1. 1
Test Series: October, 2015
MOCK TEST PAPER – 2
INTERMEDIATE (IPC): GROUP – I
PAPER – 2: BUSINESS LAWS, ETHICS AND COMMUNICATION
Question No.1 is compulsory
Attempt any five questions from the remaining six questions
Time Allowed – 3 Hours Maximum Marks – 100
1. (a) Pankaj appoints Shruti as his agent to sell his estate. Shruti, on looking over the
estate before selling it, finds the existence of a good quality Granite-Mine on the
estate, which is unknown to Pankaj. Shruti buys the estate himself after informing
Pankaj that she (Shruti) wishes to buy the estate for himself but conceals the
existence of Granite-Mine. Pankaj allows Shruti to buy the estate, in ignorance of
the existence of Mine. State giving reasons in brief the rights of Pankaj, the
principal, against Shruti, the agent.
What would be your answer if Shruti had informed Pankaj about the existence of
Mine before he purchased the estate, but after two months, he sold the estate at a
profit of
Rs.1 lac? (5Marks)
(b) Some of the creditors of Chawla Ltd. have complained that the company was
formed by the promoters only to defraud the creditors and circumvent the
compliance of legal provisions of the Companies Act, 2013. In this context they seek
your advice as to the meaning of corporate veil and when the promoters can be
made personally liable for the debts of the company. (5Marks)
(c) What is the difference between ‘Morals’ and ‘Ethics”? (5Marks)
(d) Explain the factors which are responsible for the growing importance of
communication of an organization. (5Marks)
2. (a) (i) What matters may not be taken into account while calculating direct tax
payable by the employer under the Payment of Bonus Act,1965. (4 Marks)
(ii) Explain as to when is the gratuity payable to an employee of an establishment,
under the provisions of the Payment of Gratuity Act, 1972. (4 Marks)
(b) What is Corporate Social Responsibility? Why it is needed in Indian Business
environment? (4 Marks)
(c) What are the tips for improving inter-personal skills in a business organization?
(4 Marks)
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2. 2
3. (a) What are the essential elements of a valid acceptance of a Bill of Exchange? An
acceptor accepts a “Bill of Exchange” but write on it “Accepted but payment will be
made when goods delivered to me is sold.” Decide the validity. (8 Marks)
(b) State with reasons whether the following statement is correct or incorrect:
Fairness and honesty are the pillars of success in business. (4 Marks)
(c) Write a note on ecological ethics (4 Marks)
4. (a) What is meant by a floating charge? State the characteristics of a floating charge.
When does a floating charge crystallise? (8 Marks)
(b) What is meant by ‘Environmental ethics’? How does its non-adoption lead to 3 Ps
Viz., Polluter Pays and Principles? Explain. (4 Marks)
(c) Write Short Notes On:Organization Values. (4Marks)
5. (a) Define a Private Company. Explain the procedure for conversion of a Public
Company into a Private Company. (8Marks)
(b) Deepak Ltd., desirous of buying back of all its equity shares from the existing
shareholders of the company, seeks your advice. Examining the provisions of the
Companies Act, 2013 advise whether the above buy back of equity shares by the
company is possible. Also state the sources out of which buy-back of shares can be
financed. (4 Marks)
(c) M/s. Assure Investments, a firm of partners A and B, appoint and authorize Mr. X
giving powers to sell and sign transfer deeds for transfer of shares and debentures
by executing an instrument of the "Power of Attorney". Draft such instrument of the
"Power of Attorney" of the firm. (4 Marks)
6. (a) (i) Explain the concept of “Deemed Prospectus” under the Companies Act, 2013.
(ii) Point out the circumstances where issuing the prospectus is not mandatory.
(8 Marks)
(b) Explain the extent to which it is possible to observe ethical behaviour in marketing.(4 Marks)
(c) Mr. A has not received a dividend warrant of Rs.1,500 for 150 shares of XYZ Ltd.
Draft an indemnity bond, to be given to the company for seeing release of Dividend.
(4Marks)
7. Answer any Four of the following:
(a) An employee of a limited company filed a claim for provident fund settlement with
the Provident Fund Commissioner. However, he did not get any settlement from the
authority even after six months. Referring to the EPF & MP Act, 1952 what course
of action an authority should have taken in this respect. (4Marks)
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3. (b) The Directors of a company registered and incorporated in the name “Jupiter Textile
India Ltd.” desire to change the name of the company entitled “Indian Textiles and
Industries Ltd.” Advise as to what procedure is required to be followed under the
Companies Act, 2013? (4Marks)
(c) When can a Public Company offer the new shares (further issue of shares) to
persons other than the existing shareholders of the Company? (4Marks)
(d) State, how far a sound ethical environment in a company may be created and
corporate scandals may be avoided. (4Marks)
(e) Draft a notice for ABC’s Annual General Meeting with four ordinary business.
(4Marks)
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