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Para-jumble Sentences
26. The four sentences (labelled 1, 2, 3, and 4) given in this question, when properly sequenced, form a coherent paragraph. Decide on the proper order for the sentences and key in this sequence of four numbers as your answer.
1. It was his taxpayers who had to shell out as much as $1.6bn over 10 years to employees of failed companies.
2. Companies in many countries routinely engage in such activities which means that the employees are left with unpaid entitlements.
3. Deliberate and systematic liquidation of a company to avoid liabilities and then restarting the business is called phoenixing.
4. The Australian Minister for Revenue and Services discovered in an audit that phoenixing had cost the Australian economy between $2.9bn and $5.1bn last year.
Solution with Explanation
Answer: 3241
Detailed explanation by Wordpandit:
Sentence-3 introduces the concept of phoenixing – hence it would make the opening line.
Next, Sentence-2 continues the topic of phoenixing, by stating that it happens in many countries, and the impact is felt by employees.
Between Sentence 1 & 4, 1 begins with “it was his taxpayers..” which implies that there must be a prior sentence which mentions a specific person. Sentence-4 does that by explaining that the Australian Minister discovered the financial impact of phoenixing. Sentence-1 would follow to describe the amount that the taxpayers actually had to pay.
Hence, 3241 is the correct sequence.
Word-1: Entitlements
Context:
"Companies in many countries routinely engage in such activities which means that the employees are left with unpaid entitlements." - Source Unknown
Explanatory Paragraph:
"Entitlements" refer to benefits, rights, or claims that individuals are legally or contractually owed, particularly in the context of employment or social welfare. In this context, it refers to payments or compensations (like leave, severance, or bonuses) that employees rightfully deserve but may not receive due to corporate malpractice. The word often carries a formal or legal tone, signaling obligations that must be fulfilled.
Meaning: Legal or contractual rights to receive certain benefits or payments (Noun – plural)
Pronunciation: en-TY-tuhl-ments
Difficulty Level: ⭐⭐⭐ Intermediate
Etymology: From "entitle," derived from Old French *entituler* and Latin *titulus* (title, claim)
Prashant Sir's Notes:
This word appears often in legal, corporate, and political discussions. It’s important not to confuse “entitlements” with “privileges” — the former implies rights; the latter, optional benefits. Pay attention to context: is the entitlement being respected or denied?
Synonyms & Antonyms:
Synonyms: rights, benefits, claims, allowances, dues
Antonyms: denials, forfeitures, exclusions, disqualifications
Usage Examples:
- Employees are legally entitled to receive their leave and severance entitlements upon resignation.
- The government has increased social entitlements for senior citizens.
- Many workers are unaware of their full entitlements under the law.
- The company’s bankruptcy left many employees without their financial entitlements.
Cultural Reference:
"Entitlement programs" like Social Security and Medicare in the U.S. provide citizens with guaranteed benefits based on legal criteria.
Think About It:
Should entitlements always be guaranteed, or should they be based on conditions such as contribution or need?
Quick Activity:
List three entitlements you have as a student or employee. Are you aware of how to claim them?
Memory Tip:
“Entitlements” come from being *entitled* to something — think of a title that grants you a benefit or right.
Real-World Application:
Understanding entitlements is crucial in employment contracts, government policies, and social welfare programs to ensure fair treatment and accountability.
Word-2: Systematic
Context:
"Deliberate and systematic liquidation of a company to avoid liabilities and then restarting the business is called phoenixing." - Source Unknown
Explanatory Paragraph:
"Systematic" describes something that is carried out using an organized, methodical, and deliberate approach. In the context of phoenixing, it refers to how certain companies intentionally and carefully follow a plan to liquidate and restart, thereby avoiding liabilities. The word often suggests structure, planning, and consistency, whether used in business, science, or daily routines.
Meaning: Done or acting according to a fixed plan or system; methodical (Adjective)
Pronunciation: sis-tuh-MA-tik
Difficulty Level: ⭐⭐⭐ Intermediate
Etymology: From Greek *systematikos*, meaning “combined in a whole”
Prashant Sir's Notes:
Don't confuse "systematic" with "systemic." The former refers to method or procedure (planned and organized), while the latter means something affecting an entire system. When studying patterns, solutions, or behaviors, ask if they are random or systematic.
Synonyms & Antonyms:
Synonyms: methodical, organized, structured, planned, logical
Antonyms: random, chaotic, haphazard, disorganized
Usage Examples:
- The scientist followed a systematic process to conduct the experiment.
- The company underwent a systematic restructuring to improve efficiency.
- She takes a systematic approach to problem-solving.
- Systematic errors can distort the outcome of research if not accounted for.
Cultural Reference:
"Systematic oppression" — a term used in sociology and politics to describe organized and institutionalized discrimination.
Think About It:
Why do you think being systematic is often associated with professionalism and reliability?
Quick Activity:
Think of a task you do daily. Write 3 steps to turn it into a more systematic process.
Memory Tip:
“Systematic” comes from “system” — if it follows a system, it’s systematic!
Real-World Application:
"Systematic" thinking is critical in fields like engineering, science, law, and business where precision, consistency, and planning lead to successful outcomes.
Word-3: Liquidation
Context:
"Deliberate and systematic liquidation of a company to avoid liabilities and then restarting the business is called phoenixing." - Source Unknown
Explanatory Paragraph:
"Liquidation" refers to the process of closing a business and converting its assets into cash, often in order to pay off debts. In the context of phoenixing, it implies that a company is intentionally shut down and its resources are sold, not because it has failed, but as a strategy to avoid legal and financial responsibilities before restarting under a new name. The term can also be used in financial and legal discussions regarding bankruptcy and asset distribution.
Meaning: The process of dissolving a company by selling its assets to pay off debts (Noun)
Pronunciation: lik-wi-DAY-shuhn
Difficulty Level: ⭐⭐⭐ Intermediate
Etymology: From Latin *liquidare*, meaning “to melt, make liquid” – metaphorically extending to converting assets into cash
Prashant Sir's Notes:
This term is very relevant in business studies and financial news. Don’t confuse it with just “liquid” – here it means making things “liquid” in the sense of turning non-cash assets into cash. Watch for its use in cases of fraud or strategic restructuring.
Synonyms & Antonyms:
Synonyms: dissolution, winding up, selling off, closing down, bankruptcy
Antonyms: establishment, expansion, investment, acquisition
Usage Examples:
- The company entered liquidation after accumulating massive debts.
- During liquidation, all company assets were auctioned to repay creditors.
- The court appointed a liquidator to oversee the liquidation process.
- Strategic liquidation is sometimes used to restructure business operations.
Cultural Reference:
The Enron scandal involved a massive corporate collapse followed by the liquidation of assets to pay creditors — a defining case in financial ethics and law.
Think About It:
Should companies be allowed to deliberately liquidate in order to escape financial accountability and restart under a new identity?
Quick Activity:
Find a news article about a recent business liquidation. What were the main reasons behind it? Was it ethical?
Memory Tip:
Think of “liquid” money — liquidation means turning everything into cash or liquid assets.
Real-World Application:
Liquidation plays a crucial role in business law, corporate restructuring, and bankruptcy proceedings, often impacting employees, creditors, and investors.
Word-4: Liabilities
Context:
"Deliberate and systematic liquidation of a company to avoid liabilities and then restarting the business is called phoenixing." - Source Unknown
Explanatory Paragraph:
"Liabilities" are financial or legal obligations that a person or organization is responsible for. In business, these typically refer to debts or commitments like loans, salaries, or payments owed to suppliers. In the context of phoenixing, companies dissolve themselves to avoid paying these liabilities, which is often unethical and illegal. The term is widely used in accounting, finance, and law to assess the financial health of an entity.
Meaning: Legal or financial obligations or debts (Noun – plural)
Pronunciation: lie-uh-BIL-uh-teez
Difficulty Level: ⭐⭐⭐ Intermediate
Etymology: From Latin *ligare*, meaning “to bind”; evolved from legal terminology into accounting usage
Prashant Sir's Notes:
In accounting, liabilities are always listed on the balance sheet. They include anything a company owes — from rent to salaries. Don’t confuse it with “liability” in casual speech, where it can mean a person who causes trouble (e.g., “He’s a liability to the team”). Context is key.
Synonyms & Antonyms:
Synonyms: debts, obligations, responsibilities, dues, burdens
Antonyms: assets, resources, advantages, profits
Usage Examples:
- The company was unable to meet its liabilities and filed for bankruptcy.
- Short-term liabilities must be paid within one year.
- Insurance protects businesses from certain financial liabilities.
- All liabilities are recorded in the company’s balance sheet under liabilities and equity.
Cultural Reference:
During the 2008 financial crisis, many banks were burdened with toxic liabilities — risky debts that triggered massive global repercussions.
Think About It:
Why do you think laws exist to prevent businesses from walking away from liabilities? What would happen if they didn’t?
Quick Activity:
List three examples of liabilities a student might have. How are these different from those of a business?
Memory Tip:
“Liabilities” = things you’re *liable* for = things you *owe*. If assets are what you have, liabilities are what you must give back.
Real-World Application:
Understanding liabilities is crucial for personal finance, business management, and investment decisions—it’s how we measure financial responsibility and risk.
Word-5: Phoenixing
Context:
"Deliberate and systematic liquidation of a company to avoid liabilities and then restarting the business is called phoenixing." - Source Unknown
Explanatory Paragraph:
"Phoenixing" is a term used in business and corporate law to describe the unethical or illegal practice where a company is deliberately liquidated to escape debts and liabilities, and then a new company is formed—often with the same assets, directors, or purpose. The name is drawn from the mythological phoenix, a bird that is reborn from its ashes. In this case, the business 'rises again' while avoiding previous obligations, often harming creditors, employees, and tax authorities.
Meaning: The practice of closing a company to avoid liabilities and starting a new one using the same assets or people (Noun – informal)
Pronunciation: FEE-niks-ing
Difficulty Level: ⭐⭐⭐⭐ Advanced
Etymology: Derived from the mythical bird *phoenix*, symbolizing rebirth; adapted metaphorically in business contexts
Prashant Sir's Notes:
This is a relatively new and technical term. It’s important in legal, economic, and policy discussions. While inspired by mythology, it carries a negative connotation in business due to its links to fraud and exploitation. Always used in negative or cautionary contexts.
Synonyms & Antonyms:
Synonyms: fraudulent rebirth, corporate resurrection (informal), sham restart
Antonyms: legitimate restructuring, honest bankruptcy, ethical closure
Usage Examples:
- The authorities are cracking down on phoenixing to protect creditors and workers.
- Phoenixing allows unethical directors to escape financial accountability.
- New legislation aims to reduce instances of phoenixing in the construction sector.
- Phoenixing undermines trust in the business environment and harms small suppliers.
Cultural Reference:
The term is inspired by the *phoenix* of ancient mythology—a bird that burns and is reborn from its ashes, symbolizing renewal. In the business world, however, "phoenixing" represents unethical rebirth.
Think About It:
Should stricter laws be enforced globally to prevent phoenixing, or are there scenarios where business rebirth is justifiable?
Quick Activity:
Write down how phoenixing could impact employees, creditors, and customers of the original company.
Memory Tip:
Think of the phoenix — a bird that rises from its ashes. In business, phoenixing means a company is 'reborn' to escape its past mess.
Real-World Application:
Phoenixing is a key concern in corporate regulation. Authorities in countries like Australia and the UK have introduced laws to combat it, as it leads to major losses in tax revenue and damages business trust.
