Each of these questions given below contains three elements. These elements…
2025
Each of these questions given below contains three elements. These elements may or may not have some inter linkage. Each group of elements may fit into one of these diagrams at (A), (B), (C), (D) and/or (E). You have to indicate the group of elements which correctly fits into the diagrams.Which of the following diagrams indicates the best relation between Profit, Dividend and Bonus ?
Attempted by 8 students.
Show answer & explanation
Concept: When one term is a broader category (a superset) and the other two terms are distinct items that both fall under it, the correct diagram is one large circle for the category with two smaller, non-overlapping circles fully inside it — each small circle stands for one item, both are part of the larger category but separate from each other.
Application: Here, Profit is the overall category — a company's total earnings. Dividend and Bonus are both amounts distributed out of profit, so each is entirely part of Profit; but they are different kinds of distributions from each other, so their circles must not overlap. This is shown by the diagram with one large circle for Profit and two small circles for Dividend and Bonus placed fully inside it, not touching each other.
Contrast with the other diagrams:
The diagram whose two smaller circles cross the boundary of the larger circle is wrong: crossing the boundary would mean part of Bonus and part of Dividend lie outside Profit, but both are entirely profit-derived.
The diagram with three circles that all mutually intersect is wrong: it treats Profit as a separate, overlapping element alongside Bonus and Dividend, rather than as the containing category for both.
The diagram with two overlapping circles inside the larger circle is wrong: overlapping circles would mean Bonus and Dividend share some common part, but they are distinct, non-overlapping distributions.
So the diagram with one large circle (Profit) containing two smaller, non-overlapping circles (Dividend and Bonus) fully inside it is correct.