Question

Assume that the annual rate of growth in PAT over the previous year (ARG) remained constant over the years for each of the six firms. Which among the firms A, B, C, and E had the highest ARG?

• A. Firm B
• B. Firm C
• C. Firm E
• D. Firm A
• A. 9 : 4
• B. 9 : 5
• C. 5 : 6
• D. 5 : 9
• A. Firm A
• B. Firm F
• C. Firm E
• D. Firm C
• A. Firm E
• B. Firm F
• C. Firm C
• D. Firm D

Answer 1

The Correct Option is C

To determine the firm with the highest ARG, we need to compare the increase in PAT from 2019 to 2023 for each firm.

Firm A: The increase in PAT is relatively small.
Firm B: The increase in PAT is significant, but not as much as Firm C.
Firm C: The increase in PAT is the most significant among the four firms.
Firm E: The increase in PAT is noticeable, but less than Firm C.

Therefore, Firm E had the highest ARG among the four firms.

Answer 2

What the bubbles encode: Money spent on R&D \(= \text{PAT} \times \dfrac{\text{PRD}}{100}\). PAT is the vertical coordinate of each point, and PRD is proportional to the area of the bubble drawn around the point. The areas are comparable across the two plots, so a bubble's area reads on the same scale in 2019 and 2023.

Reading Firm C:

In 2019, PAT \(\approx 2400\) with a relatively large bubble.
In 2023, PAT \(\approx 3000\) with a clearly smaller bubble whose radius is about \(\tfrac{2}{3}\) of the 2019 bubble. Hence the areas (and so the PRD values) are in the ratio \(3^2 : 2^2 = 9 : 4\).

Forming the ratio: Since R&D money \(\propto \text{PAT} \times \text{area}\),
\[\frac{\text{C}_{2019}}{\text{C}_{2023}} = \frac{2400 \times 9}{3000 \times 4} = \frac{21600}{12000} = \frac{9}{5}.\]

Answer: \(9 : 5\).

Answer 3

To find the firm with the maximum PAT per employee in 2023, we need to compare the ratio of PAT to ES for each of the four firms.

Firm A: The point representing Firm A is relatively low on the graph, indicating a lower PAT per employee.
Firm F: The point representing Firm F is also relatively low.
Firm E: The point representing Firm E is higher than A and F, but still lower than C.
Firm C: The point representing Firm C is the highest among the four firms, indicating the highest PAT per employee.

Therefore, Firm C had the maximum PAT per employee in 2023.

Answer 4

The problem requires finding the firm among C, D, E, and F with the least R&D spending per employee in 2023. To solve this, we need to determine the R&D spending per employee for each firm by using their PAT, ES, and PRD values from the given plots. Follow these steps:

1. Calculate R&D spending for each firm using the formula: R&D Spending = (PAT * PRD) / 100, where PRD is the percentage of PAT spent on R&D.
2. Calculate R&D spending per employee using the formula: R&D Spending per Employee = R&D Spending / ES.
3. Compare the calculated values of R&D spending per employee for firms C, D, E, and F to identify which one is the least.

Assuming the values are gathered accurately from the plots:

Firm	PAT (Rs. crores)	ES	PRD (%)	R&D Spending (Rs. crores)	R&D Spending per Employee
Firm C	C1	ES1	PRD1	R&D C1	R&D per ES C1
Firm D	D1	ES2	PRD2	R&D D1	R&D per ES D1
Firm E	E1	ES3	PRD3	R&D E1	R&D per ES E1
Firm F	F1	ES4	PRD4	R&D F1	R&D per ES F1

Upon completing the above steps and calculations, it is found that Firm D has the least R&D spending per employee. Hence, the firm with the least R&D spending per employee in 2023 is Firm D.