that all schools have to reduce their fees by 20%. Further, parents should be given extended time to pay the fees if they are in financial distress. Six months into the academic year, only 40% of the parents have paid even the reduced annual fees.

Question 4.

Ajay Biswas, the rector of the school, is alarmed by the shortfall in fee payments and wants to find the best solution to manage the situation. He does not want to trouble parents who might be genuinely in financial distress, but feels that there may be a possibility that many parents are taking advantage of the situation.
Which of the following actions by the school will BEST make financially capable parents pay the fees?

A
Call parents every three days, requesting them to pay the fees and help their school out
B
Share through local newspapers that the school is facing financial crunch and may have to close down if parents don’t pay fees
C
Offer 10% and 5% discounts to parents paying fees within the next one week and two weeks respectively
D
Give a 10% bonus marks to all those students who have paid the fees

Question Explanation

Text Explanation

Option A: Calling parents frequently to school at the time of a pandemic is not a feasible option.

Option B: This might spread misinformation about the school's credibility and can leave a wrong impression.

Option C: Giving discounts to the kids from well-off families during the pandemic(or in general ) would be discrimination.

Option D: This will dilute the credibility of the school and will also be an example of discrimination.

Option E: This is the best way to deal with the situation as the one deserving will get some time after submitting the proof of their distress, and the ones pretending will have to pay the fees.

Thus, the correct option is E.

Video Explanation
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