How to solve XAT 2017 Question 9?

This question can be solved by applying the core concept explained in the solution above, followed by step-by-step calculation and elimination of options.

Which concept is tested in this question?

This question tests fundamental concepts commonly asked in XAT exams.

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XAT 2017 Question 9

This is a detailed step-by-step solution for XAT 2017 Question 9. Understand the concept, common mistakes, and expert tips to solve similar questions in XAT exam.

XAT

Option A: This option, if true, will incentivise cheating and hence is not the correct option.
Option B: This can be rejected on the same grounds as A.
Option C: Since this option is stating contrary to what happened, this is not the correct option.
Option D: If this option is true, then it would justify the increase in the stock price in a fair manner; acknowledgement of deceit increases the trust of investors in the company. Thus, this is the correct option.
Thus, the correct option is D.

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