PCC_NOV_07 PAPER _ ETHICS_COMMUNICATION

PART-II
Question No. 13 is compulsory. Attempt any two questions of the rest.
Q~13
(a)
What is meant by 'Corporate Governance'? State the major 'characteristics' of good
corporate governance. (5 marks)

Ans : Refer Q- 9 of Chapter 2

(b)
Finance and accounting professional working as an employee in an organisation have to face various threats which make it difficult for them to comply with fundamental principles relating to ethics. Explain the safeguards in the work environment which may be created by a business enterprise to overcome such threats. (5 marks)

Ans : Refer Q-11, Point No. B on page no 55 of Chapter no 6

Q~14
Explain the meaning of the terms 'ethics' and 'business ethics' and also state the requirements of 'business ethics' (5 marks)

Ans : Refer Q-1 & 2, Chapter no 1

Q~15
Answer any two out of four. You are required to state whether the statement is correct or
incorrect with brief reasons:
(a) Company management has responsibility only towards its shareholders.-No
(b) Window-dressing of financial statements will not be useful in the long run.-Yes
(c) Ethics and morals are synonymous.-No
(d) Competition Act, 2002 protects the interest of consumers.-Yes (5 marks)

Q~16
What is meant by 'Environmental ethics'? How does it's non-adoption leads to 3 Ps viz., Polluter, Pay and Principles? Explain. (5 marks)

Ans : Refer Q-12, Chapter no 4

PART-III
Question No. 17 is compulsory and attempt any two questions of the rest

Q~17
(a)
What is meant by 'Critical thinking? How shall you develop critical thinking? (5 marks)

Ans : Refer Q-9 & 10, Chapter no 8

(b)
J desires to gift out her flat to Mumbai in City Cooperative Society registered under the Maharashtra Cooperative Societies Act, 1960, to her brother A. Stating the legal requirements to be complied with, draft a Gift Deed. Take your own data regarding date, flat no., floor area etc. (5 marks)

Q~18
Third Annual General Meeting of ABC Limited was held on 28th September, 2007. Several business was transacted at the meeting including the adoption of annual accounts for the year ended 31st March, 2007. The meeting was attended by 30 members in person and 5 members in proxy. Draft the minutes of the Annual General meeting indicating how shall the adoption of accounts, being one of the business transacted at the meeting, be recorded. (5 marks)

Q~19
What do you understand by `Group conflicts'? How shall these be managed effectively? Explain. (5 marks)

Ans : Refer Q-10 & 11, Chapter no 9

Q~20
You have been assigned the job of composing business messages. What check-list would you prepare for organizing the message?

Ans : While composing business messages i would like to check following things:

1. The background and educational level of receiver
2. The understanding level of receiver
3. The urgency or importance involved with message
4. The level of secrecy to be maintained with message
5. The length, fact & figure involves in message
6. Selection of channel
7. The amount of noise or barrier present in the channel or path of communication.
8. Cost & time involved in transmission of message
9. Custom and culture of organisation and receiver (audience)

What is innominate Terms ?

Innominate terms - (intermediate terms) Terms of a contract that cannot be classified as conditions or warranties. The parties to a contract may label the terms of the contract as either conditions or warranties and those labels will usually be respected by the courts provided that the result is reasonable. Similarly, certain terms have traditionally been treated as conditions or warranties even though they have not been labelled as such (for example, time clauses in mercantile contracts are to be treated as conditions). Innominate terms are those that will not fit the above categories. The remedy for breach of an innominate term will depend on whether or not the breach is of a fundamental nature, i.e. that the injured party has been deprived of substantially the whole of the benefit of the contract. If the injured party has been so deprived, he will be entitled to treat the contract as repudiated and claim damages. If not, he will be entitled to damages only.

NI Act_Practicle Problems_50

B signs the following endorsements on different negotiable instruments pay­able to bearer. Classify the endorsements with reasons as Blank Endorsement or Full Endorsement or Restrictive Endorsement or Partial Endorsement or Conditional Endorsement. Also, state whether the following Endorsements are valid or invalid.

a. No other words except B's signature.
b. Pay C.
c. Pay C or order.
d. Pay C only.
e. Pay C or order for the account of B.
f. Pay C or order Rs 500 out of Rs.1,000.
g. Pay C or order being the unpaid residue of the bill.
h. Pay C or order on safe receipt of goods.
i. Pay C sans Recourse.
j. Pay C sans Frais.
k. Pay C, notice of dishonour dispensed with.

NI Act_Practicle Problems_49

P, the holder of a bill of exchange, transfers it to Q without consideration. Q also transfers it to R without consideration. R transfers it to X for consideration. X transfers it to Y without consideration. State whether Y can recover the amount of such instrument from X or P.

NI Act_Practicle Problems_48

X obtains Y’s acceptance to bill by fraud. X endorses it to Z who takes it as holder in due course. Z endorses the bill to F who knows of the fraud. Can F recover from X?

NI Act_Practicle Problems_47

H is the holder in due course of a bill of which A is the acceptor. D, the drawer of the bill, is fictitious. Can A escape from his liability to H?

NI Act_Practicle Problems_46

A draws a cheque for Rs. 100 and hands it over to B by way of gift. Is B a holder in due course? Explain the nature of his title, interest and rights to receive the proceeds of the cheque.

One of the requirements of Section 9 of the Negotiable Instruments Act to constitute a holder, as holder in due course is that he must have received the instrument for consideration. There are no exceptions to this condition. Thus B can’t be treated as holder in due course. But he is certainly a holder with good title thereto and hence he will have every right to claim payment upon instrument.