CS Foundation :: Elements of busines laws and Management : December 2004

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.)
 
1. (a) State, with reasons in brief, whether the following statements are true or false :
(i)

An aggrieved party can rescind the contract on account of fraud and can also claim damages from the other party.

(ii)A person can become an acceptor for honour of a bill of exchange only if his name is mentioned in the bill.
(iii)

A public company, having share capital, can commence business and exercise its powers immediately after it is incorporated.

(iv)A sleeping partner is also liable to the third parties for the debts of the firm.
(v)An unpaid seller can also stop the goods in transit even in those cases where the buyer is solvent.
(2 marks each)
(b) Write notes on any two of the following :
(i)Liquidated damages and penalty
(ii)Sale and hire purchase
(iii)Appointment of directors by the Board of directors
(iv)Association not for profit.
(5 marks each)
2. (a) Describe in brief the main sources of Indian mercantile law.
(5 marks )
(b) Explain and illustrate different kinds of endorsement.
(5 marks )
(c)

Arun is a shopkeeper. He enters into a contract with Bhanu, the wholesaler, for the supply of crackers worth Rs.1 lakh on the condition that the delivery must be made atleast 7 days before Diwali. Arun also makes known to Bhanu that if he fails to deliver the crackers in time, Arun is likely to suffer a loss of profit of Rs.25,000 which he expected to earn from the sale of crackers during Diwali season. But Bhanu supplies cracker 3 days after Diwali. Now Arun sues Bhanu for the loss of profit. Will Arun succeed ? Give reasons.
(5 marks )
3. (a) “A delegate cannot further delegate”. Explain the statement and give the exceptions to the rule.
(5 marks )
(b) Enumerate any five of the powers to be exercised by the Board of directors only at their meetings.
(5 marks )
(c)

Aman borrows Rs.200 from Bhuvan against the security of his wrist-watch. After a week’s time, Aman obtains the watch from Bhuvan for some reasons and then sells the same watch to Chandan, an innocent buyer, who has no knowledge about Bhuvan’s charge on the watch. Subsequently, Bhuvan disturbs Chandan’s possession and gets payment of Rs.200 from him. Now Chandan files a suit against Aman for recovery of Rs.200 from him. Will Chandan succeed ? Give reasons.
(5 marks )
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4. (a) What are the contracts of uberrimai fidei ? Give any four examples.
(5 marks )
(b) Define ‘negotiation’ and distinguish it from ‘assignment’.
(5 marks )
(c)

Anand is a heart patient. He goes to a heart institute and deposits Rs.2 lakh, the fixed charges for the operation. But before operation, the concerned doctor informs him that he will operate upon him correctly only if the patient promises to pay him Rs.50,000 more. Anand agrees to pay. However, after successful operation, Anand refuses to pay this extra amount. Now the doctor files a suit against the patient for breach of contract. Will the doctor succeed ? Give reasons.
(5 marks )
PART – B
(Answer Question No.5 which is compulsory
and any two of the rest from this part.)
 
5. (a) State, with reasons in brief, whether the following statements are true or false:
(i)Planning has to be adaptive to environment.
(ii)Co-ordination is a once for all exercise.
(iii)There is no difference between recruitment and selection.
(iv)Narrow span of management adversely affect employee morale.
(v)Line and staff relations in an organisation never become a potent source of friction.
(2 marks each )
(b) Write short notes on any two of the following:
(i)Job analysis
(ii)Departmentation by functions
(iii)Management by objectives
(iv)Systems approach to management.
(5 marks each )
6. (a) What do you understand by the the term ‘policy’ ? Explain its features and state its importance in management.
(8 marks )
(b) Discuss the process of ‘delegation of authority’ and explain its important principles.
(7 marks )
7. (a) Describe the benefits of training to an organisation and differentiate between ‘training’ and ‘development’ of personnel.
(8 marks )
(b) “Good communication is the basis for sound management.” Discuss. Also explain the essentials of an effective communication.
(7 marks )
8. (a) Discuss the causes and remedies for human resistance to change.
(8 marks )
(b) Explain the various approaches for examining leadership behaviour.
(7 marks )

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1/2005/EBLM

 

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