a) State, with reasons in brief, whether the following statements are true or false:

i) Specific guarantee covers a number of transactions entered into over a period of time.
ii) For expelling a partner from the firm, the consent of all the partners is essential.
iii) Risk always follows ownership.
iv) A crossed bearer cheque can be negotiated by delivery.
v) A private company cannot issue a prospectus.

b) White short notes on any two of the following:

i) Anticipatory breach of contract
ii) Substituted agent
iii) Passing of property in specific goods
iv) Payment in due course.

a) Who can make a valid contract? Discuss the validity of agreements made by a minor.

b) A sells his business to B without disclosing this fact to his customers. After sometime C, and an old customer, send an order for supply of goods to A by name. B, the new owner, supplies the goods to C. Is C bound to accept the goods? Give reasons.

(10 marks)

(5 marks)

a) Explain the doctrine of "caveat emptor" with its exceptions
b) What is a 'partial endorsement'?
c) What is meant by 'share qualification' of a director?

(8 marks)
(2marks)
(2marks)

a) State, with reasons in brief, whether the following statements are true or false. Attempt any five:

i) Authority can be delegated but not the responsibility.
ii) Policy is a means to achieve objectives.
iii) Management is getting things done by any means.
iv) 'Pay and status' are motivating factors, according to Herzberg.
v) A manager is a leader as well as a follower

b) Write short notes on any two of the following:

i) Delegation as a means to decentralisation.
ii) Management by objectives
iii) Benefits of manpower planning
iv) Principles of co-ordination

What do you understand by 'decision-making'? Explain the essential steps in decision-making.

a) Define the term 'Direction' and state various approaches to direction

b) What are the essentials of an 'effective control system?

(8 marks)


(7 marks)