The Institute of Company Secretaries of India 2006 CS Foundation %2C - Elements of Business Laws and Management - Question Paper

CS Foundation Examination, June 2006
Elements of Business Laws and Management

Roll No…………………
Time allowed: three hours
Maximum marks: 100
Total number of questions: eight

PART – A
(Answer ques. No.1 which is compulsory and any 2 of the rest from this part.)

1.
(a) State, with reasons in brief, whether the subsequent statements are actual or false: (2 marks each)
(i) Communication of offer is complete when letter of offer is posted.
(ii) Consideration is essential for the purpose of creation of a contract of agency.
(iii) An unregistered firm can institute a suit to claim its dues from the 3rd party.
(iv) A promissory note is a two-party instrument.
(v) A public company having share capital can commence business immediately after its incorporation.

(b) Write notes on any 2 of the following: (5marks each)
(i) Continuing guarantee
(ii) Not-negotiable crossing
(iii) Clauses of a memorandum of association
(iv) Legal position of a partner.

2.
(a) Explain the meaning of ‘contingent contract’ and state the rules relating to such contracts. (5marks)

(b) “Risk prima facie passes with the ownership.” Comment. (5marks)

(c) Ajay agrees to sell his old car to Bijoy for Rs.1 lakh or Rs.80,000. Is it a valid contract ? provide
reasons. (5marks)

3.
(a) What is ‘agency by ratification’ ? elaborate the requisites of a valid ratification? (5marks)

(b) Define the term ‘negotiation’. Distinguish ranging from ‘negotiation’ and ‘assignment’. (5marks)

(c) “A certificate of incorporation is a conclusive evidence that all the requirements of the Companies
Act, 1956 in respect of incorporation of a company have been duly complied with.” Comment.
(5marks)

4.
(a) Who is an ‘unpaid seller’? When can the unpaid seller resell the goods?(5marks)

(b) What is the difference ranging from ‘dishonour by nonacceptance’ and ‘dishonour by non-payment’ of a
bill? (5marks)

(c) Kirti, who is trying to sell an unsound horse, forges a veterinary surgeon’s certificate stating the horse to be sound, and pins it to the stable door. Prem comes to examine the horse, but the certificate gets unnoticed by him. He buys the horse and later on obtains the horse to be unsound. He wants to avoid the agreement on the ground that he has been defrauded. Will he succeed? (5marks)


PART—B
(Answer ques. No.5 which is compulsory and any 2 of the rest from this part.)


5.
(a) State, with reasons in brief, whether the subsequent statements are actual or false: (2 marks each)
(i) An informal organisation is the network of personal and social relationships which is not established
or needed by formal organisations.
(ii) ‘Transactional analysis’ means analysis of financial transactions in a business.
(iii) There is no difference ranging from leadership and management.
(iv) Planning is a pervasive function.
(v) Delegation is individual whereas decentralisation is totalistic.

(b) Write notes on any 2 of the following: (5 marks each)
(i) Appraisal by outcomes
(ii) Maslow’s theory of need hierarchy
(iii) Mathematical approach to management
(iv) Cross-wise communication.

6.
(a) What do you understand by ‘span of management’? discuss the factors which determine span of
management. (8 marks)

(b) Describe ‘managerial grid’. Which is the best leadership style within the grid and why? (7 marks)

7.
(a) What is the ‘directing’ function of management? explain the principles of direction. (8 marks)

(b) Distinguish ranging from ‘functional form of departmentation’ and ‘product form of departmentation’.
define with the help of diagrams and illustrations. (7 marks)

8.
(a) Discuss the requirement of an effective control system. (8 marks)

(b) What are the disadvantages of management through committees? Suggest the ways to avoid them. (7
marks)

Earning:   Approval pending.