English: Error Spotting for Upcoming Exams – Set 155

Directions: In each of the following questions there are sentences. There is error in one of the parts. Mark the option which contains error parts as your answer. If no part contains error mark option E as your answer.

1. (A) The spatial dimension of economic disparity in India is well documented, /(B) including in my joint research with Praveen Chakravarty, published /(C) in these pages and elsewhere. In developing our research results on intra-(as opposed to purely inter-)state income inequality, /(D) we had to reckon with the paucity of reliable district-level data on economic activity. Our solution was to deploy a novel dataset of “nightlights” luminosity, generated by satellites of the US National Aeronautics and Space Administration (Nasa).
   A
   B
   C
   D
   NE
   Option E
   

    

2. (A) Most of the India is virtually dark at night, with a few bright spots representing the major cities. /(B) This is a reality worth recalling at a time when the government claims credit for having /(C) electrified the very last village—a process well in train under the previous government, when our last data was captured in 2013. Electrified in theory most of the rural hinterland may be, but it is not emitting terribly much light at night—suggesting that the /(D) levels of economic activity in these regions remain low as compared to the dynamic metropolitan areas.
   A
   B
   C
   D
   NE
   Option A
   

    

3. (A) The last element that must be stressed is that there is an important spatial dimension /(B) to the dualistic economic structure which the luminosity data reveals. /(C) In other words, both across states and across districts within each state, this is a wide, /(D) and widening, disparity in economic activity across regions.
   A
   B
   C
   D
   NE
   Option B
   which = that

    

4. (A) When a company becomes insolvent, numerous issues arise. /(B) Insolvency law is meant to address some of them, but not all. For the others, /(C) the solution must be found among non-insolvency laws. /(D) This distinction has been overlooked by Indian policymakers in their attempts to reform the Insolvency and Bankruptcy Code, 2016 (IBC).
   A
   B
   C
   D
   NE
   Option C
   among = in

    

5. (A) From the creditors’ perspective, the winner-grabs-it-all situation will /(B) make the business of extending credit more risky. Moreover, /(C) a company’s shareholders are the residual claimants with limited liability. /(D) When the company approaches insolvency, they have every incentive to engage in high-risk strategies.
   A
   B
   C
   D
   NE
   Option A
   

    

6. (A) A person who is disqualified from controlling an insolvent company, /(B) should also be disqualified from controlling a solvent company. /(C) There is no reason to have a different disqualification /(D) regime for insolvent companies.
   A
   B
   C
   D
   NE
   Option E
   

    

7. (A) If a company is declared a wilful defaulter by the RBI, /(B) the directors of such a company should be disqualified from being company directors under the Companies Act. /(C) This would ensure that a wilful defaulter cannot directly or indirectly /(D) control any company, including the insolvency business.
   A
   B
   C
   D
   NE
   Option D
   insolvency business = insolvent business.

    

8. (A) A time-honoured principle in insolvency law is that it should respect non-insolvency entitlements such as /(B) security interests. Put differently, the job of an insolvency law is to /(C) maximize the size of the pie, /(D) not to distort the distribution of the pie under non-insolvency laws.
   A
   B
   C
   D
   NE
   Option E
   

    

9. (A) If the insolvency law prejudices such entitlements of secured creditors, they would engage in strategic /(B) behaviour to opt out of collective insolvency proceedings. /(C) They could realized the collateral earlier than would be collectively optimal, /(D) so as to beat unsecured creditors in the race to grab assets.
   A
   B
   C
   D
   NE
   Option C
   could realized = could realize

    

10. (A) The UK Law Commission, in a 2016 report, suggested a range of non-insolvency law mechanisms /(B) (like trusts, insurance, digital payment laws) to protect consumer’s prepayments on retailer insolvency. /(C) In contrast, the ILC assumed that since the homebuyers’ problem arose /(D) during insolvency, the solution to it must lie in the insolvency law.
    A
    B
    C
    D
    NE
    Option B
    consumer’s prepayments = consumer prepayments