Guru Kripas Guideline Answers for CA IPCC Law, Ethics and Communication May 2011 Exams

Guru Kripas Guideline Answers to May 2011 IPCC Exam Questions LAW, ETHICS AND COMMUNICATION
Question No.1 is Compulsory Answer any 5 Questions from the remaining 6 Questions
Q.No. Questions Reference / Marks Pg.1.59, Q.40 5

1 (a) 1(b) (i) (ii)

What is the Law relating to determination of Compensation, on Breach of Contract, contained in Section 73 of the Indian Contract Act, 1872? State True or False: An Agreement with a Minor may be Ratified on his attaining Majority. [Pg.1.15, Q. 24, Pt. 2] A Cheque marked Not-Negotiable is not transferable. [Pg.2.12, Q.18, Pt. 1] Choose the Correct answer from the following:

False False

1 1

(i)

Which one of the following Statements is not true about Minors position in the Firm: (a) He cannot become a Partner in the Firm. (b) A Minor and a Major can enter into an Agreement of Partnership. (c) He can be admitted to the benefits in the Firm. (d) He can become a Partner on becoming a Major.
(b) 1

(ii) (iii) 1(c) 1(d) 2(a)

Delivery of Goods by one person to another for some specific purpose and time is known as: (a) Mortgage; (b) Pledge; (c) Bailment; (d) Charge An Agency in which the Agent himself has interest in the subject matter of Agency is called Agency (a) By Estoppel; (b) By Holding Out; (c) By Necessity; (d) Coupled with Interest Explain clearly the concept of PerpetualSuccession and CommonSeal. What is the Law and procedure relating to Registration of a Non-Profit Organisation as a Company under the Companies Act, 1956? During the Financial Year 20102011 Mr.Ram was a temporary employee in Ayurved Products Limited and drawing a Salary of ` 6000/ pm. On the basis of charge of violent behavior within the premises of the Company, he was prevented from working in the Company for 60 days pending inquiry. Since there was no adverse conclusion against him, he was reinstated in the service with back salary. He worked for the remaining 10 months in that Financial Year and thereafter resigned from the service. Afterwards, when bonus was paid to other employees, the Company refused to pay bonus to Mr.Ram. Decide, whether Mr.Ram will be entitled to bonus under the provisions of the Payment of Bonus Act, 1965? State the elements which create Discrimination in Employment in the Business Organizations. How is the amount of Gratuity, payable to Employees in a Seasonal as well as other establishments, calculated under the provisions of the Payment of Gratuity Act, 1972? What is the maximum amount of Gratuity payable under the said Act? What are the tips for improving InterPersonal Skills in a Business Organization? Whether Shares at Premium can be issued by a Company? What are the purposes for which the Share Premium Account can be utilized? What are the Fundamental Principles of Ethics applicable to the persons of Finance and Accounting?
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(c) (d) Pg.6.2, Q.2, (Pt 3/5) Pg.6.16, Q.19 Pg.3.7, Q.7 (Same N 02)

1 1 5 5 8

2(b) 3(a)

Pg.16.13, Q.25 (Pt. 2) Pg.5.5, Q.9, (Pt. 1/2) Pg.17.19, Q.6 Pg.10.12, Q.20 Pg.16.26, Q.24

8 8

3(b) 4(a) 4(b)

8 8 4

Guru Kripas Guideline Answers for CA IPCC Law, Ethics and Communication May 2011 Exams Q.No. Questions Reference / Marks Pg.17.8, Q.12 Pg.2.10, Q.14 4 8

4(c) 5(a) 5(b) (i) (ii)

Explain the Merits and Limitations of Oral Communication

Note: Students may write the Merits and Limitations from the table given in Q.12; Pg.17.8

Point out the difference between a Cheque and a Bill of Exchange under the NI Act, 1881. State True of False: The responsibility of the Corporate Management lies towards Shareholders only. [Reasons: Pg.16.4, Q.8] Creation of proper Ethical Environment requires a proper understanding of the reasons which lead to an Unethical Behavior. [Reasons: Some reasons with respect to Unethical

False True

2 2

behaviour in Finance and Accounting are listed in Pg.16.27, Q.26 a proper understanding of the same may lead to creation of a proper ethical environment] Pg.17.1, Q.1 Pg.6.21, Q.25 Pg.16.14, Q.28 Pg.17.26, Q.5 Pg.4.8, Q.12 Pg.7.2, Q.1 (Pt. 4) Pg.9.2, Q.3 Pg.16.27, Q.27 Pg.16.19, Q.6 4 8 4 4 4 4 4 4 4 4 4

5(c) 6(a) 6(b) 6(c) 7(a) 7(b)

Importance of Communication is increasing daybyday in the Business Organizations. State the reasons for this increasing importance. Describe the procedure for converting a Private Company into a Public Company. State in brief the Guidelines for managing Ethics and to prevent the need for Whistle Blowing in the work place. What are the characteristics of Group Personality? Write a short note on the composition and functions of the Central Board of Trustees under the EPF and MP Act, 1952. Which Documents are required to be filed with the ROC at the time of Registration of a Company? (OR) State the conditions where under the issuing of Prospectus is not necessary.

7(c)

State the pressures which are faced by the Finance and Accounting Professionals in an organisation in the compliance of fundamental principles of Ethics. (OR) Write a note on Ecological Ethics.

7(d)

How is Noise a barrier to Effective Communication? Explain the concept of Negotiation. What are its techniques?

(OR)

Pg.17.5, Q.8 (Pt. 1) Pg.17.30, Q.14

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