The Institute of Company Secretaries of India 2006 CS Foundation , - Elements of Business Law And Management - Question Paper

CS Foundation Examination, Dec. 2006
Elements of Business legal regulations And Management

RollNo..........................
Time allowed : three hours
Maximum marks : 100
Total number of ques. : eight
Total number of printed pages : four

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) A contract for the sale of future goods is always known as an agreement to sell.

(ii) A partner can be expelled from a firm only with the consent of all the partners.

(iii) A private company is needed to file a statement in lieu of prospectus with the Registrar of Companies before allotting its shares.

(iv) Revocation of offer does not take effect until it is truly communicated to the offered.

(v) A promissory note is a three-party instrument.


(b) Write notes on any 2 of the subsequent : (5 marks each)

(i) Sub-agent

(ii) Statutory meeting

(iii) Auction sales

(iv) Forged endorsement.

2.
(a) Distinguish ranging from ‘dissolution of partnership’ and ‘dissolution of partnership firm’. (5 marks)

(b) Under what circumstances can an aggrieved party institute a suit for ‘injunction’ and for ‘specific performance’ of a contract? discuss with examples. (5 marks)

(c) Ajeet, owner of an apple orchard, believes that all the apple trees in his orchard are fruit-bearing trees. However, he has no sufficient ground for his belief. Even then, Ajeet states to Baljeet that his orchard has all fruit-bearing trees. Induced by this statement, Baljeet purchases the orchard. Later on, it is obtained that only 50% trees are fruit-bearing. Now, Baljeet files a suit for the repudiation of the contract. Will Baljeet succeed ? provide reasons. (5 marks)

3.
(a) “Sharing of profits of a business is a prima facie evidence of partnership, but not a conclusive evidence.” Comment on this statement. (5 marks)

(b) “Goods can be pledged by the owner only.” explain. State the circumstances in which the goods can be pledged by non-owners. (5 marks)
(c) Aashish owes Bupesh Rs.1 lakh. Aashish draws a crossed cheque for this amount in favour of Bupesh. Aashish dies and the cheque is afterwards obtained among his papers. Now, Bupesh gets this cheque and claims payment. Will Bupesh succeed ? provide reasons. (5 marks)

4.
(a) Amar, Bimal and Chander are partners of a firm carrying on banking business. Dhruv, a customer of the firm, deposits his ornaments with the firm for safe custody. Amar and Bimal sell these ornaments and misappropriate the money. Chander, being a sleeping partner, does not know anything about this act of Amar and Bimal. Now, Dhruv institutes a suit against the firm including all the partners. Chander intends to escape his liability on the ground of being a sleeping partner. Will Chander succeed ? provide reasons. (5 marks)

(b) Explain the powers of the company which can be exercised only at Board meetings. (5 marks)

(c) Roshan purchases a desktop computer from Harish on Harish’s plea that though the stated computer is used, it is in an excellent condition. Later on, Roshan obtains that the computer does not work at all. Can he reject the purchase of the stated computer and recover his money ? provide reasons. (5 marks)


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) Management and administration are synonymous.

(ii) Organisational structure should not be static.

(iii) Functional departmentation and functional foremanship are the identical.

(iv) Control may be viewed merely as a post mortem of past achievements and performance.

(v) Selection is a process of searching for prospective employees and encouraging them to apply.

(b) Write notes on any 2 of the following: (5 marks each)

(i) Innovation and the manager

(ii) Hierarchy of needs

(iii) Dynamic organisation structure

(iv) Strategic point control.

6.
(a) “A good leader is 1 who understands his subordinates, their needs and their sources of satisfaction.” discuss. (8 marks)

(b) Define the term ‘delegation of authority’. elaborate the barriers to delegation of authority? (7 marks)

7.
(a) describe ‘span of control’. What factors influence the span of control? (8 marks)
(b) explain the importance of forecasting as an element of planning. (7 marks)

8. (a) What do you mean by ‘appraisal by results’ ? discuss its main features. (8 marks)

(b) What is ‘budgetary control’? define the essential elements of budgetary control. (7 marks)

Earning:   Approval pending.