ICSI Question papers Elements of Business Laws and Management Dec 2012

ICSI Question papers

Elements of Business Laws and Management

Dec 2012

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) Cross-offers constitute a valid contract between the parties.
(ii) Consideration must move from the promisee.
(iii) A person of unsound mind cannot be a partner of a firm.
(iv) A contract of sale of goods is a bilateral contract.
(v) The members of a private limited company do not have unlimited liability for
company’s debts.
(vi) The maker of a promissory note himself cannot be the payee.
(2 marks each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate word(s) :
(i) An agreement not enforceable by law is ____________.
(ii) A person who is appointed by the agent is known as ____________.
(iii) In ____________ bailment, no remuneration passes between the bailor and the
bailee.
(iv) A warranty is a stipulation which is ____________ to the main purpose of the
contract.
(v) ____________ is necessary for the existence of partnership.
(1 mark each)
(c) Mohan and Sohan jointly owe `1 lakh to Rohan. Mohan pays `1 lakh to Rohan. Sohan
not knowing it, also pays `1 lakh to Rohan. Is Rohan bound to return `1 lakh received
extra ? Give reasons.
(5 marks)
Elements of Business Laws and
Management

2. Distinguish between any three of the following :
(i) ‘Misrepresentation’ and ‘fraud’.
(ii) ‘Condition’ and ‘warranty’.
(iii) ‘Promissory note’ and ‘bill of exchange’.
(iv) ‘Managing director’ and ‘whole-time director’.
(5 marks each)
3. Attempt any three of the following :
(i) “Mere silence as to facts does not amount to fraud.” Comment.
(ii) Can the Central Government appoint directors in a company ? Explain.
(iii) Sharad, out of natural love and affection for his wife Seema, promised to give `10,000
to her as a birthday present. On the birthday, he however, refuses to carry out his promise.
Can Seema successfully sue Sharad for the amount ?
(iv) Binod finds a diamond ring of Anand and sells the same for `50,000 to Chirag who
purchases the ring for value and in good faith. Can Anand, the real owner recover
the ring from Chirag ? Explain.
(5 marks each)
4. Attempt any three of the following :
(i) What are the disadvantages of incorporation of a company ?
(ii) Write a note on ‘agency of necessity’.
(iii) “Not negotiable crossed cheque remains transferable.” Comment on the statement.
(iv) What is the object of holding an extraordinary general meeting of a company ? Who
can call such a meeting ?
(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) Staffing is concerned with the recruitment of only staff managers.
(ii) Informal communication is known as grapevine.
(iii) Employees resist change for the fear of unknown.
(iv) Co-operation without co-ordination is ineffective and co-ordination without
co-operation cannot be achieved.
(v) Planning involves decision-making.
(vi) Formal organisations emerge spontaneously.
(2 marks each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate word(s) :
(i) Blake and Mouton have suggested _________ as a theory of leadership.
(ii) Management by objectives (MBO) is a technique of _________.
(iii) Principles of management are _________ in nature.
(iv) PERT and CPM are the two important _________ techniques.
(v) Power is _________ concept than authority and includes authority.
(1 mark each)
(c) What is ‘planning’ ? Discuss the relationship between planning and controlling.
(5 marks)
6. Distinguish between any three of the following :
(i) ‘Administration’ and ‘management’.
(ii) ‘McGregor’s Theory-X’ and ‘McGregor’s Theory-Y’.
(iii) ‘Traditional control devices’ and ‘non-traditional control devices’.
(iv) ‘Delegation’ and ‘decentralisation’.
(5 marks each)

7. Attempt any three of the following :
(i) “Management is amalgamation of art and science.” Comment.
(ii) Briefly discuss ‘crosswise communication’.
(iii) What is ‘coordination’ ? Discuss the main principles of coordination.
(iv) What is ‘leadership’ ? Discuss the various styles of leadership.
(5 marks each)
8. Attempt any three of the following :
(i) Enumerate the benefits of training to an organisation and management.
(ii) Discuss in brief, the social responsibility of business towards customers and the
government.
(iii) “Budgetary control has both benefits as well as limitations.” Comment on this statement.
(iv) “Organisation development is a long range effort to improve an organisation’s problemsolving
and renewal processes.” Comment on this statement.
(5 marks each)

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