INTERMEDIATE EXAMINATION SET 2

MODEL QUESTION PAPER TERM – JUNE 2025

PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS
Time Allowed: 3 Hours Full Marks: 100
The figures in the margin on the right side indicate full marks.

SECTION – A (Compulsory)
1. Choose the correct option: [15×2 = 30]

i. On which date was the Constitution of India adopted by Constituent Assembly?

a. August 15, 1947
b. January 26, 1950
c. November 26, 1949
d. January 30, 1948

ii. According to Section 128 of the Indian Contract Act, the liability of a surety is:
a. Limited to a specific amount
b. Only for the principal sum of the debt
c. Co-extensive with that of the principal debtor unless otherwise specified in the contract
d. Limited to the interest on the debt

iii. In the case of a breach by the seller, the buyer may recover interest on the price paid, which is:
a. Automatically payable from the date of the contract.
b. Recoverable from the date of payment to the seller.
c. Payable only if agreed upon in the contract.
d. Recoverable only after a court order.

iv. Which of the following indorsements exclude the right of further negotiation?
a. ‘Pay the contents to C only’
b. ‘Pay C for order for the account of B’
c. ‘Pay C for my use’
d. ‘Pay C value in account with the Oriental bank’

v. The dissolution of partnership means:

a. It means the change in the relations of the partners
b. It means the dissolution of partnership between all the partners of a firm
c. It means the reconstitution of the firm.
d. None of the above.

vi. What document must a firm file to apply for conversion into an LLP according to the provisions in the
Second Schedule:
a. A statement in Form No. 17 containing the firm’s details
b. A copy of the partnership deed only

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 INTERMEDIATE EXAMINATION SET 2
MODEL QUESTION PAPER TERM – JUNE 2025
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS
c. A statement in Form No. 19
d. A certificate of incorporation from the Registrar of Companies

vii. ___ is the exact time limit under which a Limited Liability Partnership must file its annual return with
the registrar.
a. 15 days
b. 30 days
c. 45 days
d. 60 days

viii. Which one of the following amounts to safety measure?

a. Artificial humidification;
b. Ventilation;
c. Fencing of factory;
d. First aid appliances.

ix. Nomination is to be made by an employee in Form_____.

a. Form H
b. Form F
c. Form U
d. Form N

x. Section 5AA provides for the appointment of__________by the Central Government to assistant the
Central Board in the performance of its functions.
a. Assistant Directors
b. Inspectors
c. Officers
d. Executive Committee

xi. The term of the members of Medical Benefit Council shall be __________.
a. 4 years.
b. 5 years.
c. 3 years.
d. 2 years.

xii. Section 56 talks about the ______

a. offences by companies.
b. penalties for offences,
c. power of officers
d. composition of offences

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 INTERMEDIATE EXAMINATION SET 2
MODEL QUESTION PAPER TERM – JUNE 2025
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS
xiii. At any general meeting, a resolution put to the vote of the meeting shall be decided on ______.
a. Written vote
b. Show of hands
c. Secret ballot
d. Voice vote

xiv. The appointment of an independent director shall be approved by the:

a. General meeting;
b. Board meeting;
c. Registrar of Companies;
d. Central Government.

xv. The following is the disadvantage of business ethics:

a. Through increasing morale and trust business can increase their market share
b. Publicity due to well and ethical performance
c. Diversity in achievements
d. Acceptance of products of the company by the public

Section – B

(Answer any five questions out of seven questions given. Each question carries 14 Marks) [5 x 14 = 70]

2. (a) “Two or more persons are said to be consent when they agree upon the same thing in the same sense” –
Discuss with reason the consequences of the absent of consent and free consent. [7]

(b) Examine the rules regarding enforcement of contingent contracts. [7]

3. (a) Analyse the legal provision relating to modes of Dissolution of a firm under Sec. 39 of the Indian
Partnership Act, 1932. [7]

(b) Discuss the circumstances when a Bill of Exchange is dishonored and the roll of a notice in this regards.
[7]

4. (a) “Chapter V provides the welfare measures to be taken in a factory”-examine the measures prescribed in
the Factory’s Act 1948 to be provided by the factory to their workmen. [7]

(b) Demonstrate the process of determining the money due from employers for PF, pension scheme, or
insurance scheme. [7]

5. (a) Describe the provisions relating to registration of an Association not for profit under Sec.8 of the
Companies Act 2013. [7]

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 INTERMEDIATE EXAMINATION SET 2
MODEL QUESTION PAPER TERM – JUNE 2025
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS

(b) "Inspect the procedures for the removal of a director to confirm they align with company policies and
legal requirements." [7]

6. (a) How can the provisions of the Audit Committee be applied under Section 177 of the Companies Act,
2013? [7]

(b) What do you infer from the term ‘Key Managerial Personnel’? [7]

7. (a) Explain what an internal code of ethics and its relevance in business. [7]

(b) Interpret the role of management accounting in relation to the values and attitudes of Professional
Accountants. [7]

8. (a) X, Y and Z jointly borrowed ₹50,000 from A. The whole amount was repaid to A by Y. Decide in the
light of the Indian Contract Act, 1872 whether:
(i) Y can recover the contribution from X and Z,
(ii) Legal representatives of X are liable in case of death of X,
(iii) Y can recover the contribution from the assets, in case Z becomes insolvent? [7]

(b) ‘X’ was appointed as Managing Director for life by the Articles of Association of a private company
incorporated on 1st June, 2005. The articles also empowered ‘X’ to appoint a successor. ‘X’ appointed
by will ‘G’ to succeed him after his death. Advice in this connection.
 Can ‘G’ succeed ‘X’ as Managing Director after the death of’ X’?
 Is it possible for the company in general meeting to remove ‘X’ from his office of directorship
during his life time? [7]

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