ANNAMALAI MBA EXAM 2020 QUESTION AND ANSWER

ANNAMALAI MBA EXAM QUESTION AND ANSWER

Q1. Management is said to have universal application. How do you justify the

Universality of Management? Give examples to illustrate your arguments.

Managing is necessary whenever one needs to get things done.

It may be called the practice of consciously and continually shaping organizations.

Every organization has people who are assigned the responsibility of serving the organization to achieve its goals.

Management is a universal phenomenon in the sense that it is a common and essential element in all enterprises. Every group effort requires setting objectives, making plans, handling people, co-coordinating and controlling activities, achieving goals and evaluating performance directed towards organizational goals.

These activities relate to the utilization of 4 types of inputs or resources from the environment—human, monetary, physical, and informational.

Human resources include managerial talent, labor, and so forth. Monetary resources are the financial capital the organization uses to finance both ongoing and long-term operations.

Physical resources include raw materials, office and production facilities, and equipment. Information resources are data and other kinds of information utilized by the organization.

The job of the manager is to combine and coordinate these resources to achieve the organization’s goals.

If we see our society closely, we will found management practices are being used everywhere, our praying place, social parties, transport system, schools and.

The concept of universality of management has several implications.

1.      First, managerial skills are transferable from one person to another.

2.      Secondly, management skills can be transferred from one organization to another.

3.      Thirdly, managerial skills can be important and exported from one country to another.

4.      Fourthly, this principle of universality serves as the basis of a general theory of management -a set of common principles.

Some experts support the universality of management on the group that whatever the situation and whatever the level of management, the management function is common.

Any manager must, one time or the other, perform the same managerial functions.

A set of common principles or a general theory of management underlies all organizations F.W. Taylor said that the fundamental principles of scientific management apply to all human activities from our simplest individual acts to work of our great corporations.

According to Koontz and O’Donnell,” Management fundamentals have universal application in every kind of enterprise and at every level of the enterprise.”

According to Foyal,” Acting in their managerial capacity, president, college deans, bishops, and head of government agencies, all do the same things.”

But, on the other hand, many other experts oppose the universality of management.

According to Peter Drucker “The skills, the competence, the experience of management cannot, as such, be transferred and applied to the organization and running of other institutions. A career in management is, by itself, not preparation for major political office or leadership in the armed force, the church or a university.”

According to C.Mc Millan and R.W. Gonzalez,” Management philosophy is culture-bound and it is not universally applicable. External forces affect management philosophy.”

Similarly, in a study of 3600 managers in fourteen countries, it was found that variations in managerial behavior patterns were due to identifiable cultural differences.

Management is required in all organizations.

The managerial function of planning, organizing, staffing, directing and controlling are found in any enterprise.

According to Koontz and O’ Donell,” as a manager, each must at one time or another, carry out all the duties characteristic of managers. This is the principle of universality of the managerial function.”

The concept of universality implies that management and activities are transferable from one organization to another.

This mainly happens in the case of military people who often join the industry after retirement. There is, of course, an instance where such transfers have not been successful.

At last, no doubt, management is universals because its basic function is acceptable to all and applicable anywhere.

For example, my father makes a plan, my teacher makes a plan, a captain of a sports team makes a plan, a businessman makes a plan, an entrepreneur makes a plan, a professional (doctor, chartered accountant.etc) makes a plan, and even you and I make plans.

All of the above use other managerial functions as planning time to time to achieve their desired goals.

Now, it is clear that the functions and principles of management are universal, but according to the nature, size and another background of organizations, their application will differ according to circumstances.

So, no doubt that management is universal. But the practice of it is different in situations, positions, society.

There has been and still is considerable controversy about the universality of management process and functions. The area of management has a worldwide command and acceptability. Scholars have different views about whether management knowledge is applicable everywhere or not. If are the management knowledge has universal approach then it can be communicated through persons going from one country to another, persons from developing countries going to developed countries and going back after learning management principles or by organising management development programmes in developing countries.

Some scholars opine that management principles and processes have universal application. They feel that managerial principles can be applied in all types of business organisations and in every country. There are different views of management thinkers about universality of management. Authors like Henry Fayol, Taylor, James Lundy, Louis Allen, Dalton F. Mc Farland and Koontz and O’ Donnell are of the view that management has universal application. But there are others who do not subscribe to the view of universality of management. They include Joan Woodward, Ernest Dale, Peter Drucker, W. Oberg.

The fundamental functions of management like planning, organising, staffing, leading and controlling are basic and are performed by every manager in all organisations. The management process is similar among managers. In the words of Fayol, “There is a universal science of management applicable alike to commerce, industry, politics, religion, war or philanthropy.

It is argued that different countries have different cultures and varying levels of economic development. Culture consists of attitudes, beliefs and values of a society. There are differences in personality traits and educational, social, political and economic standards are also different. Since management is people oriented there is always a possibility that application of management principles will be affected by these factors. When the ground rules under which a manager operates are different in different cultures then common strategies of management will not be possible.

The objectives of an enterprise determine the type of management required. Different enterprises have different objectives so these managerial needs are linked to these objectives. According to Peter Drucker, the skills, the competence, and the experience of management cannot as such be transferred and applied to every type of institution. Only analytical and administrative types of skills and abilities can be transferred. Thus, management principles cannot be applied universally.

There are differences in philosophies of different organisations. Philosophies refer to those general concepts and integrated attitudes that are basic to an enterprise. Managers operate with a specific philosophy in a particular enterprise. This philosophy can be different even in same type of enterprises. These philosophies require different kinds of managerial techniques. Earnest Dale says, “No individual could be a good manager in religious, academic, military and business institutions of both communist and democratic countries, because the philosophies that underlie each, are very different and one person could not encompass so much.”

Since philosophies exert different influences on managerial working there cannot be any principles which can have universal application. Common laws, principles and concepts tend to be true in all managerial problems. Management principles can be applied in all types of organised human endeavours. In the words of F.W. Taylor, “The fundamental principles of scientific management are applicable to all kinds of human activities from our simplest individual acts to the work of our great corporations.”

Some people do not distinguish between management fundamentals and techniques. They oppose universality of management on the basis of techniques of management. Management techniques are the tools for performing managerial functions. Management techniques can differ from person to person, organisation to organisation or from country to country but basic principles and theories remain the same.

Management skills and principles are transferable from one person to another, from one organisation to another, from one country to another. When skills and principles can be transferred then it has universal applicability. Managers can be developed through education and training. This knowledge can be acquired by any one and anywhere so it is not related to particular caste, creed or country. All this is possible only if management is universal in nature.

Some experts feel that management principles and knowledge do not have universal application due to cross- cultural differences. They are also of the view that same management skills cannot be applied in all situations and fields and the skills are not transferable.

Peter Drucker is of the view that, “the skill, the competence, the experience of management cannot, as such be transferred and applied to the organisation and running of other institutions. A career in management is, by itself, not a preparation for major political office or for leadership in armed forces, the church or a university.” There is a difference in objectives of the organisations. Business organisations exist to maximise profitability whereas social organisations like clubs, educational institutions have social service as the objective. Different organisations with separate objectives will have to be managed differently.

There is a feeling that same person may not prove to be a good administrator in different organisations. The management of a business enterprise, a church, a hospital, a military academy may riot be the same because of their different philosophies. Even in the same category, the philosophy of enterprises may be different. One enterprise may aim to go for quick profits while the other may aim at long-term returns. The philosophies will exert different influences on productivity, organisation structure, pattern of communication, delegation of authority etc.

Some authors are of the opinion that cultural backgrounds of managers do have an influence on their working. Gonzale and Mc Millan concluded in their study that ‘management philosophy is culture- bound.’ They were also of the opinion that external environmental forces affect the management philosophy. W. Oberg also came to the conclusion that the applicability of management principles is limited to a particular culture.

The managers from traditional, religious and cultural bias societies will not have that scientific temperament which the managers from liberal social background may have. The differences in cultural backgrounds also limit the universality of management.

A Critical analysis of the above arguments brings out that every type of organization require management. Managerial functions like planning, organizing, staffing and controlling are to be performed in all types of organizations. The objectives of enterprises may differ but the type of situations to be dealt with by them are the same? Managers shift from one enterprise to another because they have general managerial skills and principles of management work are similar. It is obvious that principles, concepts and skills are universal, only practices change. It can be concluded that basic principles and functions of management are universal in nature. These can be applied in every type of organisation and in every country.

BUSINESS ENVIRONMENT

Answer the following question.

Q1. Throw light on decision making and the impact of microenvironment.

(10 marks)

Microeconomics involves factors of resources availability and usage that impact individuals and businesses. As a company operator, understanding the core microeconomic factors affecting your business helps in planning and preparation, as well as long-term business strategy development. Six microeconomic business factors that affect almost any business are customers, employees, competitors, media, shareholders and suppliers.

Customers have the most direct microeconomic impact on a business. The simple fact is that we can't successfully operate a for-profit company without attracting targeted customers. Knowing our ideal customer types and developing and presenting effective marketing campaigns are integral to building a customer base and generating revenue streams.

Our workers produce, sell or service the goods and service that drive your business. The availability of qualified, motivated employees for your business type is vital to economic success. If we operate a highly technical business, for instance, you might have to pay more in salary to attract a limited number of available, specialized workers.

Sourcing goods used in production or resale and distributing your inventory to customers are important as well. Manufacturers rely on materials suppliers and resale companies rely on manufacturers or wholesalers to transport goods. To operate profitably, we need to get good value on products and supplies and, in turn, offer good value to your customers with accessible solutions.

The level of competition also impacts your economic livelihood. In theory, more competitors means our share of dollars customers spend diminishes. However, a large number of competitors in an industry usually signifies lots of demand for the products or services provided. If an industry lacks competition, you might not find enough demand to succeed in the long run.

Shareholders and investors may help fund your company at start-up or as we look to grow. Without funds to build and expand, you likely can't operate a business. We could look to creditors, but you have to repay loans with interest. By taking on investors, you share the risks of operating and often gain support and expertise. We do give up some control, though. Our local community and media also affect your ongoing business image. Communities often support companies that provide jobs, pay taxes and operate with social and environmental responsibility. If we don't do these things, you may run into negative public backlash. Local media often help our story proliferate, for better or worse.

Q2. Give a block diagram in establishing the design and quality standards of technology recipient site. (10 marks)

Q3. Market decisions do not ensure optimum allocation of resources. (10 marks)

The basic principles of marketing management are analysis, planning, implementation and control. Planning is the most important part of marketing management and marketing managers need to make the right plan for a durable success. Good plans denote decision making. Market decisions do not ensure optimum allocation of resources. Let us explain:

Marketing objectives: Setting up the objective is the first task done by the marketing managers. For running a successful marketing campaign it is very essential that what the team is going to do. Here making the right decision is the key to achieve the goal. Managers should do SWOT analysis and then what requires to develop the present market or how to increase the present value of the company. Then everything should go through in a proper way by the analysis and make the objectives from the requirements or opportunities from the above analysis.

Marketing strategies: Strategies is the means of the process that objectives are achieved. Objectives means what is to be done and strategies means how is to be done. Marketing strategies of the company is the important thing by which the operational decisions are made and the marketing and corporate objectives achieved within the time periods specified for the plan.

Product & market scope, segments, targets etc.: Actual condition of the company’s marketing program is come from the actual research of marketing mix including product, price, place and promotion. The product and the market scope come from the incisive SWOT analysis. An incisive SWOT analysis is very much important for a successful marketing campaign. Finding out the scope of the products and the market is such a way by which the marketing manager makes the decision. Segmenting the market helps for decision making because it shows what is needed and what is not needed. Target market helps to find out the existing and potential customers who are more specific and more dynamic.

Company targets: Every company have some target that what things they are going to do and what things they are not going to do. There have specific goals for every country that they must need something for that planning year. In these cases setting up the target in every sector of the company is very essential like sales target, market target, organizational target, corporate target etc. This will help to make the right decision.

Marketing mix decisions- 4Ps (product, price, place and promotion): Marketing mix decisions are considered as the most important decision making for marketing managers. It is an important part of planning. Marketing manager should have vast knowledge about the product because marketing manager needs to represent it to the customers through in many ways. Pricing is very crucial element as it is the only element in marketing mix that produces revenue. Implementing products on the right place is very important because targeted customers come from this element of marketing mix. It has been said that the more you promote the product, the more you produce revenue.

 BUSINESS MANAGEMENT

Answer the following question.

Q1. What are implied policies (10 marks)

Implied policies are not explicit policies, still a functionary can take decisions on certain day to day matters that are not specifically stated in the approved policies assuming that it will come under the broad policy framework of the organization and will be accepted by the top management. It requires a better understanding of the approved policies, the views of the superiors, functioning of the unit concerned and future consequences to relate such instances to implied policies.

Implied policies are those evolved by themselves when a series of decisions are made by managers over a period of time. These policies exist in an unwritten form. They are not consciously formulated but emerge from recurring managerial decisions.

Sometimes, policies are not clearly stated, and the actions of managers, particularly at higher levels, provide guidelines for actions at the lower levels. These actions might be constituting policy. Or sometimes, the orgnaisation have clearly expressed policies for its image, but it is unable to enforce these. In such a case, the action of a decision-maker, consciously or unconsciously, depends upon their own guidelines, prejudices and whims. Moreover, in the absence of any specific guideline, decision is based on individual interpretation of actions observed in the orgnaisation crating chaos.

Q2. Explain periodic reviews of policies (10 marks)

Periodic and continuous reviews are two common methods used to track inventory for accounting and ordering purposes. Policies providing for each type of inventory review have advantages and disadvantages.

Periodic policy review involves counting and documenting inventory at specified times. For example, a retail store operating under a periodic review policy might count inventory at the end of each month. Continuous inventory review, also known as perpetual review, involves a system that tracks each item and updates inventory counts each time an item is removed from inventory. For example, a retailer may use bar code scanners to record customer purchases and update inventory counts every time a cashier scans a product code.

Periodic policy review reduces the time a business owner or manager spends analyzing inventory counts, which allows more time for other aspects of running the business. However, it may not provide accurate inventory counts for businesses with high-volume sales. The owner or manager must make assumptions between inventory review periods regarding inventory counts. This can make it difficult to ascertain when reordering items is necessary. It also can make accounting less accurate.

Perpetual policy review permits real-time updates of inventory counts, which can make it easier to know when to reorder items to replenish inventory. This method of inventory review also facilitates accurate accounting, since the inventory system can generate real-time costs of goods sold. The main disadvantage of this type of inventory review is the cost of implementation -- bar code scanners, inventory software and computer systems are all necessary to maintain perpetual inventory review.

The type of  review policy appropriate for a business depends on several factors, including the sales volume of the business and the number of employees handling inventory. A sole proprietorship with limited sales may not need to adopt a continuous review policy to maintain a level of accuracy necessary to continue business operations. Conversely, a large retailer with numerous employees handling merchandise may have difficulty maintaining accurate inventory counts under a periodic inventory review policy

Q3. Explain discovery of an idea (10 marks)

It would be logical to assume that the discovery of fission preceded the invention of the atomic bomb. It would be normal also to expect that no single individual could really claim to be "the inventor", since the possibility sprang naturally from a physical process, and required the efforts of many thousands to bring it into existence. Many descriptions of the origin of atomic bombs can be found that logically and normally say exactly these things.

But they are not correct.

The idea of "invention" does not usually require the physical realization of the invented thing. This fact is clearly recognized by patent law, which does not require a working model in order to award a patent. It is common for inventions to require additional discoveries and developments before the actual thing can be made. In these cases, an invention may fairly have more than one inventor - the originator of the principle idea, and the individual who actually made the first workable model.

In the case of the atomic bomb there is clearly one man who is the originator of the idea. He was also the instigator of the project that led ultimately to the successful construction of the atomic bomb, and was a principal investigator in the early R&D both before and after the founding of the atomic bomb project - making a number of the key discoveries himself. By any normal standard this man is the inventor of the atomic bomb

A business idea is a concept that can be used for financial gain that is usually centered on a product or service that can be offered for money. An idea is the first milestone in the process of building a successful business.

The characteristics of a promising business idea are:

·         Innovative

·         Unique

·         Problem solving

·         Profitable

A business idea is often linked to its creator who needs to be truly convinced of the business value in order to make it happen

For businesses this could mean; creating new ideas, new product development through research and development or improving existing services. Innovation can be the central focus of a business and this can help them to grow and become a market leader if they execute their ideas properly. Businesses that are focused on innovation are usually more efficient, cost effective and productive. Successful innovation should be built into the business strategy, where you can create a culture of innovation and drive forward creative problem solving.

Q4. Explain types of business (10 marks)

There are various forms of business entities in India:

·         Private Ltd Company

·         Public Ltd Company

·         Unlimited Company

·         Sole proprietorship

·         Joint Hindu Family business

·         Partnership

·         Cooperatives

·         Limited Liability Partnership(LLP)

·         Liaison Office

·         Branch Office

·         Project Office

·         Subsidiary Company

Private Ltd Company

A private company has the following features:

1.      Restricts the right of the shareholders to transfer their shares.

2.      Has a minimum of 2 and maximum of 50 members.

3.      does not invite public to subscribe to its share capital

4.      Must have a minimum paid up capital of Rs. 1 lakh or such a higher amount which may be prescribed from time to time.

Public Ltd Company :

 

A public Ltd company has the following characteristics:

1.      It allows the shareholders to transfer their shares.

2.      Has a minimum of 7 members, and for maximum there is no limit.

3.      it invites the general public to subscribe to its shares

4.      Must have a minimum paid up capital of Rs 5 lakh or such a higher amount as may be prescribed from time to time.

Unlimited Company

Unlimited Company is a form of business organization under which the liability of all its members is unlimited. The personal assets of the members can be used to settle the debts. It can at any time re-register as a limited company under section 32 of the Companies Act.

Sole proprietorship

Sole proprietorship is a form of business entity where a single individual handles the entire business organization. He is the sole recipient of all profits and bearer of all loses. There is no separate law that governs sole proprietorship.

Joint Hindu Family

Joint Hindu Family is a form of business organization wherein the members of a family can only own and manage the business. It is governed by Hindu Law.

Partnership

Partnership is “the relation between persons who have agreed to share the profits of the business carried on by all or any one of them acting for all”. It is governed by the Indian Partnership Act 1932.

Co-operatives

Co-operatives is a form of voluntary organization, wherein the members work together for the promotion of the interests of its members. There is no restriction to the entry or exit of any member. It is governed by Cooperative Societies Act 1912.

Limited Liability Partnership

Under LLP (Limited Liability Partnership) the liability of at least one member is unlimited whereas rest all the other members have limited liability, limited to the extent of their contribution in the LLP. Unlike general partnership this kind of partnership does not get terminated by the death or insolvency of the limited partners. It is governed by Limited Liability Partnership Act of 2008.

Liaison Office
Liaison Office is a kind of representative office which is set up to understand the business and investment environment. It is barred from taking up any commercial/industrial/trading activity and its role is limited to aggregation of information and promotion of exports/imports. It has to maintain itself out of inward remittances received from the parent company.

Branch Office

Foreign companies which are into manufacturing and trading activities abroad are permitted to set up branch offices in India for various purposes like rendering of professional and consultancy services, export/import of goods etc. Branch offices are not permitted to carry out manufacturing activities on their own. RBI is the statutory body that grants permission to foreign companies for setting up branch offices in India.

Project Office

Foreign companies can set up temporary project offices in India for carrying out activities related to that specific project.

Subsidiary Company

In India the sectors where 100% foreign direct investment is permitted there foreign companies can set up wholly-owned subsidiary. The wholly-owned subsidiary can be either of the following business entities:

·         Private Ltd Company

·         Public Ltd Company

·         Unlimited Company

·         Sole Proprietorship

Business Planning and Policy

Answer the following question.

Q1. What does strategic management planning involves? (10 marks)

The strategic management process is more than just a set of rules to follow. It is a philosophical approach to business. Upper management must think strategically first, then apply that thought to a process. The strategic management process is best implemented when everyone within the business understands the strategy. The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring.

Goal-Setting

The purpose of goal-setting is to clarify the vision for your business. This stage consists of identifying three key facets: First, define both short- and long-term objectives. Second, identify the process of how to accomplish your objective. Finally, customize the process for your staff, give each person a task with which he can succeed. Keep in mind during this process your goals to be detailed, realistic and match the values of your vision. Typically, the final step in this stage is to write a mission statement that succinctly communicates your goals to both your shareholders and your staff.

Analysis

Analysis is a key stage because the information gained in this stage will shape the next two stages. In this stage, gather as much information and data relevant to accomplishing your vision. The focus of the analysis should be on understanding the needs of the business as a sustainable entity, its strategic direction and identifying initiatives that will help your business grow. Examine any external or internal issues that can affect your goals and objectives. Make sure to identify both the strengths and weaknesses of your organization as well as any threats and opportunities that may arise along the path.

Strategy Formulation

The first step in forming a strategy is to review the information gleaned from completing the analysis. Determine what resources the business currently has that can help reach the defined goals and objectives. Identify any areas of which the business must seek external resources. The issues facing the company should be prioritized by their importance to your success. Once prioritized, begin formulating the strategy. Because business and economic situations are fluid, it is critical in this stage to develop alternative approaches that target each step of the plan.

Strategy Implementation

Successful strategy implementation is critical to the success of the business venture. This is the action stage of the strategic management process. If the overall strategy does not work with the business' current structure, a new structure should be installed at the beginning of this stage. Everyone within the organization must be made clear of their responsibilities and duties, and how that fits in with the overall goal. Additionally, any resources or funding for the venture must be secured at this point. Once the funding is in place and the employees are ready, execute the plan.

Evaluation and Control

Strategy evaluation and control actions include performance measurements, consistent review of internal and external issues and making corrective actions when necessary. Any successful evaluation of the strategy begins with defining the parameters to be measured. These parameters should mirror the goals set in Stage 1. Determine your progress by measuring the actual results versus the plan. Monitoring internal and external issues will also enable you to react to any substantial change in your business environment. If you determine that the strategy is not moving the company toward its goal, take corrective actions. If those actions are not successful, then repeat the strategic management process. Because internal and external issues are constantly evolving, any data gained in this stage should be retained to help with any future strategies.

Q2. Define strategic management. What are the characteristics of strategic management? (10 marks)

Strategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry.

Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance. The manager must have a thorough knowledge and analysis of the general and competitive organizational environment so as to take right decisions. They should conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats), i.e., they should make best possible utilization of strengths, minimize the organizational weaknesses, make use of arising opportunities from the business environment and shouldn’t ignore the threats.

Strategic management is nothing but planning for both predictable as well as unfeasible contingencies. It is applicable to both small as well as large organizations as even the smallest organization face competition and, by formulating and implementing appropriate strategies, they can attain sustainable competitive advantage.

It is a way in which strategists set the objectives and proceed about attaining them. It deals with making and implementing decisions about future direction of an organization. It helps us to identify the direction in which an organization is moving.

Strategic management is a continuous process that evaluates and controls the business and the industries in which an organization is involved; evaluates its competitors and sets goals and strategies to meet all existing and potential competitors; and then reevaluates strategies on a regular basis to determine how it has been implemented and whether it was successful or does it needs replacement.

Characteristics of strategic management are:

1. Uncertain :Strategic management deals with future-oriented non-routine situation. They create uncertainly. Managers are unaware about the consequences of their decisions.
2. Complex :Uncertainly brings complexity for strategic management. Managers face environment which is difficult to comprehend. External and internal environment is analysed.
3. Organization wide :Strategic management has organization wide implication. It is not operation specific. It is a systems approach. It involves strategic choice.
4. Fundamental :Strategic management is fundamental for improving the long-term performance of the organization.
5. Long-term implication :Strategic management is not concerned with day-to-day operation. It has long-term implications. It deal with vision, mission and objective.
6. Implication :Strategic management ensure that strategic is put into action implementation is done through action plans. 

 Corporate Law

Answer the following question.

Q1. Explain dissolution. (10 marks)

In law, dissolution has multiple meanings.

Dissolution is the last stage of liquidation, the process by which a company (or part of a company) is brought to an end, and the assets and property of the company redistributed.

Dissolution may also refer to the termination of a contract or other legal relationship; for example, the dissolution of a marriage, or divorce.

Dissolution is also the term for the legal process by which an adoption is reversed. While this applies to the vast majority of adoptions which are terminated, they are more commonly referred to as disruptions, even though that term technically applies only to those that are not legally complete at the time of termination.

In international law, dissolution is when a state has broken up into several entities, and no longer has power over those entities, as it used to have previously. An example of this is the case of the former USSR dissolving into different republics.

Act or process of dissolving; termination; winding up. In this sense it is frequently used in the phrase dissolution of apartnership.

The dissolution of a contract is its. Rescission by the parties themselves or by a court that nullifies its binding force andreinstates each party to his or her original position prior to the contract.

The dissolution of a corporation is the termination of its existence as a legal entity. This might occur pursuant to a statute,the surrender or expiration of its charter, legal proceedings, or Bankruptcy.

In domestic relations law, the term dissolution refers to the ending of a marriage through Divorce.

Thedissolution of a partnership is the end of the relationship that exists among the partners as a result of any partnerdiscontinuing his or her involvement in the partnership, as distinguished from the winding up of the outstanding obligations ofthe business.

In contracts. The dissolution of a contract is the cancellation or abrogation of it by the parties themselves, with the effect of annulling the binding force of the agreement, and restoring each party to his original rights. In this sense it is frequently used In the phrase "dissolution of a partnership. The dissolution of a corporation is the termination of its existence as a body politic. This may take place in several ways; as by act of the legislature, where that is constitutional; by surrender or forfeiture of its charter; by expiration of its charter by lapse of time; by proceedings for winding it up under the law; by loss of allits members or their reduction below the statutory limit.

Q2. Distinguish sale and hire purchase (10 marks)

Most of us are aware of sale agreement only, which is another name of invoice that we get when we make a payment for an item through cash or credit card. However, there is also a system of purchase that allows a buyer to pay in installments and yet get ownership rights of the item when he makes payment of the last stipulated installment. This is called hire purchase, and is a popular sale agreement in some parts of the world. This is a contract between a vendor and a buyer that has the provisions clearly spelt out while allowing the buyer to enjoy the usage of the product. There are many more differences between an outright sale and hire purchase that shall be discussed in this article.

Hire purchase is a contract between a vendor and a buyer where the buyer agrees to pay the price of an item in part (which may be a fixed percentage of the total price). These installments are decided on the basis of the full price plus interest divided by the duration of the contract thus, arriving upon the installment. This is usually done to make buying a product that is expensive look attractive to people. Though it looks similar to a mortgage or buying in installments like a car loan, hire purchase is different in the sense that the buyer does not get ownership rights of the product until he pays the final installment. On the other hand, buying on installments makes one a legal owner of a product. Businessmen find this proposition attractive as they do not have to show the item thus purchased in their books until they have paid the final installment. Ownership is one major point of difference in a sale and a hire purchase.

Since we have bought a product, you cannot terminate the contract, while there is a provision whereby, a buyer in hire purchase can disregard the contract and refuse to pay further installments, returning the product to the vendor. So in a sale, whether we are buying a cheap or an expensive item, you make the payment at the time of sale, whereas we can stop paying installments in hire purchase.

If we have paid and bought a car, we can resell it whenever we so desire, but if we have got the car under hire purchase, we are not a legal owner of the car until we have paid the final installment. In hire purchase, the vendor has the right to get back the product, if the buyer is a defaulter, so there is no loss to the seller. Though hire purchase is a good system, its need is somewhat reduced, what with credit being readily available for all sorts of product from banks these days.

Q3. Explain delivery (10 marks)

The transfer of possession of real property or Personal Property  from one person to another.

Two elements of a valid gift are delivery and donative intent. Delivery is not restricted to the actual physical transfer of anitem—In some cases delivery may be symbolic. Such is the case where one person gives land to another person. Landcannot be physically delivered, but delivery of the deed constitutes the transfer if coupled with the requisite intent to passthe land on to another.

Similarly, delivery can take place in a situation where goods are set apart and notice is given to whoever is scheduled toreceive them. This is known as constructive delivery.

The transferring of a deed from the grantor to the grantee in such a manner as to deprive him of the right to recall it, or the delivery may be made and accepted by an attorney. This is indispensably necessary to the validity of a deed except for the deed of a corporation, which must be executed under their common seal. But although, as a general rule the delivery of a deed is essential to its perfection, it is never averred in pleading.

As to the form, the delivery may be by words without acts; such as if the deed be lying upon a table, and the grantor says to the grantee, 'take that as my deed'; or it may be by acts without words, and therefore a dumb man may deliver a deed.

A delivery may be either absolute, as when it is delivered to the grantor himself; or it may be conditional, such as to a third person to keep until some condition shall have been performed by the grantee, and then it is called an escrow.

Contracts. The transmitting the possession of a thing from one person into the power and possession of another.

Originally, delivery was a clear and unequivocal act of giving possession, accomplished by placing the subject to be transferred in the hands of the buyer or his avowed agent, or in their respective warehouses, vessels, carts, and the like. This delivery was properly considered as the true badge of transferred property; as importing full evidence of consent to transfer; preventing the appearance of possession in the transferrer from continuing the credit of property unduly; and avoiding uncertainty and risk in the title of the acquirer.

However, the complicated transactions of modern trade render strict adherence to this simple rule impossible. It often happens that the purchaser of a commodity cannot take immediate possession and receive the delivery. The bulk of the goods; their peculiar situation, as when they are deposited in public custody for duties, or in the hands of a manufacturer for the purpose of having some operation performed upon them; the frequency of bargains concluded by correspondence between distant countries and many other obstructions, frequently render it impracticable to give or receive actual delivery. In such cases, something short of actual delivery has been considered sufficient to transfer the property.

In sales, gifts, and other contracts, where the party intends to transfer the property, the delivery must be made with the intent to enable the receiver to obtain dominion over it. The delivery may be actual, by putting the thing sold in the hands or possession of the purchaser; or it may be symbolical, as where a man buys goods which are in a room, the receipt of the keys will be sufficient.

There is sometimes considerable difficulty in ascertaining the particular period when the property in the goods sold passes from the vendor to the vendee; and what facts amount to an actual delivery of the goods. Certain rules have been established, and the difficulty is to apply the facts of the case.

Where goods are sold, if nothing remains to be done on the part of the seller as between him and the buyer before the article is to be delivered, the property has passed.

Where a chattel is made to order, the property therein is not vested in the quasi vendee until finished and delivered, though he has paid for it.

The criterion to determine whether there has been a delivery on a sale is to consider whether the vendor still retains, in that character, a right over the property.

Where a part of the goods sold by an entire contract has been taken possession of by the vendee, that shall be deemed a taking possession of the whole. Such partial delivery is not a delivery of the whole so as to vest in the vendee the entire property in the whole, where some act, other than the payment of the price, is necessary to be performed in order to vest the property.

Where goods are sent by order to a carrier the carrier receives them as the vendee's agent.

A delivery may be made in a very slight manner; as where one buys goods which are in a room, the receipt of the key is sufficient.

The vendor of bulky articles is not bound to deliver them, unless he stipulated to do so; he must give notice to the buyer that he is ready to deliver them.

A sale of bricks in a brick-yard, accompanied with a lease of the yard until the bricks should be sold and removed, was held to be valid against the creditors of the vendor, without an actual removal.

Where goods were contracted to be sold upon condition that the vendee should give security for the price, and they are delivered without security being given, but with the declaration on the part of the vendor that the transaction should not be deemed a sale until the security should be furnished; it was held that the goods remained the property of the vendor, notwithstanding the delivery. But it seems that in such cases the goods would be liable for the debts of the vendee's

VISIT WWW.CASESTUDYANDPROJECTREPORTS.COM FOR MBA EXAM QUESTION AND ANSWER