CS Foundation :: Elements of busines laws and Management : June 2005

Roll No…………………
Time allowed : 3 hours	Maximum marks : 100
Total number of questions : 8	Total number of printed pages : 4
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)	The bailor may determine the bailment where the bailee wrongfully uses or disposes of the goods bailed.
(ii)	In a bill of exchange, there are two parties – a payer and a payee.
(iii)	Old coins may be treated as goods.
(iv)	Sharing of losses is an essential element of formation of a partnership.
(v)	A company can have both – a managing director and a manager.

(2 marks each)

(b)

Write notes on any two of the following :

(i)	Drawee in case of need
(ii)	Exemplary damages
(iii)	Doctrine of caveat emptor
(iv)	Association not for profit.

(5 marks each)

(a)

“Gratuitous promises are not enforceable by law.” Explain the statement.

(5 marks )

(b)

What is meant by ‘specific goods’ ? State the rules regarding passing of property from a seller to a buyer in a contract for the sale of specific goods.

(5 marks )

(c)

Arun has two cars — one of white colour and another of red colour. He offers to sell one of the cars to Basu thinking that he is selling the car which has white colour. Basu agrees to buy the car thinking that Arun is selling the car which has red colour. Will this agreement become a valid contract ? Give reasons.

(5 marks )

(a)

On a bill of exchange for Rs.10,000, Xavier’s acceptance to the bill is forged. Amit takes the bill from his customer in good faith and for consideration before the bill becomes payable. State with reasons whether Amit can receive the amount of the bill from Xavier.

(5 marks )

(b)

Mention briefly the various clauses of the memorandum of association of a company.

(5 marks )

(c)

Aman and Barun are partners carrying on the business of shoe making. Their firm is not registered. The firm purchases raw material worth Rs.20,000 on credit from Chetan. But the firm refuses to pay the price of raw material on the plea of its non-registration. Chetan institutes a suit against the firm to claim the amount due. Will Chetan succeed ? Give reasons.

(5 marks )

(a)

State the circumstances under which presentment of a bill of exchange for acceptance is excused.

(5 marks )

(b)

Rajesh, a director of Volatile Ltd., died in an air crash. It has been decided to appoint Kamal in his place. Will the company be required to call an extra-ordinary general meeting to approve of the latter’s appointment as a director ? When appointed, how long would Kamal remain in office ?

(5 marks )

(c)

Explain the legal position of a minor under the Indian Contract Act, 1872 for necessaries supplied to him.

(5 marks )

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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)	A budget is a numerical expression of plans.
(ii)	Consultative technique of direction allows the subordinates substantial freedom to use their skill and initiative in solving the problem.
(iii)	Management is primarily concerned with the tactful management of men.
(iv)	Organisation is the process of assembling various resources for carrying out some business.
(v)	Communication is a two way process.

(2 marks each )

(b)

Write notes on any two of the following :

(i)	Induction
(ii)	Action research
(iii)	Planning premises
(iv)	Concept of committees.

(5 marks each )

(a)

“Decision-making process involves deciding a course of action out of the available alternatives.” Explain.

(8 marks )

(b)

What is meant by ‘manpower planning’ ? Describe the various steps involved in manpower planning process.

(7 marks )

(a)

Briefly describe ‘communication media’. State various advantages and disadvantages of oral communication.

(8 marks )

(b)

Explain the ‘systems approach’ to organisation.

(7 marks )

(a)

Discuss the various factors that determine the degree of decentralisation in an organisation.

(8 marks )

(b)

Explain the important techniques of coordination.

(7 marks )

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1/2005/EBLM