CS Foundation :: Elements of busines laws and Management : December 2003

Roll No…………………
Time allowed : 3 hours	Maximum marks : 100
Total number of questions : 8	Total number of printed pages : 3
PART – A
(Answer Question No.1 which is compulsory and any two of the rest from this part.)

(a)

State, with reasons in brief, whether the following statements are true or false :

(i)	A guarantee given for minor’s debt is void.
(ii)	When goods sold by sample as well as description correspond with the sample only, then the buyer can reject the goods.
(iii)	All cheques are bills of exchange, but all bills of exchange are not cheques.
(iv)	Registration of a partnership firm is compulsory under the Indian Partnership Act, 1932.
(v)	A private limited company must obtain certificate of commencement of business before it commences business.

(2 marks each)

(b)

Distinguish between any two of the following :

(i)	‘Void agreement’ and ‘illegal agreement’.
(ii)	‘Gratuitous bailment’ and ‘bailment for reward’.
(iii)	‘Joint Hindu family’ and ‘partnership’.

(5 marks each)

(a)

Explain in brief the doctrine of quantum meruit.

(5 marks )

(b)

When does a ‘condition’ become a ‘warranty’ and vice versa ?

(5 marks )

(c)

An auctioneer advertised in the newspaper that a sale of office furniture will be held at Bangalore. Ajay, a broker of Mumbai, reached Bangalore on the appointed date and time. But the auctioneer withdrew all the office furniture from the auction sale. The broker sued for his loss of time and expenses. Will he succeed ?

(5 marks )

(a)

What are the rights and liabilities of a minor as a partner in a partnership firm ?

(5 marks )

(b)

What do you mean by ‘payment in due course’ ?

(5 marks )

(c)

Write a note on ‘association not for profit’.

(5 marks )

(a)

“Liability of the surety is co-extensive with that of the principal debtor.” Explain with an illustration.

(5 marks )

(b)

What are the consequences of dishonour of a cheque ?

(5 marks )

(c)

A company has not convened any annual general meeting for the last two years. What can be done by a member who is interested that the meeting should be held ?

(5 marks )

2/2003/EBLM

P.T.O.

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: 2 :

PART – B

(Answer Question No.5 which is compulsory
and any two of the rest from this part.)

(a)

State, with reasons in brief, whether the following statements are true or false :

(i)	Planning precedes control.
(ii)	Coordination is different from cooperation.
(iii)	Grapevine channel of communication helps in solving various organisational problems.
(iv)	Management audit is compulsory for every limited company.
(v)	No manager can be successful without understanding peoples’ motivation.

(2 marks each )

(b)

Write notes on any two of the following :

(i)	Employment tests
(ii)	Zero base budgeting
(iii)	Span of control.

(5 marks each )

Distinguish between any three of the following :

(i)	‘Interpersonal behaviour approach’ and ‘group behaviour approach’.
(ii)	‘Financial audit’ and ‘management audit’.
(iii)	‘Exploitative-authoritarian leader’ and ‘participative-democratic leader’.
(iv)	‘Planning’ and ‘controlling’.

(5 marks each )

(a)

What are the qualities of a good leader ?

(7 marks )

(b)

“Forecasting is an indispensable element of planning.” Comment.

(8 marks )

(a)

Bring out the nature and objectives of the budgetary control.

(7 marks )

(b)

“Change is a natural phenomenon.” Comment. Describe the major factors which act as stimulants to change.

(8 marks )

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2/2003/EBLM