business law

1 .   “The fundamental attribute of corporate personality is that company is a legal entity distinct from the members.”Elucidate the statement .Also specify the important features of a company.

2 .   Elaborately explain the essential features of the consumer protection act 1986. Also briefly discuss unfair trade practice and restrictive trade practice as discussed under consumer protection Act?

3 .   What are the characteristics of negotiable Instrument? Discuss the ‘privileges’ of holder in due course as per the provisions of the Negotiable Instruments Act, 1881? Also state the important amendment to be incorporated under sec 138 of the act.

4 .  Discuss the essential elements of a valid contract.

5 .   Write short notes on any three of the following. (a)      “A stranger to the consideration can enforce the contract”. Explain the

exceptions in the following.

Supervening Impossibility

ii-      Novation

(b)Anticipatory breach of Contract

                (c) A private company has only 2 shareholders who are also the directors

with equal rights of management and voting power. The company has made large

profits, but there is a complete deadlock in the management of the company. One of

the shareholders applied for the winding up of the company. Decide at what moment

does a winding up by the court commence?

(d)   What is a ‘Prospectus’? Is it obligatory for a company to file a prospectus or a

statement in lieu of prospectus with the Registrar of Companies?

(e)      What is meant by the rule of ‘Caveat Emptor’ and what are its exceptions?

6 . Explain - ‘different modes of crossing of a cheque’ and section 138 as per the provisions of the Negotiable Instrument Act, 1881.

7 . “A company is a legal person distinct from its members taken individually or collectively”. Comment. Also

S. No.

Questions Marks - 10

1 .   a. Should the titles of controller and treasurer be adopted

under Indian context? Would you like to modify their functions in view of the company practice in India? Justify your opinion?  

b. A firm purchases a machinery for Rs. 8,00,000 by making a down payment of Rs.1,50,000 and remainder in equal installments of Rs. 1,50,000 for six years. What is the rate of interest to the firm?

 

2 .      Explain the mechanism of calculating the present value of cash flows.What is

annuity due? How can you calculate the present and future values of an annuity due? Illustrate

”The increase in the risk-premium of all stocks, irrespective of their beta is the same when risk aversion increases” Comment with practical examples 

3 .               How leverage is linked with capital structure? Take example of a MNC and

Analyze.  

b.  The following figures relate to two companies                                                                           P LTD.              Q LTD.                                                                        (In Rs. Lakhs)            Sales                                                    500                   1,000                Variable costs                                       200                      300                                                                        ----                    -------            Contribution                                          300                      700            Fixed costs                                           150                      400                                                                        ----                    -------

300Interest                                                  50                      100                                                            ----                    -------Profit before Tax                                   100                      200                                                            ----                    -------You are required to: 

Calculate the operating, financial and combined leverages for the two companies ; and 

Comment on the relative risk position of them

4 .

       a. Define various concepts of cost of capital. Explain the procedure of

calculating weighted average cost of capital. 

b.The following items have been extracted from the liabilities side of the balance sheet of XYZ  Company as on 31st December 2005.   Paid up capital:        4, 00,000 equity shares of Rs.10 each                                       40, 00,000Loans:     16% non-convertible debentures                                                   20, 00,000       12% institutional loans                                                                 60, 00,000   Other information about the company as relevant is given below as on 31st December 2005                                                      Dividend                        Earning            Average market price                                                                                                                                                                                                       per share                        per share               per share                                                           7.2                             10.50                              65 You are required to calculate the weighted average cost of capital, using book values as weights and earnings/price ratio as the basis of cost of equity. Assume19.2% tax rate

5 .        A company has issued debentures of Rs. 50 Lakhs to be repaid after 7 years. How

much should the company invest in a sinking fund earning 12% in order to be able to repay debentures? Show the procedure of loan amortization and capital recovery through an example.

A bank has offered to you an annuity of Rs. 1,800 for 10 years if you invest Rs. 12,000 today. What is the rate of return you would earn?

6 . The proforma of cost-sheet of HLL provides the following data.                                                                  

  

Cost (per unit): Rs.   

Raw materials 52.0Direct labour 19.5Overheads 39.0Total cost (per unit): 110.5Profit 19.5

Selling price 130.0

 The following is the additional information available:

    Average raw material in stock: one month;     Average materials in process: half month;     Credit allowed by suppliers: one month;     Credit allowed to debtors: two months;     Time lag in payment of wages: one and half weeks;     Overheads: one month.     One-fourth of sales are on cash basis.     Cash balance expected to be Rs. 12,000.             You are required to prepare a statement showing the working capital needed o finance a level of activity of 70,000 units of output. You may assume that

production is carried on evenly throughout the year and wages and overheads accrue similarly. 

7 .         a. Through quantitative analysis prove that PI (Profitability Index) is

a better technique than NPV (Net Present Value) in Capital Budgeting.                                                                                                          

b. A company is considering the following investment projects:  

       

a.Rank the project according to each of the following methods:    (1.) Payback, (2.) ARR, (3.) IRR, (4.) NPV assuming discount rates of 10 and 30 per cent.

Assuming the project is independent, which one should be accepted? If the projects are mutually exclusive, which project is the best? 

 Projects

Cash Flows (Rs.)

 

Co C1 C2 C3

 A

 - 10,000

 + 10,000

 -----

 -----

 B

 - 10,000

 + 7,500

 + 7,500

 -----

 C

 - 10,000

 + 2,000

 + 4,000

 + 12,000

 D

 - 10,000

 + 10,000

 + 3,000

 + 3,000

8 . a.     ”     Firm should follow a policy of very high dividend pay-out.” Taking example of two organization comment on this statement.  b.  An investor gains nothing from bonus share “Critically analyze the statement through some real life situation of recent past.

Please give your answer in at least 25 words and press save and continue button.Ques. No.

Answer

1 . What do you mean by Human Resource Management? Also discuss, in brief, both the ‘managerial’ and the ‘operative functions’ of Human Resource Management.

2 . Define the term ‘Human Resource Planning’. Also explain, in brief, the process of Human Resource Planning.

3 . Discuss the significance of Job Description, Job Analysis Job, Enlargement &Job Enrichment

4 . Discuss, in brief, the methods of training.

5 . What are the skills required by executives? Also explain the methods of developing such skills.

6 .   Distinguish between ‘Performance Appraisal’ and ‘Potential Appraisal’.

Also discuss, in brief, the methods of performance appraisal.

7 . Distinguish between ‘Monetary Rewards’ and ‘Non - Monetary Rewards’. Also enlist various types of monetary and non-monetary rewards.

 

8 . Write short notes on any three of the following: a. Emerging HR issues in knowledge industryb. Incentive plans for operative staffc. Functions of Trade Uniond. The Expatriate Problems

e. Existing machinery for settlement of industrial disputes in our country

1 . “Food Mania” is a chain of fast food restaurants located in major metropolitan areas in the south. Sales have been growing very slowly for the last two years. Management has decided to add some new items to the menu, but first they want to know more about their customers and their preferences.

  List two Hypothesis   What kind of research design is appropriate? Why?

2 . Develop a plan for conducting a focus group to determine consumers’ attitudes towards and preferences for imported automobiles. Specify the objectives of the focus group, write a screening questionnaire, and develop a moderato’s outline.

3 . You are in the marketing research department of a firm specializing in developing decision support system (DSS) for the health care Industry. Your firm would like to measure the attitudes of hospital administrators towards DSS. The interview would be conducted by telephone. You have been asked to develop an appropriate scale for this purpose. Management would like you to explain and justify your reasoning in constructing the scale.

4 . After receiving some complaints from readers, your campus newspaper decides to redesign its front page. Two new formats B and C were developed and tested against the current format,’ A.’ A total of 75 students were randomly selected and 25 students were randomly assigned to each of three format conditions. The students were asked to evaluate the effectiveness of the format on an 11-point scale. ( 1 = Poor, 11 = excellent )

  State the null hypothesis  What statistical test should you use?  What are the degrees of freedom associated with the test statistic?

5 . Describe the appropriate target population and the sampling frame in each of the following situations:

  The manufacturer of a new cereal brands want to conduct in home product usage test in Chicago.

  A national chain store wants to determine the shopping behavior of customers who have in store charge card.

  A local TV station wants to determine households’ viewing habits and programming preferences.

  The local chapter of the American Marketing Association wants to test the effectiveness of its new member’s drive in Atlanta.

  A distance education institute wants to determine effectiveness of its management programme launched 3 years ago. 

6 . Develop a series of questions for determining the proportion of households with children under age 10 where child abuse takes place. Use the randomized response technique.

7 . A manufacturer would like to survey users to determine the demand potential for a new power press. The new press has a capacity of 500 tons and cost $225,000.It is used for forming products from lightweight ad heavyweight steel can be used by automobile, construction equipment and major appliance manufacturers.  

  Identify the population and sampling frame that could be used.  Describe how a simple random sample can be drawn using the identified sampling

frame.  Could a stratified sample be used? If so, how?  Could a cluster sample be used? If so, how?  Which sampling technique would you recommend? Why?

8 . A major department store chain is having an end –of –season sale on refrigerators. The number of refrigerators sold during this sale at a sample of 10 stores was 59.

  Is there evidence that an average of more than 50 refrigerators per store were sold during this sale? Use alpha = 0.05

   What assumption is necessary to perform this test?

Please give your answer in at least 25 words and press save and continue button.

1 . How has quantitative analysis changed the current scenario in the management world today?

2 . What are sampling techniques? Briefly explain the cluster sampling technique.

3 . What is the significance of Regression Analysis? How does it help a manager in the decision making process?

4 . Explain the following terms in detail (give examples where necessary):   Arithmetic mean  Harmonic mean  Geometric mean  Median  Mode

5 . Explain the classical approach to the probability theory. Also explain the limitation of classical definition of probability.

6 . Write a note on decision making in management. How one will take decision under risk and uncertainty.

7 . The Mumbai Cricket Club, a professional club for the cricketers, has the player who led the league in batting average for many years. Over the past ten years, Amod Kambali has achieved a mean batting average of 54.50 runs with a standard deviation of 5.5 runs. This year Amod played 25 matches and achieved an average of 48.80 runs only. Amod is negotiating his contract with the club for the next year, and the salary he will be able to obtain is highly dependent upon his ability to convince the team’s owner that his batting average this year was not significantly worse than in the previous years. The selection committee of the club is willing to use a 0.01 significance level.You are required to find out whether Amod’s salary will be cut next year.

8 . The salaries paid to the managers of a company had a mean of Rs. 20,000 with a standard deviation of Rs 3,000, What will be the mean and standard deviation if all the salaries are increased by

  10%