XAT Decision Making

Analyse the following caselet and answer the question that follows:

Genius Consulting is a boutique consulting firm started by Shirish, Balram, Rahman and Xavier, four friends from a premier business school. They committed themselves to abide by two principles: a) not to indulge in anything unethical and b) share earnings equally.

Genius Consulting could not get a significant project till the following year, when they managed a big one after Rahman’s father referred their firm to his top management. Convinced of the team’s talent following an impressive presentation, the top management awarded them the project even though six other referred teams made presentations.

The day following the presentations, they met to decide the way forward for the organization. Which of the following choices would be the most appropriate for Genius Consulting?

  1. As this project violates both their principles, Genius consulting should not take up the project.
  2. Due to the violation of the first principle Genius consulting should not take up this project.
  3. They should take up the project. Further, since Rahman had agreed to equal sharing, he is not entitled to finder’s fee.
  4. They should take up the project and as the referral helped them survive, Rahman should be paid finder’s fee.
  5. They should take up the project. But, in order not to violate the principles, Rahman can be paid finder’s fee this year and an equal amount be deducted from his compensation the next year.

Answer

The top management awarded the project after being convinced of the team’s talent following an impressive presentation. All other competitors were also referred teams, so the first principle is not violated.

The correct option is C.