ICSI Previous Year Question papers Elements of Business Laws and Management Dec 2010

ICSI Previous Year Question papers

Elements of Business Laws and Management

Dec 2010

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8
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.
Attempt any five :
(i) Law is static, not dynamic.
(ii) Communication of offer is complete when letter of offer is posted.
(iii) A firm cannot be appointed as director of any company.
(iv) A partly-paid seller is not known as an unpaid seller.
(v) Order instruments can be negotiated by delivery only.
(vi) Wagering agreements are nothing but ordinary betting agreements.
(vii) As per the Indian Partnership Act, 1932, a minor cannot be admitted as a
partner in the partnership firm.
(2 marks each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) Minor’s ____________ is liable for necessaries provided to him.
(ii) A sub-agent is a person employed by the ____________.
(iii) An individual, at any point of time, cannot hold directorship of more than
____________ public companies.
(iv) A cheque must, usually, be presented within ____________ months.
(v) Law means a ____________ of rules.
(1 mark each)
(c) Define the term ‘consideration’ as per the Indian Contract Act, 1872. Can a
stranger to consideration sue upon the contract ?
(5 marks)
ELEMENTS OF BUSINESS LAWS AND MANAGEMENT

2. Distinguish between any three of the following :
(i) ‘Coercion’ and ‘undue influence’.
(ii) ‘General lien’ and ‘particular lien’.
(iii) ‘Sale’ and ‘agreement to sell’.
(iv) ‘Negotiation’ and ‘assignment’.
(5 marks each)
3. Attempt any three of the following :
(i) Summarise the provisions relating to annual general meeting.
(ii) What is a ‘hundi’ ? Describe some of the important types of hundis.
(iii) Ashok, Vijay and Ganesh are partners in a firm running a chemist shop. Vijay
buys three pair of shoes from Sturdy Shoe Store in the name of the firm on credit.
Will the firm be liable to make the payment ? Give reasons.
(iv) Explain, in brief, the various methods of crossing of a cheque.
(5 marks each)
4. Attempt any three of the following :
(i) Raman purchases a pastry from Standard Pastry Shop. It contained a piece of
stone which broke one of Raman’s teeth. What remedy has Raman against the
shop-keeper ? Give reasons.
(ii) Anil gives a guarantee to Kamal in January for supply of goods worth Rs.10,000
to Vimal on credit basis. The payment was to be made in April. However, Vimal
made the payment in March itself and again took goods on credit basis from
Kamal for the same amount but failed to pay. Now, Kamal files a suit against
Anil for the payment. Will Kamal succeed ? Give reasons.
(iii) When a banker must refuse payment of a cheque ?
(iv) “No one can pass a better title than he himself has.” Comment.
(5 marks each)
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.
Attempt any five :
(i) Planning is a pervasive function of management.
(ii) Leadership is the same thing as managership.
(iii) Controls are always bad and, therefore, resented.
(iv) Both responsibility and authority can be delegated.
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(v) Motivation and morale are conceptually different.
(vi) Coordination is not a function of management.
(vii) A good personnel policy should be both stable and flexible.
(2 marks each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) Leadership is the activity of _____________ people.
(ii) Chester Barnard is the pioneer of _____________ approach to management.
(iii) Theory-X is based on _____________ assumptions about human nature.
(iv) Henri Fayol has divided all activities of industrial enterprise into _____________
groups.
(v) The English word ‘motivation’ has been derived from the Latin word
_____________ which means to move.
(1 mark each)
(c) Discuss the importance of communication in management. What are the essentials
of effective communication ?
(5 marks)
6. Distinguish between any three of the following :
(i) ‘Formal organisation’ and ‘informal organisation’.
(ii) ‘Financial audit’ and ‘management audit’.
(iii) ‘Recruitment’ and ‘selection’.
(iv) ‘Delegation’ and ‘decentralisation’.
(5 marks each)
7. Attempt any three of the following :
(i) Explain the main steps in the process of decision-making.
(ii) Describe the various essential elements for a good control system.
(iii) Discuss important reasons of resistance to change.
(iv) Explain the term ‘zero base budgeting’ (ZBB).
(5 marks each)

8. Attempt any three the following :
(i) Explain the four pillars of classical theory of organisation.
(ii) Describe the nature and scope of project management.
(iii) Discuss the rationale of assuming social responsibility.
(iv) Elucidate the principles of direction.
(5 marks each)

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