SIKKIM MANIPAL UNIVERSITY

Masters of Business AdministrationAssignment ( Sem.-III) Specialization- Project Management

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MB 0050 Research Methodology(Book ID: B1206)

Assignment Set- 1

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Q1. a. Differentiate between nominal, ordinal, interval and ratio scales, with an example of each. b. What are the purposes of measurement in social science research? Ans. 1a .Levels of Measurement Measurement may be classified into four different levels, based on the characteristics of order, distance and origin. 1. Nominal measurement This level of measurement consists in assigning numerals or symbols to different Categories of a variable. Example of male and female applicants to an MBA program mentioned earlier is an example of nominal measurement. The numerals or symbols are just labels and have no quantitative value. The numbers of cases under each category are counted. Nominal measurement is therefore the simplest level of measurement. It does not have characteristics such as order, distance or arithmetic origin. 2. Ordinal measurement

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In this level of measurement, persons or objects are assigned numerals which indicate ranks with respect to one or more properties, either in ascending or descending order. Example: - Individuals may be ranked according to their socio-economic class, which is measured by a combination of income, education, occupation and wealth. The individual with the highest score might be assigned rank 1, the next highest rank 2, and so on, or vice versa. The numbers in this level of measurement indicate only rank order and not equal distance or absolute quantities. This means that the distance between ranks 1 and 2 is not necessarily equal to the distance between ranks 2 and 3. Ordinal scales may be constructed using rank order, rating and paired comparisons. Variables that lend themselves to ordinal measurement include preferences, ratings of organizations and economic status. Statistical techniques that are commonly used to analyze ordinal scale data are the median and rank order correlation coefficients. 3. Interval measurement This level of measurement is more powerful than the nominal and ordinal levels of Measurement, since it has one additional characteristic equality of distance. However, it does not have an origin or a true zero. This implies that it is not possible to multiply or divide the numbers on an interval scale. Example: - The Centigrade or Fahrenheit temperature gauge is an example of the interval level of measurement. A temperature of 50 degrees is exactly 10 degrees hotter than 40 degrees and 10 degrees cooler than 60 degrees. Since interval scales are more powerful than nominal or ordinal scales, they also lend themselves to more powerful statistical techniques, such as standard deviation, product moment correlation and t tests and F tests of significance. 4. Ratio measurement This is the highest level of measurement and is appropriate when measuring characteristics which have an absolute zero point. This level of measurement has all the three characteristics order, distance and origin. Examples:- Height, weight, distance and area. Since there is a natural zero, it is possible to multiply and divide the numbers on a ratio scale. Apart from being able to use all the statistical techniques that are used with the nominal, ordinal and4|Page

interval scales, techniques like the geometric mean and coefficient of variation may also be used. The main limitation of ratio measurement is that it cannot be used for characteristics such as leadership quality, happiness, satisfaction and other properties which do not have natural zero points. The different levels of measurement and their characteristics may be summed up. In the table below Levels of measurement Characteristics Nominal No order, distance or origin Ordinal Order, but no distance or origin Interval Both order and distance, but no origin Ratio Order, distance and origin Ans. 1 b. Definition and Purpose of Measurement Different definitions of measurement have been offered by different authors 1. According to Stevens, measurement is the assignment of numerals to objects or events according to rules. A simple example of assignment of numerals according to a rule is described below Suppose a survey is conducted to study the applicants of an MBA program and one of the objectives of the study is to find out the sex-wise break-up of applicants. In this case, we may assign the number 0 to male applicants and the number 1 to female applicants. Thus numbers may be used to label individuals, events or things. 2. Campbell defines measurement as the assignment of numbers to represent properties. 3. In the words of Torgerson, measurement is the assignment of numbers to objects to represent amounts or degrees of a property possessed by all of the objects. In research, it is necessary to distinguish between objects and5|Page

properties or characteristics of these objects. For example, a person is an object and his/her physical characteristics include height, weight, color, etc. while his or her psychological characteristics include intelligence and attitudes. The important point to remember is that the researcher is concerned with measuring properties and not the objects themselves. While physical properties may be directly observed, psychological properties such as intelligence are inferred. For example, a childs score in an IQ test indicates his or her level of intelligence. Measurement also has several purposes The researcher constructs theories to explain social and psychological phenomena (e.g. labor unrest, employee satisfaction), which in turn are used to derive hypotheses or assumptions. These hypotheses can be verified statistically only by measuring the variables in the hypotheses. Measurement makes the empirical description of social and psychological phenomena easier. Example When conducting a study of a tribal community, measuring devices help the researcher in classifying cultural patterns and behaviors. Measurement also makes it possible to quantify variables and use statistical techniques to analyze the data gathered. Measurement enables the researcher to classify individuals or objects and to compare them in terms of specific properties or characteristics by measuring the concerned variables. Examples Comparison of male and female students performance in college exams or of length of stay on the job of older and younger employees. Q2. a. What are the sources from which one may be able to identify research problems? b. Why literature survey is important in research? Ans. 1 a. Meaning of Research Problem Research really begins when the researcher experiences some difficulty, i.e., a problem demanding a solution within the subject-are of his discipline. This general area of interest, however, defines only the range of subject-matter within which the researcher would see and pose a specific problem for research. Personal values play an important role in the selection of a topic for research. Social conditions do often shape the preference of investigators in a subtle and imperceptible way.6|Page

The formulation of the topic into a research problem is, really speaking the first step in a scientific enquiry. A problem in simple words is some difficulty experienced by the researcher in a theoretical or practical situation. Solving this difficulty is the task of research. R. L. Ackoffs analysis affords considerable guidance in identifying problem for research. He visualizes five components of a problem. 1) Research-consumer: There must be an individual or a group which experiences some difficulty. 2) Research-consumers Objectives: The research-consumer must have available, alternative means for achieving the objectives he desires. 3) Alternative Means to Meet the Objectives: The research-consumer must have available, alternative means for achieving the objectives he desires. 4) Doubt in Regard to Selection of Alternatives: The existence of alternative courses of action in not enough; in order to experience a problem, the research consumer must have some doubt as to which alternative to select. 5) There must be One or More Environments to which the Difficulty or Problem Pertains: A change in environment may produce or remove a problem. A research-consumer may have doubts as to which will be the most efficient means in one environment but wouldhave no such doubt in another. Objectives: After studying this unit you should be able to understand: The meaning of Research Problem Choosing the problem Review of Literature Criteria for formulating the problem Objective of Formulating the Problem Techniques involved in Formulating the Problem Criteria of Good Research Problem 3.2 Choosing the Problem The selection of a problem is the first step in research. The term problem means a7|Page

question or issue to be examined. The selection of a problem for research is not an easy task; it self is a problem. It is least amenable to formal methodological treatment. Vision, an imaginative insight, plays an important role in this process. One with a critical, curious and imaginative mind and is sensitive to practical problems could easily identify problems for study. The sources from which one may be able to identify research problems or develop problems awareness are: Review of literature Academic experience Daily experience Exposure to field situations Consultations Brain storming Research Intuition Ans. 2 b. Review of Literature Frequently, an exploratory study is concerned with an area of subject matter in which explicit hypothesis have not yet been formulated. The researchers task then is to review the available material with an eye on the possibilities of developing hypothesis from it. In some areas of the subject matter, hypothesis may have been stated by previous research workers. The researcher has to take stock of these various hypotheses with a view to evaluating their usefulness for further research and to consider whether they suggest any new hypothesis. Sociological journals, economic reviews, the bulletin of abstracts of current social sciences research, directory of doctoral dissertation accepted by universities etc afford a rich store of valuable clues. In addition to these general sources, some governmental agencies and voluntary organizations publish listings of summaries of research in their special fields of service. Professional organizations, research groups and voluntary organizations are a constant source of information about unpublished works in their special fields. Q3. a. What are the characteristics of a good research design? b. What are the components of a research design?8|Page

Ans. 3 a. Needs of Research Design The need for the methodologically designed research:1.

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In many a research inquiry, the researcher has no idea as to how accurate the results of his study ought to be in order to be useful. Where such is the case, the researcher has to determine how much inaccuracy may be tolerated. In a quite few cases he may be in a position to know how much inaccuracy his method of research will produce. In either case he should design his research if he wants to assure himself of useful results. In many research projects, the time consumed in trying to ascertain what the data mean after they have been collected is much greater than the time taken to design a research which yields data whose meaning is known as they are collected. The idealized design is concerned with specifying the optimum research procedure that could be followed were there no practical restrictions.

Characteristics of a Good Research Design 1. It is a series of guide posts to keep one going in the right direction. 2. It reduces wastage of time and cost. 3. It encourages co-ordination and effective organization. 4. It is a tentative plan which undergoes modifications, as circumstances demand, when the study progresses, new aspects, new conditions and new relationships come to light and insight into the study deepens. 5. It has to be geared to the availability of data and the cooperation of the informants. 6. It has also to be kept within the manageable limits Ans3 b. Components of Research Design It is important to be familiar with the important concepts relating to research design. They are: 1. Dependent and Independent variables: A magnitude that varies is known as a variable. The concept may assume different quantitative values, like height, weight, income, etc. Qualitative variables are not quantifiable in the strictest sense of objectivity. However, the qualitative phenomena may also be quantified in terms of the9|Page

presence or absence of the attribute considered. Phenomena that assume different values quantitatively even in decimal points are known as continuous variables. But, all variables need not be continuous. Values that can be expressed only in integer values are called noncontiguous variables. In statistical term, they are also known as discrete variable. For example, age is a continuous variable; where as the number of children is a noncontinuous variable. When changes in one variable depends upon the changes in one or more other variables, it is known as a dependent or endogenous variable, and the variables that cause the changes in the dependent variable are known as the independent or explanatory or exogenous variables. For example, if demand depends upon price, then demand is a dependent variable, while price is the independent variable. And if, more variables determine demand, like income and prices of substitute commodity, then demand also depends upon them in addition to the own price. Then, demand is a dependent variable which is determined by the independent variables like own price, income and price of substitute. 2. Extraneous variable: The independent variables which are not directly related to the purpose of the study but affect the dependent variable are known as extraneous variables. For instance, assume that a researcher wants to test the hypothesis that there is relationship between childrens school performance and their self-concepts, in which case the latter is an independent variable and the former, the dependent variable. In this context, intelligence may also influence the school performance. However, since it is not directly related to the purpose of the study undertaken by the researcher, it would be known as an extraneous variable. The influence caused by the extraneous variable on the dependent variable is technically called as an experimental error. Therefore, a research study should always be framed in such a manner that the dependent variable completely influences the change in the independent variable and any other extraneous variable or variables. 3. Control: One of the most important features of a good research design is to minimize the effect of extraneous variable. Technically, the term control is used when a researcher designs the study in such a manner that it minimizes the effects of extraneous independent variables. The term control is used in experimental research to reflect the restrain in experimental conditions. 4. Confounded relationship: The relationship between dependent and independent variables is said to be confounded by an extraneous variable, when the dependent variable is not free from its effects.10 | P a g e

5. Research hypothesis: When a prediction or a hypothesized relationship is tested by adopting scientific methods, it is known as research hypothesis. The research hypothesis is a predictive statement which relates a dependent variable and an independent variable. Generally, a research hypothesis must consist of at least one dependent variable and one independent variable. Whereas, the relationships that are assumed but not be tested are predictive statements that are not to be objectively verified are not classified as research hypothesis. 6. Experimental and control groups: When a group is exposed to usual conditions in an experimental hypothesis-testing research, it is known as control group. On the other hand, when the group is exposed to certain new or special condition, it is known as an experimental group. In the afore-mentioned example, the Group A can be called a control group and the Group B an experimental one. If both the groups A and B are exposed to some special feature, then both the groups may be called as experimental groups. A research design may include only the experimental group or the both experimental and control groups together. 7. Treatments: Treatments are referred to the different conditions to which the experimental and control groups are subject to. In the example considered, the two treatments are the parents with regular earnings and those with no regular earnings. Likewise, if a research study attempts to examine through an experiment regarding the comparative impacts of three different types of fertilizers on the yield of rice crop, then the three types of fertilizers would be treated as the three treatments. 8. Experiment: An experiment refers to the process of verifying the truth of a statistical hypothesis relating to a given research problem. For instance, experiment may be conducted to examine the yield of a certain new variety of rice crop developed. Further, Experiments may be categorized into two types namely, absolute experiment and comparative experiment. If a researcher wishes to determine the impact of a chemical fertilizer on the yield of a particular variety of rice crop, then it is known as absolute experiment. Meanwhile, if the researcher wishes to determine the impact of chemical fertilizer as compared to the impact of bio-fertilizer, then the experiment is known as a comparative experiment. 9. Experiment unit: Experimental units refer to the predetermined plots, characteristics or the blocks, to which the different treatments are applied. It is worth mentioning here that such experimental units must be selected with great caution.11 | P a g e

Q.4.a. Distinguish between Doubles sampling and multiphase sampling. b. What is replicated or interpenetrating sampling? Ans.4.a. DOUBLE SAMPLING Definition: A standard form of sample design for industrial inspection purposes. In accordance with the characteristics of a particular plan, two samples are drawn, n1 and n2, and the first sample inspected. The batch can then be accepted or rejected upon the results of this inspection or the second sample be inspected and the decision made upon the combined result. Double sampling plans was invented to give a questionable lot another chance. For example, if in double sampling the results of the first sample are not conclusive with regard to accepting or rejecting, a second sample is taken. Application of double sampling requires that a first sample of size n1 is taken at random from the (large) lot. The number of defectives is then counted and compared to the first sample's acceptance number a1 and rejection number r1. Denote the number of defectives in sample 1 by d1 and in sample 2 by d2, then: If d1 a1, the lot is accepted. If d1 r1, the lot is rejected. If a1 < d1 < r1, a second sample is taken. If a second sample of size n2 is taken, the number of defectives, d2, is counted. The total number of defectives is D2 = d1 + d2. Now this is compared to the acceptance number a2 and the rejection number r2 of sample 2. In double sampling, r2 = a2 + 1 to ensure a decision on the sample. If D2 If D2 a2, the lot is accepted. r2, the lot is rejected.

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MULTI-PHASE SAMPLING

Definition: It is sometimes convenient and economical to collect certain items of information from the whole of the units of a sample and other items of usually more detailed information from a sub-sample of the units constituting the original sample. This may be termed two-phase sampling, e.g. if the collection of information concerning variate, y, is relatively expensive, and there exists some other variate, x, correlated with it, which is relatively cheap to investigate, it may be profitable to carry out sampling in two phases. At the first phase, x is investigated, and the information thus obtained is used either (a) to stratify the population at the second phase, when y is investigated, or (b) as supplementary information at the second phase, a ratio or regression estimate being used. Two-phase sampling is sometimes called "double sampling". Multistage sampling is a complex form of cluster sampling. Advantages cost and speed that the survey can be done in convenience of finding the survey sample normally more accurate than cluster sampling for the same size sample Disadvantages Is not as accurate as SRS if the sample is the same size More testing is difficult to do

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Using all the sample elements in all the selected clusters may be prohibitively expensive or not necessary. Under these circumstances, multistage cluster sampling becomes useful. Instead of using all the elements contained in the selected clusters, the researcher randomly selects elements from each cluster. Constructing the clusters is the first stage. Deciding what elements within the cluster to use is the second stage. The technique is used frequently when a complete list of all members of the population does not exist and is inappropriate.

Ans.4.b. Replication is not the same as repeated measurements of the same item: they are dealt with differently in statistical experimental design and data analysis. For proper sampling, a process or batch of products should be in reasonable statistical control; inherent random variation is present but variation due to assignable (special) causes is not. Evaluation or testing of a single item does not allow for item-to-item variation and may not represent the batch or process. Replication is needed to account for this variation among items and treatments. Example: As an example, consider a continuous process which produces items. Batches of items are then processed or treated. Finally, tests or measurements are conducted. Several options might be available to obtain ten test values. Some possibilities are: One finished and treated item might be measured repeatedly to obtain ten test results. Only one item was measured so there is no replication. The repeated measurements help identify observational error. Ten finished and treated items might be taken from a batch and each measured once. This is not full replication because the ten samples are not random and not representative of the continuous nor batch processing. Five items are taken from the continuous process based on sound statistical sampling. These are processed in a batch and tested twice each. This includes replication of initial samples but does not allow for batch-to-batch variation in processing. The repeated tests on each provide some measure and control of testing error. 14 | P a g e

Five items are taken from the continuous process based on sound statistical sampling. These are processed in five different batches and tested twice each. This plan includes proper replication of initial samples and also includes batch-to-batch variation. The repeated tests on each provide some measure and control of testing error. Each option would call for different data analysis methods and yield different conclusions Q5. a. How is secondary data useful to researcher? b. What are the criteria used for evaluation of secondary data? Ans. 5 a. Advantages of Secondary Data 1. Secondary data, if available can be secured quickly and cheaply. Once their source of documents and reports are located, collection of data is just matter of desk work. Even the tediousness of copying the data from the source can now be avoided, thanks to Xeroxing facilities. 2. Wider geographical area and longer reference period may be covered without much cost. Thus, the use of secondary data extends the researchers space and time reach. 3. The use of secondary data broadens the data base from which scientific generalizations can be made. 4. Environmental and cultural settings are required for the study. 5. The use of secondary data enables a researcher to verify the findings bases on primary data. It readily meets the need for additional empirical support. The researcher need not wait the time when additional primary data can be collected Ans. 5 b. Evaluation of Secondary Data When a researcher wants to use secondary data for his research, he should evaluate them before deciding to use them. 1. Data Pertinence The first consideration in evaluation is to examine the pertinence of the available15 | P a g e

secondary data to the research problem under study. The following questions should beconsidered. What are the definitions and classifications employed? Are they consistent ? What are the measurements of variables used? What is the degree to which they Conform to the requirements of our research? What is the coverage of the secondary data in terms of topic and time? Does this Coverage fit the needs of our research? On the basis of above consideration, the pertinence of the secondary data to the research on hand should be determined, as a researcher who is imaginative and flexible may be able to redefine his research problem so as to make use of otherwise unusable available data. 2. Data Quality If the researcher is convinced about the available secondary data for his needs, the next step is to examine the quality of the data. The quality of data refers to their accuracy, reliability and completeness. The assurance and reliability of the available secondary data depends on the organization which collected them and the purpose for which they were collected. What is the authority and prestige of the organization? Is it well recognized? Is it noted for reliability? It is capable of collecting reliable data? Does it use trained and well qualified investigators? The answers to these questions determine the degree of confidence we can have in the data and their accuracy. It is important to go to the original source of the secondary data rather than to use an immediate source which has quoted from the original. Then only, the researcher can review the cautionary ands other comments that were made in the original source. 3. Data Completeness The completeness refers to the actual coverage of the published data. This depends on the methodology and sampling design adopted by the original organization. Is the methodology sound? Is the sample size small or large? Is the sampling method appropriate? Answers to these questions may indicate the appropriateness and adequacy of the data for the problem under study. The question of possible bias should also be examined. Whether the purpose for which the original organization collected the data had a particular orientation? Has the study been made to promote the organizations own interest? How the study was conducted? These are important clues. The researcher must be on guard when the source does not report16 | P a g e

the methodology and sampling design. Then it is not possible to determine the adequacy of the secondary data for the researchers study. Q 6. What are the differences between observation and interviewing as methods of data collection? Give two specific examples of situations where either observation or interviewing would be more appropriate. Ans. 6:- Observation means viewing or seeing. Observation may be defined as a systematic viewing of a specific phenomenon in its proper setting for the specific purpose of gathering data for a particular study. Observation is classical method of scientific study. Observation as a method of data collection has certain characteristics. 1. It is both a physical and a mental activity: The observing eye catches many things that are present. But attention is focused on data that are pertinent to the given study. 2. Observation is selective: A researcher does not observe anything and everything, but selects the range of things to be observed on the basis of the nature, scope and objectives of his study. For example, suppose a researcher desires to study the causes of city road accidents and also formulated a tentative hypothesis that accidents are caused by violation of traffic rules and over speeding. When he observed the movements of vehicles on the road, many things are before his eyes; the type, make, size and colour of the vehicles, the persons sitting in them, their hair style, etc. All such things which are not relevant to his study are ignored and only over speeding and traffic violations are keenly observed by him. 3. Observation is purposive and not casual: It is made for the specific purpose of noting things relevant to the study. It captures the natural social context in which persons behaviour occur. It grasps the significant events and occurrences that affect social relations of the participants. 4. Observation should be exact and be based on standardized tools of research and such as observation schedule, social metric scale etc., and precision instruments, if any. Interviewing is one of the prominent methods of data collection.17 | P a g e

It may be defined as a two way systematic conversation between an investigator and an informant, initiated for obtaining information relevant to a specific study. It involves not only conversation, but also learning from the respondents gesture, facial expressions and pauses, and his environment. Interviewing requires face to face contact or contact over telephone and calls for interviewing skills. It is done by using a structured schedule or an unstructured guide. Interviewing may be used either as a main method or as a supplementary one in studies of persons. Interviewing is the only suitable method for gathering information from illiterate or less educated respondents. It is useful for collecting a wide range of data from factual demographic data to highly personal and intimate information relating to a persons opinions, attitudes, values, beliefs past experience and future intentions. When qualitative information is required or probing is necessary to draw out fully, and then interviewing is required. Where the area covered for the survey is a compact, or when a sufficient number of qualified interviewers are available, personal interview is feasible. Interview is often superior to other data-gathering methods. People are usually more willing to talk than to write. Once report is established, even confidential information may be obtained. It permits probing into the context and reasons for answers to questions. Interview can add flesh to statistical information. It enables the investigator to grasp the behavioural context of the data furnished by the respondents. Observation is suitable for a variety of research purposes. It may be used for studying (a) The behavior of human beings in purchasing goods and services.: life style, customs, and manner, interpersonal relations, group dynamics, crowd behavior, leadership styles, managerial style, other behaviours and actions; (b) The behaviour of other living creatures like birds, animals etc. (c) Physical characteristics of inanimate things like stores, factories, residences etc. (d) Flow of traffic and parking problems. (e) Movement of materials and products through a plant.

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MB 0050 Research MethodologyAssignment Set- IIQ1.a. Explain the General characteristics of observation19 | P a g e

b. What is the Utility of Observation in Business Research? Ans.1 a. General Characteristics of Observation Method Observation as a method of data collection has certain characteristics. 1. It is both a physical and a mental activity: The observing eye catches many things that are present. But attention is focused on data that are pertinent to the given study. 2. Observation is selective: A researcher does not observe anything and everything, but selects the range of things to be observed on the basis of the nature, scope and objectives of his study. 3. Observation is purposive and not casual: It is made for the specific purpose of noting things relevant to the study. It captures the natural social context in which persons behaviour occur. It grasps the significant events and occurrences that affect social relations of the participants. 4. Observation should be exact and be based on standardized tools of research Ans.1b. Use of Observation in Business Research Observation is suitable for a variety of research purposes. It may be used for studying (a) The behaviour of human beings in purchasing goods and services (b) The behaviour of other living creatures like birds, animals etc. (c) Physical characteristics of inanimate things like stores, factories, residences etc. (d) Flow of traffic and parking problems (e) movement of materials and products through a plant. 2. a. Briefly explain Interviewing techniques in Business Research? b. What are the problems encountered in Interview? Ans.2 a. Interviewing techniques in Business Research The interview process consists of the following stages:1. Preparation :The interviewing requires some preplanning and preparation. The interviewer should keep the copies of interview schedule/guide ready to use. He should have the list of names and addresses of respondents, he should regroup them into20 | P a g e

contiguous groups in terms of location in order to save time and cost in traveling. The interviewer should find out the general daily routine of the respondents in order to determine the suitable timings for interview. 2. Introduction The investigator is a stranger to the respondents. Therefore, he should be properly introduced to each of the respondents.After getting himself introduced to the respondent in the most appropriate manner, the interviewer can follow a sequence of procedures as under, in order to motivate the respondent to permit the interview: 1. With a smile, greet the respondent in accordance with his cultural pattern. 2. Identify the respondent by name. 3. Describe the method by which the respondent was selected. 4. Mention the name of the organization conducting the research. 5. Assure the anonymity or confidential nature of the interview. 6. Explain their usefulness of the study. 7. Emphasize the value of respondents cooperation 3. Developing Rapport Before starting the research interview, the interviewer should establish a friendly relationship with the respondent. This is described as rapport. It means establishing a relationship of confidence and understanding between the interviewer and the respondent.4. Carrying the Interview Forward

After establishing rapport, the technical task of asking questions from the interview schedule starts. This task requires care, self-restraint, alertness and ability to listen with understanding, respect and curiosity. 5. Additional Sittings In the case of qualitative interviews involving longer duration, one single sitting will not do, as it would cause interview weariness. Hence, it is desirable to have two or more sittings with the consent of the respondent. 6. Recording the Interview

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It is essential to record responses as they take place. If the note taking is done after the interview, a good deal of relevant information may be lost. Nothing should be made in the schedule under respective question. It should be complete and verbatim. The responses should not be summarized or paraphrased. 7. Closing the Interview After the interview is over, take leave off the respondent thanking him with a friendly smile. In the case of a qualitative interview of longer duration, select the occasion for departure more carefully. Assembling the papers for putting them in the folder at the time of asking the final question sets the stage for a final handshake, a thank-you and a good-bye. Ans.2 b. The problems encountered in Interview1. Non-availability

Some respondents may not be available at home at the time of call. This depends upon the nature of the respondent and the time of calls. 2. Refusal Some persons may refuse to furnish information because they are ill-disposed, or approached at the wrong hour and so on 3. Inaccessibility Some respondents may be inaccessible. Some may not be found due to migration and other reasons. Q3. a. What are the various steps in processing of data? b. How is data editing is done at the Time of Recording of Data? Ans.3 a. Meaning of Data Processing Data processing is an intermediary stage of work between data collections and data interpretation. Processing of data requires advanced planning and this planning may cover such aspects as identification of variables, hypothetical relationship among the variables and the tentative research hypothesis. The various steps in processing of data may be stated as:22 | P a g e

Identifying the data structures Editing the data Coding and classifying the data Transcription of data Tabulation of data.

Checking for Analysis In the data preparation step, the data are prepared in a data format, which allows the analyst to use modern analysis software such as SAS or SPSS. The major criterion in this is to define the data structure. A data structure is a dynamic collection of related variables and can be conveniently represented as a graph where nodes are labelled by variables. Editing The next step in the processing of data is editing of the data instruments. Editing is a process of checking to detect and correct errors and omissions. Data editing happens at two stages, one at the time of recording of the data and second at the time of analysis of data. i.Completeness: The first step of editing is to check whether there is an answer to all the questions/variables set out in the data set. If there were any omission, the researcher sometimes would be able to deduce the correct answer from other related data on the same instrument. If this is possible, the data set has to rewritten on the basis of the new information. ii.Accuracy: Apart from checking for omissions, the accuracy of each recorded answer should be checked. A random check process can be applied to trace the errors at this step. Consistency in response can also be checked at this step. iii.Uniformity: In editing data sets, another keen lookout should be for any lack of uniformity, in interpretation of questions and instructions by the data recorders. Coding :23 | P a g e

The edited data are then subject to codification and classification. Coding process assigns numerals or other symbols to the several responses of the data set. It is therefore a pre-requisite to prepare a coding scheme for the data set. The recording of the data is done on the basis of this coding scheme. i.Numeric Coding: Coding need not necessarily be numeric. It can also be alphabetic. Coding has to be compulsorily numeric, when the variable is subject to further parametric analysis. ii.Alphabetic Coding: A mere tabulation or frequency count or graphical representation of the variable may be given in an alphabetic coding. iii.Zero Coding: A coding of zero has to be assigned carefully to a variable. In many instances, when manual analysis is done, a code of 0 would imply a no response from the respondents. Hence, if a value of 0 is to be given to specific responses in the data sheet, it should not lead to the same interpretation of non response Ans.3 b. Data Editing at the Time of Recording of Data Document editing and testing of the data at the time of data recording is done considering the following questions in mind. Do the filters agree or are the data inconsistent? Have missing value been set to values, which are the same for all research questions? Have variable descriptions been specified? Have labels for variable names and value labels been defined and written? All editing and cleaning steps are documented, so that, the redefinition of variables or later analytical modification requirements could be easily incorporated into the data sets. Q4. a. What are the fundamental of frequency Distribution? b. What are the types and general rules for graphical representation of data?24 | P a g e

Ans.4 a. Frequency Distribution and Class Intervals Frequency Distribution : Variables that are classified according to magnitude or size are often arranged in the form of a frequency table. In constructing this table, it is necessary to determine the number of class intervals to be used and the size of the class intervals. A distinction is usually made between continuous and discrete variables. A continuous variable has an unlimited number of possible values between the lowest and highest with no gaps or breaks. Examples of continuous variable are age, weight, temperature etc. A discrete variable can have a series of specified values with no possibility of values between these points. Each value of a discrete variable is distinct and separate Class Intervals: Ordinarily, the number of class intervals may not be less than 5 not more than 15, depending on the nature of the data and the number of cases being studied. After noting the highest and lower values and the feature of the data, the number of intervals can be easily determined. For many types of data, it is desirable to have class intervals of uniform size. The intervals should neither be too small nor too large. Whenever possible, the intervals should represent common and convenient numerical divisions such as 5 or 10, rather than odd division such as 3 to 7. Class intervals must be clearly designated in a frequency table in such a way as to obviate any possibility of misinterpretation of confusion. Every class interval has a mid point. Once class intervals are determined, it is routine work to count the number of cases that fall in each interval. One-Way Tables: One-way frequency tables present the distribution of cases on only a single dimension or variable.. One way tables are rarely used since the result of frequency distributions can be described in simple sentences. For instance, the gender distribution of a sample study may be described as The sample data represents 58% by males and 42% of the sample are females. Two-Way Table: Distributions in terms of two or more variables and the relationship between the two variables are show in two-way table. The categories of one variable are presented one below another, on the left margin of the table those of another variable at the upper part of the table, one by the side of another. The cells represent particular combination of both variables. To compare the25 | P a g e

distributions of cases, raw numbers are converted into percentages based on the number of cases in each category Ans.4.b. Types of Graphs and General Rules The most commonly used graphic forms may be grouped into the following categories: a) Line Graphs or Charts b) Bar Charts c) Segmental presentations. d) Scatter plots e) Bubble charts f) Stock plots g) Pictographs h) Chesnokov Faces The general rules to be followed in graphic representations are: 1. The chart should have a title placed directly above the chart. 2. The title should be clear, concise and simple and should describe the nature of the data presented. 3. Numerical data upon which the chart is based should be presented in an accompanying table. 4. The horizontal line measures time or independent variable and the vertical line the measured variable. 5. Measurements proceed from left to right on the horizontal line and from bottom to top on the vertical. 6. Each curve or bar on the chart should be labelled. 7. If there are more than one curves or bar, they should be clearly differentiated from one another by distinct patterns or colours. 8. The zero point should always be represented and the scale intervals should be equal. 9. Graphic forms should be used sparingly. Too many forms detract rather than illuminating the presentation.26 | P a g e

10. Graphic forms should follow and not precede the related textual discussion. Q5. Strictly speaking, would case studies be considered as scientific research? Why or why not? Ans.5. Meaning and Definition of Research Research simply means a search for facts answers to questions and solutions to problems. It is a purposive investigation. It is an organized inquiry. It seeks to find explanations to unexplained phenomenon to clarify the doubtful facts and to correct the misconceived facts. Research and Scientific Method Research is a scientific endeavour. It involves scientific method. The scientific method is a systematic step-by-step procedure following the logical processes of reasoning. Scientific method is a means for gaining knowledge of the universe. It does not belong to any particular body of knowledge; it is universal. It does not refer to a field of specific subject of matter, but rather to a procedure or mode of investigation. The scientific method is based on certain articles of faith. These are: Reliance on Empirical Evidence: Truth is established on the basis of evidence. Conclusion is admitted, only when it is based on evidence. The answer to a question is not decided by intuition or imagination. Relevant data are collected through observation or experimentation. The validity and the reliability of data are checked carefully and the data are analyzed thoroughly, using appropriate methods of analysis.

Use of Relevant Concepts: We experience a vast number of facts through our sense. Facts are things which actually exist. In order to deal with them, we use concepts with specific meanings. They are symbols representing the meaning that we hold. We use them in our thinking and communication. Otherwise, clarity and correct understanding cannot be achieved. Commitment of Objectivity: Objectivity is the hallmark of the scientific method. It means forming judgement upon facts unbiased by personal

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impressions. The conclusion should not vary from person to person. It should be the same for all persons.

Ethical Neutrality: Science does not pass normal judgment on facts. It does not say that they are good or bad. According to Schrdinger Science never imposes anything, science states. Science aims at nothing but making true and adequate statements about its object. Generalization: In formulating a generalization, we should avoid the danger of committing the particularistic fallacy, which arises through an inclination to generalize on insufficient or incomplete and unrelated data. This can be avoided by the accumulation of a large body of data and by the employment of comparisons and control groups. Verifiability: The conclusions arrived at by a scientist should be verifiable. He must make known to others how he arrives at his conclusions. He should thus expose his own methods and conclusions to critical scrutiny. When his conclusion is tested by others under the same conditions, then it is accepted as correct. Logical reasoning process: The scientific method involves the logical process of reasoning. This reasoning process is used for drawing inference from the finding of a study or for arriving at conclusion.

Q6. a. Analyze the case study and descriptive approach to research. b. Distinguish between research methods & research Methodology. Ans.6 a. Case Study and descriptive approach to research: Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, Descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity. The description is used for frequencies, averages and other statistical calculations. Often the best approach, prior to writing descriptive research, is to conduct a survey investigation.28 | P a g e

Qualitative research often has the aim of description and researchers may followup with examinations of why the observations exist and what the implications of the findings are. In short descriptive research deals with everything that can be counted and studied. But there are always restrictions to that. Your research must have an impact to the lives of the people around you e.g. finding the most frequent disease that affects the children of a town. The reader of the research will know what to do to prevent that disease thus; more people will live a healthy life. Descriptive research does not fit neatly into the definition of either quantitative or qualitative research methodologies, but instead it can utilize elements of both, often within the same study. The term descriptive research refers to the type of research question, design, and data analysis that will be applied to a given topic. Descriptive statistics tell what is, while inferential statistics try to determine cause and effect. A case study is a research method common in social science. It is based on an in-depth investigation of a single individual, group, or event. Case studies may be descriptive or explanatory. The latter type is used to explore causation in order to find underlying principles. They may be prospective, in which criteria are established and cases fitting the criteria are included as they become available, or retrospective, in which criteria are established for selecting cases from historical records for inclusion in the study. Rather than using samples and following a rigid protocol (strict set of rules) to examine limited number of variables, case study methods involve an in-depth, longitudinal (over a long period of time) examination of a single instance or event: a case. They provide a systematic way of looking at events, collecting data, analyzing information, and reporting the results. As a result the researcher may gain a sharpened understanding of why the instance happened as it did, and what might become important to look at more extensively in future research. Case studies lend themselves to both generating and testing hypotheses. Another suggestion is that case study should be defined as a research strategy, an empirical inquiry that investigates a phenomenon within its real-life context. Case study research means single and multiple case studies, can include quantitative evidence, relies on multiple sources of evidence and benefits from the prior development of theoretical propositions. Case studies should not be confused with qualitative research and they can be based on any mix of quantitative and qualitative evidence. Single-subject research provides the statistical framework for making inferences from quantitative case-study data Case Study Case study is a method of exploring and analyzing the life of a social unit or entity, be it a person, a family, an institution or a community. The aim of case study29 | P a g e

method is to locate or identify the factors that account for the behavior patterns of a given unit, and its relationship with the environment. The case data are always gathered with a view to attracting the natural history of the social unit, and its relationship with the social factors and forces operative and involved in this surrounding milieu. In short, the social researcher tries, by means of the case study method, to understand the complex of factors that are working within a social unit as an integrated totality. Looked at from another angle, the case study serves the purpose similar to the clue-providing function of expert opinion. It is most appropriate when one is trying to find clues and ideas for further research. The major credit for introducing case study method into social investigation goes to Frederick Leplay. Herbert Spencer was the first social philosopher who used case study in comparative studies of different cultures. William Healey used case study in his study of juvenile delinquency. Anthropologists and ethnologists have liberally utilized cast study in the systematic description of primitive cultures. Historians have used this method for portraying some historical character or particular historical period and describing the developments within a national community. Ans.6 b. Research Methods and Research Methodology are two terms that are often confused as one and the same. Strictly speaking they are not so and they show differences between them. One of the primary differences between them is that research methods are the methods by which you conduct research into a subject or a topic. On the other hand research methodology explains the methods by which you may proceed with your research. Research methods involve conduct of experiments, tests, surveys and the like. On the other hand research methodology involves the learning of the various techniques that can be used in the conduct of research and in the conduct of tests, experiments, surveys and critical studies. This is the technical difference between the two terms, namely, research methods and research methodology. In short it can be said that research methods aim at finding solutions to research problems. On the other hand research methodology aims at the employment of the correct procedures to find out solutions. It is thus interesting to note that research methodology paves the way for research methods to be conducted properly. Research methodology is the beginning whereas research methods are the end of any scientific or non-scientific research.30 | P a g e

Let us take for example a subject or a topic, namely, employment of figures of speech in English literature. In this topic if we are to conduct research, then the research methods that are involved are study of various works of the different poets and the understanding of the employment of figures of speech in their works. On the other hand research methodology pertaining to the topic mentioned above involves the study about the tools of research, collation of various manuscripts related to the topic, techniques involved in the critical edition of these manuscripts and the like. If the subject into which you conduct a research is a scientific subject or topic then the research methods include experiments, tests, study of various other results of different experiments performed earlier in relation to the topic or the subject and the like. On the other hand research methodology pertaining to the scientific topic involves the techniques regarding how to go about conducting the research, the tools of research, advanced techniques that can be used in the conduct of the experiments and the like. Any student or research candidate is supposed to be good at both research methods and research methodology if he or she is to succeed in his or her attempt at conducting research into a subject.

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MB 0051 Legal Aspects of Business(Book ID: B1207)

Assignment Set- 1

Q.1. Distinguish between fraud and misrepresentation? Ans.1 - MEANING OF FRAUD

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Fraud means and includes any of the following acts committed by a party to a contract with an intent to deceive the other party thereto or to induce him to enter into a contract: (i) The suggestion as a fact of that which is not true by one who does not believe it to be true; (ii) Active concealment of a fact by one having knowledge or belief of the fact; (iii) Promise made without any intention of performing it; (iv) any other act fitted to deceive; (iv) Any such act or omission as the law specifically declares to be fraudulent. MEANING OF MISREPRESENTATION Misrepresentation is also known as simple misrepresentation whereas fraud is known as fraudulent misrepresentation. Like fraud, misrepresentation is an incorrect or false statement but the falsity or inaccuracy is not due to any desire to deceive or defraud the other party. Such a statement is made innocently. The party making it believes it to be true. In this way, fraud is different from misrepresentation. Fraud is a crime punishable by the law because it is an intentional wrong committed by the party. In misrepresentation there are no such consequences, generally speaking. If a fraud is to proven, then each of the following parameters need to be proven in a court of law: 1. The physical proof presented by the defendant 2. The proof thus presented is incorrect 3. The defendant purposely made false representations (was aware of the falsehood) 4. The false proofs were made with the intention of duping the plaintiff 5. The defendant succeeded in duping the plaintiff 6. The plaintiff suffered loses due to the fraud If you are a plaintiff involved in committing a misrepresentation then you must prove the following parameters:33 | P a g e

1. Validity of the evidence presented by the plaintiff 2. The claims were with regard to some legal agreement between the defending and the pleading party 3. False representation of facts at the time of entering into the agreement 4. The plaintiff was induced into entering the agreement by the defendant 5. The agreement resulted in loss for the plaintiff 6. This loss was a gain for the defendant Although it may not be possible for the plaintiff to prove the defendant as a fraudster, it is still possible for the former to validate his situation as that of a misrepresentation. DIFFERENCE BETWEEN FRAUD AND MISREPRESENTATION:The main difference in fraud and misrepresentation are, 1) In misrepresentation the person making the false statement believes it to be true. In fraud the false statement is person who knows that it is false or he does not care to know whether it is true or false. 2) There is no intention to deceive the other party when there is misrepresentation of fact. The very purpose of the fraud is to deceive the other party to the contract. 3) Misrepresentation renders the contract voidable at the option of the party whose consent was obtained by misrepresentation. In the case of fraud the contract is voidable It also gives rise to an independent action in tort for damages. 4) Misrepresentation is not an offence under Indian penal code and hence not punishable. Fraud, in certain cases is a punishable offence under Indian penal code. 5) Generally, silence is not fraud except where there is a duty to speak or the relations between parties is fiduciary. Under no circumstances can silence be considered as misrepresentation. 6) The party complaining of misrepresentation cant avoid the contract if he had the means to discover the truth with ordinary diligence. But in the case of fraud, the party making a false statement cannot say that the other party had the means to discover the truth with ordinary diligence.

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Q.2.What are the remedies for breach of contract? Ans.2 - REMEDIES FOR BREACH OF CONTRACT Remedies for breach of contract being a fountainhead of a correlative set of rights and obligations for the parties, would be of no value, if there were no remedies to enforce the rights arising there under. The party committing breach of contract is called the guilt party and the other party is called the injured or aggrieved party. In case of breach of contract, the aggrieved party would have one or more, but not all, of the following remedies against the guilty party. The remedies are: 1. Suit for rescission 2. Suit for damages 3. Suit for quantum meruit 4. Suit for specific performance 5. Suit for injunction1.

Suit for rescission :

The breach of contract no doubt discharges the contract, but the aggrieved party may sometimes need to approach the court to grant him a formal rescission, i.e. cancellation, of the contract. This will enable him to be free from his own obligations under the contract. 2. Suit for damages : The word damages means monetary compensation for loss suffered. Whenever a breach of contract takes place, the remedy of damages is the one that comes to mind immediately as the consequence of breach. A breach of contract may put the aggrieved party to some disadvantage or inconvenience or may cause a loss to him. The court would desire the guilty part to accept responsibility for any such loss of the aggrieved party and compensate him adequately. The quantum of damages is determined by the magnitude of loss caused by breach. 3. Suit for quantum meruit : The term quantum meruit means as much as earned. It implies a payment35 | P a g e

deserved by a person for the reason of actual work done. When a party has done some work under a contract, and the other party repudiates the contract or somehow the full performance of the contract becomes impossible, then the party who has done the work can claim remuneration for the work under a suit for quantum meruit. Likewise, where one party has expressly or impliedly requested another to render him a service without specifying any remuneration, but the circumstances of the request imply that the service is to be paid for, there is implied a promise to pay quantum meruit. Even in the case of where the person who has done the work is the one who is guilty of breach of contract, he too is entitled to be paid quantum meruit. But there is an exception such a contract must have involved work that was indivisible and it must not have been a contract for lumpsum remuneration. 4. Suit for specific performance: In certain cases of breach of a contract, damages may not be an adequate remedy. Then the Court may direct the party in breach to carry out his promise according to he terms of the contract. This is a direction by the Court for specific performance of the contract at the suit of the party not in breach. But in general, Courts do not wish to compel a party to do that which he has already refused to do. Chapter 2 of the Specific Relief Act,1963 lays down detailed rules on the specific performance of Contracts. Cases where specific performance may be ordered: a) Where there exists no standard for ascertaining the actual damage b) caused to the aggrieved party by the non- performance c) Where monetary compensation will not be adequate relief. Example d) contract for sale of a rare antique e) Where plaintiffs property is held by the defendant in the capacity of his agent or trustee f) Where the act to be done is in performance of trust Cases where specific performance will not be ordered: 1) Where monetary compensation is adequate relief. 2) Where contract is made by the agent or trustee in violation of his powers. 3) Where the contract is of a personal nature, such as a contract to36 | P a g e

4) 5) 6) 7)

marry or a contract of service. Where the court cannot supervise the performance of promise as it involves performance of a continuous duty. Where the contract is in its nature revocable. Where the contract is made by a company in excess of its powers as laid. down in its Memorandum of Association.

5. Suit for injunction : Injunction is a court order or decree to a person asking him to refrain from doing a contemplated act or from continuing an ongoing act. Such an order of injunction becomes a remedy for the aggrieved party when the court orders the guilty party to refrain from doing precisely that which is causing the breach of contract. In a way, injunction is a mode of securing the specific performance of the negative terms of a contract. But for the performance of the positive terms of the contract, the aggrieved party may seek other remedies like damages. BUYERS REMEDIES AGAINST SELLER The buyer has the following rights against the seller for breach of contract: (i) damages for non-delivery; (ii) right of recovery of the price; (iii) specific performance ; (iv) suit for breach of condition; (v) suit for breach of warranty ; (vi) anticipatory breach; (vii) recovery of interest .) Q.3. Distinguish between indemnity and guarantee. Ans.3 -INDEMNITY For a contract of indemnity provides that a contract of indemnity is a contract whereby one party promises to save the other from loss caused to him (the promisee) by the conduct of the promisor himself or by the conduct of any other person. A contract of insurance is a glaring example of such type of contracts. A contract of indemnity may arise either by (i) an express promise or (ii) operation of law, e.g. the duty of a principal to indemnify an agent from consequences of all lawful acts done by him as an agent. The contract of indemnity, like any other37 | P a g e

contract, must have all the essentials of a valid contract. These are two parties in a contraction of indemnifier and indemnified. The indemnifier promises to make good the loss of the indemnified (i.e. the promisee). GUARANTEE In law and common usage: A promise to answer for the payment of some debt, or the performance of some duty, in case of the failure of another person, who is, in the first instance, liable to such payment or performance, an engagement which secure or insures another against a contingency, a warranty, a security. Same as guaranty. Difference between indemnity and guarantee:There are distinguishing differences between Indemnity and Guarantee in the Indian Contract Act. Section 124 of the Indian Contract Act, 1872 defines the "Contract of Indemnity". It is a contract by which one party promises to save the other from loss caused to him by the contract of the promissory himself, or by the conduct of any other person. 'A' contracts to indemnify B against the consequences of any proceedings which C may take against B in respect of a certain sum of 20000 rupees. This is a contract of indemnity. A contract of guarantee is defined in Section 126 of the Act. It is a contract to perform the promise, or discharge the liability, of a third person in case of his default. The person who gives the guarantee is called the surety; the person in respect of whose default the guarantee is given is called the principal debtor and the person to whom the guarantee is given is called the creditor. In contract of indemnity there are only two parties viz the indemnifier or provisory and the indemnity holder or promise. In contract of guarantee there are three parties viz the creditor, principal debtor and surety. In indemnity, there is primary and independent liability. In guarantee the surety has collateral liability. There is no existing debt generally in the case of contract of indemnity where there is existing debt in the case of guarantee.38 | P a g e

There are two contracts in a contract of indemnity where there are three contracts in the case of guarantee. In Indemnity the promissory is discharged by payment. In guarantee the surety is discharged by payment made by principal debtor. Indemnifier may have some interest in the transaction where the surety will not have any connection with the transaction.

Indemnity

Guarantee

Liability of the indemnifier is primary

The liability of the surety is secondary. The surety is liable only if the principal debtor makes a default. The primary liability being that of the principal debtor. There is an existing debt or duty, the performance of which is guarantee by the surety.

The possibility of any loss happening is the only contingency against which the indemnifier undertakes to indemnify.

Q.4. What is the distinction between cheque and bill of exchange? Ans.4 - Cheques and bills of exchange are negotiable instruments and have been used by many people worldwide for many decades. Understanding these two instruments would be a fundamental task for any person who wishes to undertake banking as a career or even a past time activity. WHAT IS A NEGOTIABLE INSTRUMENT?39 | P a g e

The term negotiable instrument literally means a written document transferable by delivery. It can be a promissory note, bill of exchange or check payable either to order or to a bearer. BILL OF EXCHANGE A bill of exchange is defined by Sec.5 as an instrument in writing, containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to or to the order of, a certain person, or to the bearer of the instrument. CHEQUES A cheque is the usual method of withdrawing money from a current account with a banker. Savings bank accounts are also permitted to be operated by cheques provided certain minimum balance is maintained. A cheque, in essence, is an order by the customer of the bank directing his banker to pay on demand, the specified amount, to or to the order of the person named therein or to the bearer. Sec.6 defines a cheque. The Amendment Act 2002 has substituted new section for Sec.6. It provides that a cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic from.

Cheque

Bill of Exchange

It has three parties - the drawer, the drawee, and payee. It does not require acceptance by the drawee.

It has three parties - the drawer, the drawee, and payee. It must be accepted by the drawee can be made liable to pay the bill before he

No stamp duty is payable on checks

Stamp duty has to be paid on bill of exchange.40 | P a g e

Q.5. Distinguish between companies limited by shares and companies limited by guarantee. Ans.5 - A company limited by guarantee is normally incorporated for non-profit making functions. The company has no share capital. A company limited by guarantee has members rather than shareholders. The members of the company guarantee/undertake to contribute a predetermined sum to the liabilities of the company which becomes due in the event of the company being wound up. The Memorandum normally includes a non-profit distribution clause and these companies are usually formed by clubs, professional, trade or research associations. The main difference between a company limited by guarantee and a company limited by shares is that the company has no share capital. A Company limited by guarantee is a lesser known type of business entity which is generally formed by non-profit purposes and has members instead of shareholders. There are both some similarities and differences between the two groups. Members and shareholders enjoy limited liability, however in cases where a share based company is liquidated; the latter might be required to pay all amounts of unpaid monies relating to the shares they hold. For example, if an individual shareholder holds 100 shares of Rs.100 each, all of which remains unpaid at the time of dissolution, then they would be required to pay Rs.10000 to the company. Most companies limited by guarantee have a constitution which states that each member is only required to pay Rs.100 should it be dissolved. Assuming that an average shareholder holds more than one share in a company, members in a business limited by guarantee do appear to have less risk attached to their positions. PROFIT MAKING STATUS Perhaps the most fundamental difference between the two types of limited companies is that those with shares generally exist for profit making purposes. Companies limited by guarantee however, are non-profit making organizations and are usually registered to provide a specified service to the public or a particular segment of the population. The memorandum and articles of association of each would also differ as companies limited by shares usually have very general objects clauses which allow them to pursue any legal trade or activity. OBJECTS OF COMPANIES LIMITED BY GUARANTEE41 | P a g e

Companies limited by guarantee however, often have very specific objects and detailed rules pertaining to which areas they can engage in. Charities, which are often of this type, might have restrictions imposed on them by their major donors who wish to ensure that their donations will be spent according to their wishes and not in a manner which they would not approve REMOVING THE WORD LIMITED Companies limited by guarantee can have the word limited removed from their name under section 30 of the Companies Act. COMPANY DIRECTORS, SECRETARY AND DECLARANT Both types of companies are bound by the same requirements to have at least one director, a secretary and a declarant at the time of incorporation and throughout any period of its existence. When forming a company limited by guarantee, members are listed in the same manner in which shareholders would be, even though no allotments are made to them. Q.6.What is the definition of cyber crime. Ans.6 - Computer crime, or cyber crime, refers to any crime that involves a computer and a network. The computer may have been used in the commission of a crime, or it may be the target. Net crime refers, more precisely, to criminal exploitation of the Internet. Issues surrounding this type of crime have become high-profile, particularly those surrounding hacking, copyright infringement, child pornography, and child grooming. There are also problems of privacy when confidential information is lost or intercepted, lawfully or otherwise. Cyber crime includes anything from downloading illegal music files to stealing millions of dollars from online bank accounts. Cyber crime also includes non-monetary offences, such as creating and distributing viruses on other computers or posting confidential business information on the Internet. Perhaps the most prominent form of cyber crime is identity theft, in which criminals use the Internet to steal personal information from other users. Two of the most common ways this is done is through phishing and pharming. Both of these methods lure users to fake websites, where they are asked to enter personal information. This includes login information, such as usernames and passwords, phone numbers, addresses, credit card numbers, bank account numbers, and other42 | P a g e

information criminals can use to "steal" another person's identity. For this reason, it is smart to always check the URL or Web address of a site to make sure it is legitimate before entering your personal information. CYBERCRIME Cybercrime is defined as crimes committed on the internet using the computer as either a tool or a targeted victim. It is very difficult to classify crimes in general into distinct groups as many crimes evolve on a daily basis. Even in the real world, crimes like rape, murder or theft need not necessarily be separate. However, all cybercrimes involve both the computer and the person behind it as victims; it just depends on which of the two is the main target. Hence, the computer will be looked at as either a target or tool for simplicitys sake. For example, hacking involves attacking the computers information and other resources. It is important to take note that overlapping occurs in many cases and it is impossible to have a perfect classification system.

Computer as a tool When the individual is the main target of Cybercrime, the computer can be considered as the tool rather than the target. These crimes generally involve less technical expertise as the damage done manifests itself in the real world. Human weaknesses are generally exploited. The damage dealt is largely psychological and intangible, making legal action against the variants more difficult. These are the crimes which have existed for centuries in the offline. Scams, theft, and the likes have existed even before the development in high-tech equipment. The same criminal has simply been given a tool which increases his potential pool of victims and makes him all the harder to trace and apprehend. Computer as a target These crimes are committed by a selected group of criminals. Unlike crimes using he computer as a tool, these crimes requires the technical knowledge of the perpetrators. These crimes are relatively new, having been in existence for only as long as computers have - which explains how unprepared society and the world in general is towards combating these crimes. There are numerous crimes of this nature committed daily on the internet. But it is worth knowing that Africans and indeed Nigerians are yet to develop their technical knowledge to accommodate and perpetrate this kind of crime.43 | P a g e

Cyber crime encompasses any criminal act dealing with computers and networks (called hacking). Additionally, cyber crime also includes traditional crimes conducted through the Internet. For example; hate crimes, telemarketing and Internet fraud, identity theft, and credit card account thefts are considered to be cyber crimes when the illegal activities are committed through the use of a computer and the Internet. Crime committed using a computer and the internet to steal a person's identity or sell contraband or stalk victims or disrupt operations with malevolent programs MODE AND MANNER OF COMMITING CYBER CRIME1)

2)

Unauthorized access to computer systems or networks / HackingThis kind of offence is normally referred as hacking in the generic sense. However the framers of the information technology act 2000 have no where used this term so to avoid any confusion we would not interchangeably use the word hacking for unauthorized access as the latter has wide connotation. Theft of information contained in electronic formThis includes information stored in computer hard disks, removable storage media etc. Theft may be either by appropriating the data physically or by tampering them through the virtual medium.

3) Email bombingThis kind of activity refers to sending large numbers of mail to the victim, which may be an individual or a company or even mail servers there by ultimately resulting into crashing. 4) Data diddlingThis kind of an attack involves altering raw data just before a computer processes it and then changing it back after the processing is completed. The electricity board faced similar problem of data diddling while the department was being computerised. 5) Virus / worm attacksa. Viruses are programs that attach themselves to a computer or a file and then circulate themselves to other files and to other computers on a network. They usually affect the data on a computer, either by altering or deleting it. Worms, unlike viruses do not need the host to attach themselves to. They merely make functional copies of44 | P a g e

themselves and do this repeatedly till they eat up all the available space on a computer's memory. E.g. love bug virus, which affected at least 5 % of the computers of the globe. The world's most famous worm was the Internet worm let loose on the Internet by Robert Morris sometime in 1988. Almost brought development of Internet to a complete halt.

MB 0051 Legal Aspects of BusinessAssignment Set- IIQ1: What are the situations which cannot be referred to arbitration? Ans.1: Arbitration law is a process that involves the assistance of one or more neutral parties known as arbitrators. Arbitrators are charged with hearing evidence from numerous involved parties in a dispute, and their main duty is to issue an award deciding who gets what in order to resolve the situation. In some instances of arbitration law, an arbitrator may also issue an opinion in conjunction with the45 | P a g e

award, which is designed to explain the award and the reasoning that led to it. Arbitration law and mediation law are two different processes and should not be confused. The award and the opinion are not capable of being reviewed by a court, and there is no availability for appeal. The purpose of arbitration law is to serve as a substitution to a trial and a review of the decision by a trial court. Subject matter of arbitration: Any commercial matter including an action in tort if it arises out of or relates to a contract can be referred to arbitration. However, public policy would not permit matrimonial matters, criminal proceedings, insolvency matters anti-competition matters or commercial court matters to be referred to arbitration. Employment contracts also cannot be referred to arbitration but director - company disputes are abatable (as there is no master servant relationship here)5. Generally, matters covered by statutory reliefs through statutory tribunals would be non-abatable. Arbitration is an Alternative Dispute Resolution process whereby a person chosen as an arbitrator settles disputes between parties. Arbitration is similar to a court trial, with several exceptions: The arbitrator makes the decision called an "arbitration award The arbitration does not take place in a courtroom The arbitration award is binding. With rare exceptions, there is no right to appeal Arbitration is not a matter of public record. It is private and confidential There is no court reporter or written transcripts Lawyers generally prepare their cases in an extremely limited manner The rules of evidence are relaxed so that the parties have a broader scope, more expanded opportunity to tell their stories to present their cases With very few exceptions, it is much less expensive than legal litigation An arbitration time frame is substantially less than that of litigation and going to trial No jury. The Arbitrator(s) maintain neutrality and conflicts of interests Generally, all paperwork and evidence presented are destroyed after the Arbitration The arbitration and arbitration award does not have to adhere to Judicial Case precedent nor formality of traditional court proceedings.46 | P a g e

In India, Arbitration is one of the most effective and trusted proceedings in regard to private dispute settlement are guided by the Arbitration & Conciliation Act, 1996. Kind of matters cannot be referred for arbitration: As per general practice, matters involving moral questions or questions of public law cannot be resolved by arbitration. For instance, the following matters are not referred to arbitration: Matrimonial matters Guardianship of a minor or any other person under disability Testamentary matters Insolvency, proceedings Criminal proceedings Questions relating to charity or charitable trusts Matters relating to anti-trust or competition law Dissolution or winding up of a company Indian Arbitration Act follows the guideline of: The Geneva Convention on the Execution of Foreign Arbitral Awards, 1927 The New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards The Geneva Protocol on Arbitration Clauses of 1923

Q 2: What is the role of a Conciliator? Ans.2: Conciliation Conciliation is a process in which the parties to a dispute, with the assistance of a neutral third party (the conciliator), identify the disputed issues, develop options, consider alternatives and endeavour to reach an agreement.47 | P a g e

The conciliator may have an advisory role on the content of the dispute or the outcome of its resolution, but not a determinative role. The conciliator may advise on or determine the process of conciliation whereby resolution is attempted, and may make suggestions for terms of settlement, give expert advice on likely settlement terms, and may actively encourage the participants to reach an agreement. In order to understand what Parliament meant by Conciliation, we have necessarily to refer to the functions of a Conciliator as visualized by Part III of the 1996 Act. It is true, section 62 of the said Act deals with reference to Conciliation by agreement of parties but sec. 89 permits the Court to refer a dispute for conciliation even where parties do not consent, provided the Court thinks that the case is one fit for conciliation. This makes no difference as to the meaning of conciliation under sec. 89 because; it says that once a reference is made to a conciliator, the 1996 Act would apply. Thus the meaning of conciliation as can be gathered from the 1996 Act has to be read into sec. 89 of the Code of Civil Procedure. The 1996 Act is, it may be noted, based on the UNCITRAL Rules for conciliation. Role of conciliator: The conciliator shall assist the parties in an independent and impartial manner in their attempt to reach an amicable settlement of their dispute. The conciliator shall be guided by principles of objectivity, fairness and justice, giving consideration to, among other things, the rights and obligations of the parties, the usages of the trade concerned and the circumstances surrounding the dispute, including any previous business practices between the parties. The conciliator may conduct the conciliation proceedings in such a manner as he considers appropriate, taking into account the circumstances of the case, the wishes the parties may express, including any request by a party that the conciliator hear oral statements, and the need for a speedy settlement of the dispute. The conciliator may, at any stage of the conciliation proceedings, make proposals for a settlement of the dispute. Such proposals need not be in writing and need not be accompanied by a statement of the masons therefore. Conciliators do not:48 | P a g e

Make decisions for disputing parties. Make judgments about who is right, who is wrong or what the outcome of the dispute should be. Tell people what to do Make rulings Force parties to participate in the conciliation process.

Q 3: What are the unfair trade practices under the MRTP Act? Ans.3: THE MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT, 1969 - OBJECTIVES AND POLICY: The Monopolies and Restrictive Trade Practices Commission has been constituted under Section 5(1) of the MRTP Act, 1969. The Commission is empowered to enquire into Monopolistic or Restrictive Trade Practices upon a reference from the Central Government or upon its own knowledge or information. The MRTP Act also provides for appointment of a Director General of Investigation and Registration for making investigations for the purpose of enquiries by the MRTP Commission and for maintenance of register of agreements relating to restrictive trade practices. The MRTP Commission receives complaints both from registered consumer and trade associations and also from individuals. Complaints regarding Restrictive Trade Practices or Unfair Trade Practices from an association are required to be referred to the Director General of Investigation and Registration for conducting preliminary investigation. The Commission can also order a preliminary investigation by the Director General of Investigation and Registration when a reference on a restrictive trade practice is received from the Central/State Government, or when Commission's own knowledge warrants a preliminary investigation. Enquiries are instituted by the Commission after the Director General of Investigation and Registration completes preliminary investigation and submits an application to the Commission for an enquiry.

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An unfair trade practice means a trade practice, which, for the purpose of promoting any sale, use or supply of any goods or services, adopts unfair method, or unfair or deceptive practice. 1. False Representation: The practice of making any oral or written statement or representation which: Falsely suggests that the goods are of a particular standard quality, quantity, grade, composition, style or model; Falsely suggests that the services are of a particular standard, quantity or grade; Falsely suggests any re-built, second-hand renovated, reconditioned or old goods as new goods; Represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which they do not have; Represents that the seller or the supplier has a sponsorship or approval or affiliation which he does not have; Makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services; Gives any warranty or guarantee of the performance, efficacy or length of life of the goods, that is not based on an adequate or proper test; Makes to the public a representation in the form that purports to be warranty or guarantee of the goods or services, a promise to replace, maintain or repair the goods until it has achieved a specified result, If such representation is materially misleading or there is no reasonable prospect that such warranty, guarantee or promise will be fulfilled Materially misleads about the prices at which such goods or services are available in the market; or Gives false or misleading facts disparaging the goods, services or trade of another person.1. False Offer Of Bargain Price: Where an advertisement is published in a newspaper or otherwise, whereby goods or services are offered at a bargain price when in fact there is no intention that the

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same may be offered at that price, for a reasonable period or reasonable quantity, it shall amount to an unfair trade practice. The bargain price, for this purpose means: the price stated in the advertisement in such manner as suggests that it is lesser than the ordinary price, or The price which any person coming across the advertisement would believe to be better than the price at which such goods are ordinarily sold. Free Gifts Offer And Prize Scheme: The unfair trade practices under this category are:1.

Offering any gifts, prizes or other items along with the goods when the real intention is different, or Creating impression that something is being offered free along with the goods, when in fact the price is wholly or partly covered by the price of the article sold, or Offering some prizes to the buyers by the conduct of any contest, lottery or game of chance or skill, with real intention to promote sales or business. Non-Compliance Of Prescribed Standards: Any sale or supply of goods, for use by