Communication 1 PDF

COMMUNICATION CA-IPC
Chapter ESSENTIALS OF
1 COMMUNICATION
1.1 COMMUNICATION:- Meaning, Importance
Q-1 What is Communication?
Answer:-The word Communication has been derived from the Latin word 'communis' which means to
share. Communication is a process by which information is exchanged between individuals through a
common system of symbols, signs or behaviors.
It is the process of passing information and understanding from one person to another. It is the process
of imparting ideas and making oneself understood by others.
Q-2 What is the importance of Communication?
Answer:-Following are some of the factors responsible for the growing importance of Communication:-
Growth in the size and multiple locations of organization:-Modern complex organizations are large,
consisting of numerous employees working towards accomplishing common goals. Employees are
spread in different departments, locations and being in touch with them is possible through
effective communication.
Growth of the size of trade union:-proper communication is necessary with the trade union in order
to negotiate and take them into confidence for smooth flow of work.
Human relations:-workers are not machines; they are living persons having their own needs and
feelings. Communications helps manager to build strong relationships and boosting morale of the
employees.
Public Relations:-Every organization has a social responsibility, towards its Customers, Suppliers,
Government and the public at large. Proper Communication with all Stakeholders helps an
organization to build a positive image of itself.
Technological Advancement:-Scientific and technological advancements have an effect on the

methods of work. In such a situation, proper communication between superiors and subordinates
becomes very necessary so as to update the employees with new development.
1.2 PROCESS OF COMMUNICATION
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Q-3 Explain Communication Process.
Answer:-Communication is a dynamic, transactional i.e. two-way process, in which there is an exchange

of ideas linking the sender and receiver towards a mutually accepted direction or goal. Communication
process consists of seven elements:-
Sender:-The Communication process begins with the Sender, the person who has an idea and wants
to share it.
Encoding:-The Sender must choose certain words or non – verbal methods to translate the idea
into a message, this activity is called Encoding.
Message:-Message is the idea or subject matter of communication which is transmitted to the

Receiver.
Channel/Medium:-Channel refers to the path/route through which the Message is communicated

by the Sender to the Receiver. It may be face to face conversation, a telephonic conversation, in
written form or through any other form of physical gestures.
Receiver:-Receiver is the person to whom a message is sent or intended to be sent.
Decoding:-Decoding is the process of understanding the message in its intended sense.
Feedback:-After decoding the message, the Receiver reacts or responds to the communication sent
by the Sender. This is known as "Feedback".
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1.3 FORMAL COMMUNICATION
Q-4 What is Formal Communication?
Answer:-Formal communication is an official communication which takes place through well defined
channels. Every organization has in-built Hierarchical system that can be compared to a Pyramid. It can,
therefore be understood that communication normally flows from top to bottom but it is not always
so. Communication in an orgabisation is multidimensional or multidirectional.
Q-5 What are the types of Formal Communication?
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Answer:-Formal Communication in an organization can be:-
Downward Communication:-Here, communication operates from superior to subordinate i.e. when

people operating at higher level communicate with people operating at lower level.
Upward Communication:-It means communication from subordinate to senior i.e. when people
operating at lower level
communicate with people operating at higher level.
Horizontal or lateral Communication:-It means communication between coworkers of different area

of responsibility i.e., when two or more persons working on the same level communicates with each
other.
Diagonal or Crosswise Communication:-Here, communication operates between superior of one

department and subordinate of other department.
Q-6 Explain Merits/Advantages of Formal Communication?
Answer:-The Advantages of Formal Communication are as follows:-
Systematic:-Such communication is systematic and ensures orderly flow of information
Effective:-Formal channel are the most Effective means of communication, since it is followed by
Subordinates.
Better reach:- Formal channels covers an ever-widening distance as organization grow. Through them
it is easier to reach out to the branches of an organization spread far and wide.
Consolidation:- Formal channels of communication consolidate the organization and satisfy the
people in managerial position.
Q-7 Explain Demerits/Disadvantages of Formal Communication?
Answer:-The Disdvantages of Formal Communication are as follows:-
Time consuming:- It consumes lot of time as it passes through different levels of hierarchy.
No Immediate feedback:-Not suitable for situations requiring immediate feedback / response.
Lacks human touch:-It does not improve human realtion since it is used in an impersonal manner.
1.4 INFORMAL COMMUNICATION
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Q-8 What is Informal Communication?
Answer:-It arises out of all those channels that fall outside the formal channels and it is also known as
grapevine. It is not officially sanctioned and is quite often discouraged, but then it is very much there
because it moves in all the directions horizontal, vertical, diagonal.
Q-9 What are the factors leading to Grapevine Phenomenon?
Answer:-The Grapevine becomes active when the following factors are present:-
Feeling of uncertainty or lack of sense of direction when the organization is passing through a
difficult period.
Feeling of inadequacy or lack of self confidence on the part of the employee, leading to formation
of groups
Formation of Coteroie or favoured group by the manager, giving other employees a feeilng isolation
and insecurity. People in such circumstances will be filled all sorts of ideas and share them with like
minded companions, at whatever level that may be.
Q-10 Explain Merits/Advantages of Informal Communication?
Answer:- The Merits of Informal Communication are as follows:-

Speedily Transmission:-Grapevine transmits information very speedily as it does not have defined
channels of communication.
Immediate Feedback:-Through grapevine, Managers get feedback regarding their policies, decisions,
memos, etc. quickly.
Parallel Channel:-Informal Channel functions as a supplementary or parallel channel of

communication.
Human relations:-Grapevine gives great psychological satisfaction to the workers.
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Q-11 Explain Demerits/Disadvantages of Formal Communication?
Answer:-The Demerits of Informal Communication are as follows:-

Less Authenticated:-Information spread through the grapevine is less reliable and credible than the
one given by the formal channel.
Incomplete Information:-The Grapevine does not always carries the complete information. Thus one
may not get the complete picture on its basis.
Spoil the Image:- The Grapevine often distorts the picture or often misinforms. As the origin lies in
the rumour mill it may spread any kind of stories about responsible people. In this way the grapevine
may spoil the image of the organization.
Q-12 What are the types of Grapevine Chains?
Answer:-Specialists in this field have identified four types of Grapevine Chains

Single Strand Chain - in this type of chain A tells something to B who tells to C and so on it goes down
the line. This type of chain is the leas accurate in passing on the information.
Gossip Chain – in this one person seeks out and tells everyone the information he has obtained. This
chain is often used when information or a message regarding ‘not a job’ nature is obtained.
Probability Chain – in this one persons communicates randomly with others and they further
communicates randomly . The individuals are indifferent to the persons to whom they are
communicating the information. The chain is somewhat interesting but not really significant.
Cluster Chain – in this one person tells something to few selected individual and then some of these
inform a few other selected individuals.
1.5 INTER-DEPARTEMENTAL COMMUNICATION
Q-13 What is Inter Departmental Communication?
Answer:-It is the process through which various departments in an organization send and receive
messages between themselves. For the communication to be effective, one department must send a clear
and complete message to another department.
Q-14 What are the causes of Interdepartmental Communication

Problems?
Answer:-The causes of Interdepartmental Communication problems are as follows:-
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1. Physical Separation – Office Design may create barriers to effective interdepartmental

communications. Office design should be such which promotes effective communication between
departments
2. Functional Separation – Barriers are also caused by different priorities. What may be the first priority
for one Department may be the last priority for other Department. Management, should bridge the
gap between the different departments.
1.6 ORAL COMMUNICATION
Q-15 What is Oral Communication?
Answer:-Oral Communication is face-to-face communication with another person. Speeches,

presentations, discussions are all forms of oral communication.
Q-16 What are the Features or characteristics of good Oral

Communication?
Answer:-The following are the characteristics of good Oral Communication:-

▪ Consider the objective.
▪ Assess the interest level of the Receiver.
▪ Use the correct pitch.
▪ Use simple language, & familiar words.
▪ Be brief and precise.
▪ Avoid vagueness and generalities
▪ Give full facts.
▪ Use polite words and tone.
Q-17 What are the Advantages of Oral Communication?
Answer:-Advantages of Oral Communication are as follows:-

Direct Contact:-More effective due to direct contact between sender and receiver.
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Quick response:-It gets Quick and immediate response from the receiver.
Time saving:-It saves a lot of time, money and efforts.
For conveying emotions:- It conveys feelings and emotions in a much better way
Chances of Improving:-Helps us to correct ourselves since no record of it is kept.
Q-18 What are the Limitations of Oral Communication?
Answer:-Limitations of Oral Communication are as follows:-

Cannot be taken back:-A word once uttered cannot be taken back.
Less reliable:-Less authentic as it is informal and not organized
To be conscious:-It is difficult for the speaker to be conscious of the body language.
Not effective for distance Communication:-Oral communication is not possible when the sender and
the receiver are at distant places.
1.7 WRITTEN COMMUNICATION
Q-19 What is written Communication?
Answer:-Written communication takes place by written words in the form of letters, memos, circulars,
reports, magazines etc. It is a formal means of communication.
Q-20 What are the Advantages of Written Communication?
Answer:-Advantages of Written Communication are as follows:-

Better for complex opinions:-Mainly used to convey specific instructions and orders to subordinates.
Better for Lengthy Meesages:-Effective when the message is lengthy.
Permanent:-It is more precise and permanent means of communication.
Ready Records:-It provides opportunity to refer back as it have ready records.
Q-21 What are the Disdvantages of Written Communication?
Answer:-Limitations or Disadvantages of Written Communication are as follows:-

Time Consuming:-It is time consuming.
No immediate feedback:-Immediate feedback is not available.

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Creates Misunderstanding:-May lead to misunderstanding if the message is poorly drafted.
Unread:-Never know if the message is ever read
It is expensive:- It costs huge in terms of stationary and the manpower involved in writing.
1.8 NON-VERBAL COMMUNICATION
Q-22 What is non-verbal communication?
Answer:- Non verbal communication is communication of feelings, emotions, attitudes and thoughts
through body movements, gestures, eye contact etc.
Q-23 What are the forms of non-verbal communication?
Answer:-Some forms of Non – Verbal Communication are:-
Kinesics or Body Language:-It refers to the bodily movements, gestures, postures etc, through which
our body signals / communicates our feelings and thought process.
Some examples of body movements are - nodding of head, blinking of eyes, waving of hands,
shrugging of shoulders, etc. Some aspects that can be effectively communicated using body language
are - nervousness, anger, fear, horror, sympathy etc.
Paralanguage:-It refers to vocal communication that is separate from actual language. It includes
factors such as tone of voice, loudness etc. Through these special cues, the Speaker can convey aspects
like enthusiasm, confidence, anxiety, urgency, etc.
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Artifactual Communication:-This is communication by appearance. Choice of color, clothing,

hairstyles and other factors affecting appearance are also considered a means of nonverbal
communication.
Proxemics / Space Language:-It refers to the space that exists between the Speaker and the
Listener. The following four space zones indicate the type of communication and the
relationship of the Sender and the Receiver:-
✓ Intimate:-Physical contact to 18 inches.
✓ Personal:-18 inches to 4 feet
✓ Social:-4 feet to 12 feet.
✓ Public:-12 feet to as far as one can see or hear.
➢ Chronemics or Time Language:-It is the study of how we use time to communicate. Punctuality
is an important factor in time communication. Misunderstandings or disagreemnets involving
time can create communication and relationship problems.
➢ Haptics:-This is communication through touch, and sends important messages about the Speaker to
the Receiver.
➢ Silence:-Silence can effectively communicate a number of responses like respect, fear, resentment,
lack of interest, etc. The most effective use of silence can be made by giving a slight pause before or
after making an important point in the speech. A slight puse before an important point creates
suspense, it raises a sense of anticipation and the audience listens to the next point more attentively.
Q-24 What is Paralanguage?
Answer:-Paralanguage is a study of how a speaker verbalizes or speaks. It shows as to how the words are
spoken. It can be defined as vocal features that accompany speech and contribute to communication but
are not a part of the language system such as volume, pitch, speed of speaking etc. Para language tells
the speaker on 'how to communicate'.
Pitch Variation:-Pitch Variations are necessary to catch the Listener's attention and to keep him
interested in the speech. Speaking continuously on the same level of pitch makes the speech
“monotonous” or boring.
Speaking Speed:-Speaking fast or at a high speed does not represent fluency. A speech should
present the easy parts of message at a brisk pace, however the difficult part of information should be
conveyed at a slower pace.
Pause:-Pause refers to breaks during speaking. A pause can be highly effective in gaining the Listener's
attention. However incorrect use or frequent pauses will spoil the speech.
Volume Variations:-The voice should be loud enough to be audible to the audience, but not too loud.
The larger the audience, the higher the volume.
Non – Fluencies:-Utterances like 'oh', 'ah', 'you know', 'ok', etc. are known as non – fluencies.
These kind of space fillers give the Speaker breathing time and the audience time to think over what
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has been said (grasp-breaks). If used carefully and judiciously, these utterances add to the fluency of
the Speaker.
Word Stress:-Proper word stress is of crucial importance in communication. By putting stress or

emphasis on a certain word in the same sentence, we can change the meaning.
1.9 EFFECTIVE COMMUNICATION
Q-25 What are the Barriers to Effective Communication?
Answer:-The Barriers of Effective Communication are as follows:-
Noise:-Noise refers to interference that occurs in a signal and prevents the Listener from hearing
sounds properly. Examples are noise made by machines, some technical problem in telephone lines
etc. Noise does not mean only this. The receiver may mess up the message owing to inattention or
may spoil decoding due to wrong or unexpected interpretation.Some of the sources contributing
towards noise factors are as follows:-
▪ Poor Timing:- A lost moment communication with dedline may put too much pressure on the
receiver and may result in resentment.
▪ Inappropriate Channel:-Poor choice of channel of communication can also be contributory to
them is understanding of message.
▪ Network Breakdown:-Sometime staff may forget to forward a letter or there may be professional
jealousy resulting in closed channel.
Lack of Planning:-Communication should be done with proper planning. Proper channel, place and
time should be considered before communication.
Semantic Problems:-Semantics is systematic study of meaning. Problems arising from expression or

transmission of meaning in communication are called Semantic Problems. It is not always necessary
for the meaning of every word in the mind of the Sender, to be the same as in the mind of Receiver.
The Sender has to aim at clarity, simplicity, so that the Receiver gets the intended meaning and does
not misunderstand it.
Cultural Barriers:-Cultural differences come up as communication barriers in communication among

individuals from different religions and nationalities. The same category of words, phrases mean
different things to people of different countries or different cultural backgrounds.
Wrong Assumptions:- Quite often we act on assumptions, without caring to seek clarification for
them. We should make all possible efforts to maintain our goodwill and not act impulsively on
assumptions.
Emotions:-Both encoding and decoding of messages are influenced by emotions of the Sender and
Receiver. A message received when the Receiver is angry will have a different meaning for him than
when he is calm and composed.
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Selective Perception:-Selective perception means that the Receivers selectively see and hear
depending upon their needs, motivations. While decoding the messages, most Receivers interpret the
message in the manner they wish to and that may become a communication problem.
Poor Retention:-People are likely to forget the messages reaching them. This creates the necessity to
repeat the message and use more than one medium to communicate the same message.
Socio psychological barriers:-These are the barriers created due to the attitudes, opinions, status and
position of a person in the organization. A person may respond only to the information which agrees
with his opinions. Status consciousness proves to be a very serious barrier to face to face
communication. Subordinates are afraid of communicating upward any unpleasant information.
Poor Listening:-poor Listening may lead to serious communication problems. It accounts for
incomplete information and also poor retention.
Information Overload:-When People are bogged down with too much information they are likely to
make errors. They may delay processing or responding to information/message at least for sometime.
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Q-26 What are the Benefits of Effective Communication?
Ans:- The Benefits of Effective communication are as follows:-

✓ Quick problem solving.
✓ Effective decision – making.
✓ High motivation levels of employees.
✓ Increased productivity and efficiency.
✓ Steadier and disciplined work flow.
✓ Stronger business relationships with all Stakeholders.
✓ Enhanced professional and business image.
✓ Improved response from Stakeholder groups.
Q-27 What are the Guidelines for Effective Communication?
Ans:-The guidelines for effective communication are as follows:-

➢ Purpose:-Determine the purpose of the message, i.e. to inform, to persuade etc.
➢ Audience:-Before composing the speech, letter, memo or report, think about the Recipient of your
speech/document and the effect of the message on the Recipient.
➢ Idea Formation:-Evaluate whether the main idea is realistic given the length limitations imposed on
the message.
➢ Organize thoughts:-Organize your thoughts beforehand and determine what exactly you are trying to
say.
➢ Approach to Message:-If audience will be neutral, pleased, interested, or eager, use Direct Approach.
If audience will be Displeased, uninterested, or unwilling, use Indirect Approach.
➢ Details:-Decide upon the details to be included in the report. Include necessary information an avoid
information overload.
1.10 BUSINESS LETTERS
Q-28 Explain Parts of Business Letters.
Answer:- The parts of business letter are as follows:-
1. Heading
2. Reference Number
3. Date:
4. Inside Address:
5. Attention Line
6. Salutation:
7. Subject Line:
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8. Body of the Letter

9. Formal Close:
10. Signature Block
11. Enclosures
12. Postscript
13. Carbon Copy Notation:
14. Reference Initials
PAST YEAR QUESTIONS

MAY-2014
1. What important factors should be considered to make oral communication effective?
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2. Briefly explain the “Grapevine Chains” propounded by the experts in relation to informal way of
communication.
NOV-2013
3. State the major advantages of formal communication
4. “Communication is the life blood of business organization.” In this reference state the factors which
have increased the importance of communication in the current business world.
MAY-2013
5. State reasons for selecting “oral mode of communication”.
NOV-2012
6. Explain clearly the different types of grapevine chains in an informal communication
7. State the advantages of formal communication
MAY-2012
8. Explain the socio- psychological barriers of communication in relation to an organization
9. What do you understand by non -verbal communication? Explain its methods in brief
10. Mr. X has received a cheque book from his bank (sum bank) where he (X) has his saving account.
Write a letter to the Bank acknowledging the receipt of the cheque book.
NOV-2011
11. Point out the factors which lead to grapevine communication
12. Draft a business letter, presuming your facts that you have received the goods from the company
and you are sending payments.
13. What do you understand by the semantic Barriers to communication?
MAY-2011
14. Explain the merits and limitations of oral communication.
15. Importance of communication is increasing day by day in the business organization State the reasons
for the increasing importance
16. Write a note on ecological ethics

(i) how is noise a barrier to effective communication
NOV-2010
17. Explain the various forms of formal communication
18. State reasons for selecting the oral mode of communication instead of the written mode of
communication
NOV-2009
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19. What are the merits and demerits of grape vine form of Communication?
JUNE-2009
20. Explain the factors which are responsible for the growing importance of communication of an
organization
21. Draft a circular for employees insisting on punctuality.
MAY-2008
22. Explain clearly the meaning of the term Grape vine as applicable to communication.
23. Explain clearly the process of communication
24. Explain clearly the advantages of a formal communication?
Chapter INTER-PERSONAL
2 COMMUNICATION SKILL
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2.1 INTERPERSONAL COMMUNICATION
Q-1 What is Interpersonal Communication?
Answer:-Interpersonal communication is the universal form of communication that takes place between
two individuals. Since it is person to person contact, it includes everyday exchange that may be formal or
informal and can take place anywhere by means of words sounds, facial expression, gestures and
postures.
In interpersonal communication there is face to face interaction between two persons, that is both are
sending and receiving messages. This is an ideal and effective communication situation because you can
get immediate feedback, You can clarify and emphasize many points through your expressions, gestures
and voices.
Q-2 What is Importance of Interpersonal Communication?
Answer:-Inter-Personal Communication is important because

1. Positive Climate:-It aims at creating a positive communication climate in an organization.
2. Show viewpoints:-It conveys respect for the other person and different view points.
3. Problem solving:-It focuses on solving problems.
4. Equality:-It demonstrates an attitude of equality.
5. Represents Open-mindedness:-It reflects the communicator's open-mindedness.
Q-3 What is the Features/principles of Interpersonal Communication?
Ans:-The features of Interpersonal Communication are
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➢ Inescapable:-A person communicates not only through words, but also through tone of voice, gesture,
posture, facial expression, etc. People judge a person by his behavior.
➢ Irreversible:-The impact of words said cannot be taken back and will remain.
➢ Complicated:-Different methods are used for interpersonal communication which can be interpreted
in different manner. No two people use the same words.
➢ Contextual:-Communication does not happen in isolation and it has to be understood according to the
situation
Q-4 What are the Contexts in Interpersonal Communication?
Ans:-The various contexts in relation to Interpersonal Skills are:
➢ Relational Context:-Deals with relation of Speaker(s) and Listener(s) to each other.
➢ Situational Context:-Deals with the situation between the Speaker(s) and Listener
➢ Environmental Context:-Deals with the 'physical' aspects of communication, Furniture, location,

noise, level, temperature, season, time of day, etc. are examples of factors in the environmental
context.
➢ Cultural Context:-It deals with the culture between the parties. Both parties may have different
cultures and this should be considered while communicating.
Q-5 What are the Functions of Interpersonal Communication?
Ans:- The Functions of Interpersonal Communication are as follows:-
➢ Gaining Information:-It gives knowledge about other individual so that we can interact with him more
effectively. This information can be gained.
➢ Building Understanding:-It helps us to understand what the other person really wishes to communicate.
Content Messages refer to the meaning of a message. Relationship Messages refer to how a message
is said. Each of them affects the meaning of the message communicated.
➢ Establishing Identity:By engaging ourselves in Interpersonal Communication, we want to establish an

identity based on our relationships and the image we present to others.
➢ Interpersonal Needs:-It helps in expressing a person's interpersonal needs which are

✓ Inclusion - the need to establish identity with others.
✓ Control - the need to exercise leadership and prove one's abilities.
✓ Affection - the need to develop relationships with people.
Q-6 What are the Tips for Improving Interpersonal Skills?
Ans:-The tips for improving interpersonal skill are as follows:-

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➢ Open Mindedness:-There should be a will to accept and explore new ideas.
➢ Congruency in communication elements:-Words must send / convey the same message as the other
interpersonal communication element i.e. body language, facial expression, posture, movement, and
tone of voice. This will help in emphasizing the truth and reliability.
➢ Active Listening:-Effective or Active Listening helps to build strong personal relationships. The
Receiver needs to give the sender sufficient attention and make an effort to understand his viewpoint.
➢ Empathy:-The Receiver and Sender must align their mind to the intent, content and context of
communication. There is a need appreciate the other party's view so that effective communication
can be achieved.
2.2 ACTIVE LISTENING
Q-7 What is Active Listening? Explain its advantages.
Ans:-Hearing is through ears and listening is by mind. So Listening happens when the Receiver
understands the message as intended by the Sender.
Advantages:
▪ Helps the organization in achieving its objectives and goals.
▪ Helps individuals to advance in their careers.
▪ Helps build strong personal relationships.
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Q-8 What are the Guidelines for Active Listening?
Ans:-The following are the guidelines for Active Listening
➢ Look at the Speaker and suspend other activities. Otherwise it would not be possible to
understand the speaker's intentions.
➢ Be interested in what the Speaker is saying. Taking notes will keep body and mind active.
➢ Listen to the pitch and tone of voice and modulation. Look at gestures and body language. These
may carry an unspoken message.
➢ Restate what the Speaker said. It helps the Listener to make sure that he understands the Speaker
clearly.
➢ Ask questions once in a while to clarify the meaning in order to know that the listener has been
listening effectively
2.3 CRITICAL THINKING
Q-9 What is Critical Thinking?
Ans:-Critical Thinking is the discipline of skillfully using information, experience, observation and
reasoning to guide one's decisions, actions and beliefs.
Critical Thinking refers to the act of questioning every step of the thinking process.
Q-10 What Skills are required for developing “Critical Thinking” attitude?
Ans:- following skills should be developed for Critical Thinking:-

➢ Analyze Cause and Effect: Separate the reason for an event (the cause) from the result or
outcome (the effect).
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➢ Classify and Sequence: Group items according to similar characteristics.

➢ Compare and Contrast: Determine how things are similar and how they are different.
➢ Infer: Extend the reasoning skills and logic, to come up with possible options or outcomes.
➢ Evaluate: Determine sound criteria for making choices and decisions.
➢ Predict: Find and analyze trends, and extend these to make sensible predictions about the future.
➢ Prioritize: Determine the importance of an event or situation
➢ Summarize: Prepare a brief report of what happened or what you have learned.
Q-11 What are the Qualities of a good Critical Thinker?
Ans:-The following qualities should be present in a Critical Thinker

➢ Open-minded: Readiness to accept and explore new ideas.
➢ Well-informed: Knowledge what is happening on all fronts.
➢ Experimental: Thinking through 'what if' scenarios to create probable options and then test the
theories to determine what will work and what will not be acceptable.
➢ Contextual: Keeping in mind only relevant facts and ignoring unnecessary details.
➢ Reserved in Making Conclusions: Avoid making immediate conclusions
2.4 EMOTIONAL INTELLIGENCE
Quote…
”Anybody can become angry that is easy but to be angry with the right person and to the right
degree and at the right time and for the purpose and in the right way that is not within
everybody;s power and it is not easy”.
Aristotle
Q-12 Explain Emotional Intelligence (EI) and Emotional Quotient (EQ).
Ans:-
Emotional intelligence can be defined as the ability to monitor one's own and other people's emotions,
to discriminate between different emotions and label them appropriately and to use emotional
information to guide thinking and behavior. EI is not fixed at birth. It is strengthened throughout adulthood.
Emotional Quotient Inventory is designed to measure a number of constructs related to EI. Emotional
Quotient or EQ is the ability to make and deepen connections at three levels:-
(a) with ourselves (personal mastery),
(b) with another person (one-to-one), and
(c) within groups / teams.
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Q-13 What are the Competencies associated with Emotional

Intelligence?
Ans:-A large part of our success in life is based on our EQ. How we manage our emotions and the way we
relate to others, determines how successful and satisfied we are. The competencies associated with EI
are of two types, viz –
Personal Competence (Managing Ourself / Self-Awareness):

▪ Self-Awareness: knowing one's own emotions and recognizing their impact
▪ Self-Assessment: Knowing one's strengths and weaknesses, in a reasonably accurate manner.
▪ Self-Confidence: A sound sense of one's self-worth and capabilities.
▪ Self-Management: Managing one's own interactions / responses.
▪ Self-Control: Keeping disruptive emotions and impulses under control.
▪ Transparency: Displaying honesty, integrity and trustworthiness.
Social Competence (Managing Relationships): Social Awareness

▪ Empathy: Sensing other's emotions, understanding their view points and taking active interest in
their concerns.
▪ Organizational Awareness: Reading the currents, decision networks, and politics at the
Organizational Level.
▪ Service: Recognizing and meeting follower, client, or customer needs.
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PAST YEAR QUESTIONS

MAY-2014
1. What are the guidelines for “Active Listeneing”?
MAY-2013
2. What is “Critical Thinking”? Define.
NOV-2012
3. Why is the 'critical thinking' important part of success and wisdom? What steps are required to
make it effective in a business organization?
MAY-2012
4. Why is the “Active Listening” important for an individual? State the guidelines for ‘Active Listening’.
NOV-2011
5. Explain the significance of active listening in inter personal communication skills.
MAY-2011
6. What are the tips for improving inter personal skills in a business organization?
NOV-2010
7. Explain the basic principles of interpersonal communication
MAY-2010
8. Why is the active listening important for an individual? State the guidelines for Acti ve
Listening
9. Explain the functions of interpersonal communication.
NOV-2009
10. What are the merits and demerits of grape vine form of Communication?
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JUNE-2009
11. What is meant by "Active listening"? State the importance of 'Active listening' in th e business
communication skills.
NOV-2007
12. What is meant by critical thinking? How shall you develop critical thinking?
MAY-2007
13. What is meant by Emotional Intelligence and Emotional Quotient? State any six social competences
associated with Emotional Intelligence
Chapter
3 GROUP DYNAMICS
3.1 GROUP
Q-1 What is Group?
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Ans:-A Group is a collection of individuals who Interact verbally and non-verbally for the achievement of
certain objective. A Group can be defined as “aggregate of people, from two upto an unsoecified bit not
too large a number, who associate together in face ot face relationships over a period of time.”
The members of group recognize andd have a certain attitude towards their group members and have
some degree of satisifaction from belonging to and participating in the group. Members of group
consistently influence and influenced by others.
Q-2 Types of Group?
Ans:-A Group may be a

▪ Formal Group:- It is created by management to meet certain official requirements.
▪ Informal Group:-It is created due to operation of social and psychological factors at the workplace.
Q-3 What are the Characteristics of Groups?
Ans:- The characteristics of a Group are –
➢ Group Goals: Every Group has a certain objective to be achieved

➢ Group Structure: Every Group has a certain structure. It is based on the roles to be performed by the
persons in a group
➢ Group Patterns of Communication – Group has a manner in which communication is done
➢ Group Norms: They are the rules of interaction in a group.
➢ Group Climate: It is the emotional atmosphere of a group based on bonding and trust among
members and participative spirit.
Q-4 What is Group Dynamics?
Ans:-Meaning of Group Dynamics

▪ Group Dynamics refers to the study of forces operating within a group.
▪ It deals with internal nature of a group, its structure, formation and processes.
▪ Group Dynamics refers to the continuously changing and adjusting relationships among members
of the Group.
▪ The core of Group Dynamics is interaction among members.
Q-5 What are the Characteristics of Group Personality?
Ans:- Every group has certain personality, The Characteristics of Group Personality are as follows:-
➢ Spirit of Conformity:-Individual members soon realize that in order to gain recognition, admiration
and respect from others, they have to achieve a spirit of conformity.
➢ Respect for Group Values:-Every Group has certain values which makes it different from other groups.
In order to deal effectively with a group we must understand its values.
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➢ Resistance to Change:-Generally, a Group does not accept social changes kindly. However, the
Group may bring about its own changes, whether by the influence of its leader or by mutual
agreement among Group members. This resistance of group shows its personality.
➢ Group Prejudice:-Groups have their own clearly evident prejudices in relation to race, religion,
nationality, etc.
➢ Collective Power:-Groups are always more powerful than individuals. Example labor union as
compared to an employee.
Q-6 Explain the Types of Groups in a organization.
Ans:- The types of groups are as follows:-
➢ Self Directed Teams:-These are independent and autonomous groups of employees who can take
decision themselves.
➢ Quality Circles:-Quality Circle is a group of workers from the same area who regularly meet and solve
work related problems, investigate causes, recommend solutions and take corrective actions in order
to improve productivity and work life in an organization.
➢ Committees:-A committee is a group of people officially delegated to perform a function such as

investigating, reporting or acting on a matter. It can be
✓ Adhoc:- This committee is setup for a particular purpose and after the goal is achieved, it is
dissolved.
✓ Advisory:-It comprises of experts in particular fields
✓ standing committee:-This is permanent in nature and highly empowered.
➢ Task Force:-Task Force is like a Committee but it is usually temporary. It is made up of a group of
people with different backgrounds who are assigned a specific task.
3.2 TEAM ROLES
Q-7 Explain Team Roles.
Ans:-Each member of a Team plays different types of roles, which are discussed below:-
➢ Self Oriented Roles – Members who assume self-oriented roles are motivated mainly to fulfill personal
needs. This types of members are less productive than other members
➢ Team Maintenance Roles – to help everyone work together purposefully.
➢ Task Facilitating Roles – to help solve problems and make decisions.
Q-8 Explain Leadership and its need.
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Ans:-A Leader is a person who influences the actions of others in a group so that objectives can be
achieved.
N e e d : - Effective Leadership is required for the following purposes

✓ to establish a co-operative climate that encourages group interaction;
✓ to help the discussion to proceed smoothly; and
✓ to keep the planned agenda on track
3.3 GROUPTHINK
Q-9 What is Groupthink?
Ans:-It is the tendency of group members to seek agreement solely for agreements sake. Rather than
critically evaluating information, the group members begin to form quick opinions that match the group.
It is a weakness of group decision making. A group lacks Creativity and fails to explore alternative solutions.
Q-10 How to Overcome Groupthink?
Ans:- Some measures to reduce Groupthink are
➢ Open Discussion:-Open discussion should be encoarged and each member should play the role of
critical evaluator.
➢ Division:-Groups should be divided into sub groups with similar tasks for new ideas.
➢ Discussion with Outsiders:-Discuss group's decision with outsiders and obtain their viewpoints.
➢ Meetings:-Special meetings should be held where nail doubts, objection of members should be heard
and then final decision should be taken
3.4 GROUP CONFLICT
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Q-11 What is Group Conflict?
Ans:-Conflict is a disagreement between two or more parties who perceive that they have incompatible
concerns. It can be defined as “an expressed struggle between atleast two independent parties who
perceive incompatible goals, scarce resources and interference from the other party in achieving their
goals.”
There are two aspects in relation to conflict

▪ Expression: The two sides must communicate / express about the problem for there to be conflict.
▪ Perception:- Conflict involves perceptions, i.e. the two sides may only perceive that their goals,
resources, and interference are incompatible with each others.
Conflict as Group Interaction

▪ Conflict is a sign that people are actively discussing issues.
▪ Conflicts are essential to a Group's existence. If a Group does not exhibit conflict by debating ideas
or questioning others, there is very little reason for it to exist.
▪ Members and Leaders must be diligent in re-focusing member's attention on the issues, and not
on personalities.
Q-12 What are the problems that typically arise in conflict situations?
Ans:-Researchers have identified the following problems that typically arise in conflict situations
➢ Avoidance:-The parties will simply avoid the conflict. This can be damaging, because it can lead to
greater problems in the future. It is always good that the individuals discuss their differences, and sort
out their problems.
➢ Blame Game:-Individuals involved in conflict may blame the other individual. Often, individuals go
beyond the specific behavior in question and blame, the character of the person.
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➢ Win – Lose Mentality:-Adopting a Wm – Lose Mentality in the course of conflict management, will
strain the relationship among groups and members. Focusing on each individual's goals / outcomes
will help avoid using a win – lose strategy.
Q-13 Explain about Handling or Managing Group Conflicts.
Ans:--Successfully managed conflicts can be constructive and can strengthen relationships in an

organisation. For this purpose, it is essential to plan communication to foster a supportive climate, marked
by emphasis on –
▪ Presenting ideas or opinions.
▪ Problem orientation - focusing attention on the tasks than individuals.
▪ Spontaneity - communicating openly and honesty.
▪ Empathy - understanding another person's thoughts and viewpoints.
▪ Equality - asking for opinions and ideas.
▪ Willingness - to listen to the ideas of others.
3.5 CONSENSUS BUILDING
Q-14 What is Consensus Building? What are its features?
Ans:-Consensus means overwhelming agreement. It is the process of agreeing the parties for majority
acceptance.
Features:-
▪ The key indicator of whether or not a Consensus has been reached, is that everyone agrees with
the final proposal.
▪ Consensus should be the product of a good-faith effort to meet the interests of all Stakeholders.
▪ Consensus requires that someone frame a proposal after listening carefully to /everyone's
interests.
Q-15 What are the Requirements for effective Consensus Building?
Ans:- Effective Consensus Building requires the following:-
➢ Problem-Solving Orientation:-The parties should be constructive and maintain a problem – solving –

orientation, even in the face of strong differences and personal antagonism.
➢ Active Listening:-Participants in any ConsensusBuilding process should be encouraged / instructed,

to engage in Active Listening.
➢ Purposive Arguments:-Participants in any ConsensusBuilding process should be encouraged to

engage in purposive arguments, i.e. "disagree without being disagreeable."
➢ Transparency:-To the extent possible, Consensus Building processes should be transparent.
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➢ Mutual Gain:-The goals of a Consensus Building process should be the gain of both parties.
3.6 NEGOTIATION
Q-16 Explain Negotiation.
Ans:-Negotiation is a technique of discussing issues among one selves, and reaching to a conclusion benefiting
all involved in the discussion. It is one of the most effective ways to avoid conflicts and tensions.
Q-17 What are the Approaches to Negotiation?
Ans:-The approaches to negotiation are as follows:-

➢ Win – Lose Orientation:- This orientation is based on the assumption that only one party can reach
its goals (i.e., win), and that any victory by that party will be matched by the other's loss.
✓ Adopted by:-Competitive Communicators
✓ Winner & Losers:-This approach produces Losers as well as Winners. One party “wins”, and
the other “loses”.
➢ Lose-Lose Orientation:- In this orientation, a conflict plays out in a way that damages both parties
to such a degree that everyone feels like a Loser.
✓ Adopted by:-Ineffective Communicators
✓ Winner & Losers:-This approach produces only Losers, and no Winners
➢ Compromise:- In certain situations, it may be better for the parties to agree for a reduced benefit,
i.e., to compromise, than to fight battles in a competitive manner and risk a Lose – Lose outcome.
✓ Adopted by:-Compromising communicators
✓ Winners & Losers:-This approach produces only Winners, and no Losers.
➢ Win – Win Orientation:- A win – win approach is a collaborative approach to negotiation and
assumes that solutions can be reached that satisfy the needs of all the parties.
✓ Adopted by:-Effective communicators
✓ Winners & Losers:-This approach produces only Winners, and no Losers.
Q-18 Basic Rules of Negotiation.
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➢ Analyze the interest of parties:-this is important to understand the pereptions, the style of
negotiation, and the interests and princliples of the counterparts, as well as one’s own.
➢ Planning:-Plan the negotiation, and determine –

▪ What are the expectations from the Negotiation?
▪ What are the terms of the Negotiation?
▪ What are the non-negotiable terms?
▪ What is the minimum that an agreement can be reached on?
➢ Technique Selection:-Select the appropriate Negotiation Technique

▪ Spiraling Agreement: Begin by reaching a minimum agreement, even though it is not related to, the
objectives, and build, bit by bit, on this first agreement.
▪ Changing of Position: Formulate the proposals in a different way, without changing the final result.
▪ Gathering Information: Ask for information from the other party to clarify his position.
▪ Alternative Options: Offer alternatives that may be agreeable to the other party, without changing
the terms.
➢ Negotiate:- Be sensitive and quick to adapt to changing situations, but do not lose soght of the
objective. Some aspects that could interfere with the negotiation are:-
✓ Personal positions and Interests
✓ Pyschological and emotional aspects of the persons
✓ Difficulties in Communication
Q-19 Explain Negotiation Process.
Ans:-The steps in the Negotiation Process are –
➢ Preparing:-Proper preparation for Negotiation is a must. Preparation serves two broad purposes
▪ Clarity of Objective: The boundaries within which one has to negotiate for, one's position on the issue
and the extent of compromise one would be ready for, should be ascertained through a "Like – Intend –
Must" (L.I.M.) analysis
Like Intend Must

Interests that one would like to Interests that one intends to get Interests that must be served.
get served. Achieving some of served. One is sincerely trying to Achieving these interests is
these interests is a happy get these interests served. The critical otherwise the
situation. results of the negotiations would negotiation could be frutiless.
be considered satisfactory if
these interests were served.
▪ Data Management: It is useful to create a checklist for preparation, as some items have to be
considered before the negotiation, some during the negotiation, some both before and during
negotiation.
➢ Arguing:-This is the first stage of the actual negotiation process, where the two parties are engaged
in the process of building a case for their respective stands.
The aim of this process is to forcefully inform the other party of the logic & strength of one's stand.
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➢ Signaling:-This phase occurs during the arguing process and usually after some amount of
argument. The Signal refers to verbal or non-verbal clues that open up the possibility of adjustment
in-the stance of the person.
➢ Proposing:-In this one party pro-poses for a possible solution. Propositions overcome arguments,
because arguments cannot be negotiated.
➢ Packaging:-This involves considering various proposals that appeared and collating an overall
suggested solution for consideration of the other party.
➢ Bargaining:-Negotiating looks like a bargain to a third person as a spectator. But for a Negotiator, this
phase will be successful only if the groundwork has been done.
➢ Closing and Agreeing:-Closing means ending the bargaining and reaching a stage where we push the
opponent to make a decision on agreeing or otherwise.
Agreeing refers to our response to the opponents close.
3.7 INFLUENCE & PERSUASION
Q-20 What is "Influence" or "Influencing Skills"?
Ans:-Influence is a respectable way to change other people's actions. When one does not have or wish
to use position power, one has to rely on influencing others through assertiveness, negotiation and
empowering skills.
Q-21 What are the charcteristics of "Influence"?
Ans:-The characteristics of Influence are as follows:

✓ It is a process, not action.
✓ A set of skills including body language, listening, building rapport, planning and explaining.
✓ A set of attitudes including confidence, trust and patience and belief in win-win outcomes.
✓ It is getting people to do things because they want to
✓ It requires one to be better focused rather than self focused.
✓ It enables proactive leadership.
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Q-22 What is "Persuasics" or "Persuasion Skills"?
Ans:-Persuasion is one dimension of influence. Persuasion is a direct communication when benefits are
stated in a reasoned arguments and competent views dealt with, in a respectful manner.
Q-23 What are the principles of "Persuasion"?
Ans:- Two principles of persuasion are as follows:-
Honour and respect:- These are communicated in various ways, you can respect people’s time by being
sensitive about the timing of your communication.
Understanding the other Person’s Frame of reference:-Each of us have a unique personality but one
can get to know a great deal about the other person by approaching things from their point of
reference, asking questions and listening.
Q-24 What are the Techniques in maintaining the Listener's attention in

an effective influence / persuasion process?
Ans:- Techniques in maintaining the Listener's attention in an effective influence / persuasion process are
as follows:-
➢ Hook the Listener(s):-When the Listeners are probably thinking about something else and the Speaker
wants to communicate with them, then he needs to hook the listeners away from their current line
of thought to focus on his idea.
➢ Retain the Listeners to listening:-This can be achieved through a statement or a group of statements
or a question that creates curiosity.
➢ Use Emotional Word Pictures (EWP):-Communicate with a person's mind and heart, to convey
understanding and emotional feelings. The speaker must know the two biggest motivators:- (i) Desire
for gain and (ii) Fear of Loss.
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PAST YEAR QUESTIONS

NOV-2013
1. Describe the characteristics of “Groups” in a business Organization.
NOV-2012
2. State the types of groups in an organization which play an important role in solving the difficult
problems in an organization.
NOV-2011
3. What are the features of groups in an organization?
MAY-2011
4. What are the characteristics of group personality?
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5. Explain the concept of Negotiation What are its techniques
MAY-2008
6. What is meant by negotiation? Name the various steps which can be identified in the process of
negotiation from start to the completion of the process.
MAY-2007
7. What do you understand by group dynamics?
8. What do you understand by Group conflicts? How shall these be managed effectively?
Chapter COMMUNICATION
4 ETHICS
4.1 ETHICAL COMMUNICATION
Q-1 What are the features of Ethical Communication?
Ans:-Features of Ethical Communication are as follows:-

▪ Includes all relevant information.
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▪ Is true in every sense and is not deceptive in any way.

▪ Is accurate and sincere.
▪ Portrays graphic data fairly.
▪ Conveys the right information, at the right time.
Q-2 Explain the Importance/significance of Ethical Communication.
Ans:- The significance of Ethical Communication are as follows:-
➢ Primacy: Ethical Communication is fundamental to responsible thinking, decision making, and the
development of relationships.
➢ Survival & Growth: Ethical Communication helps in achieving the basic business objective of creating
consumer preference for products and services, and minimizing the impact, a crisis can have on a
Company's financial position and business prospects.
➢ Dignity: Ethical Communication increases human worth and dignity by promoting truthfulness,
fairness, responsibility, personal integrity, and respect for self and others, while unethical
communication threatens the quality of all communication and consequently the wellbeing of
individuals and the society.
➢ Corporate Image: Ethical Communication is a must to create, maintain and improve corporate
reputation.
➢ Shareholder Value: Ethical Communication promotes long – term business success and profit. Thus,
it enhances shareholder value.
➢ Quality of People: Ethical Communication is a must for attracting, retaining and motivating high
quality people. Competent people are likely to search for organizations which maintain high ethical
standards.
Q-3 What are the Factors influencing Ethical Communication?
Ans:- The Factors influencing Ethical Communication are as follows:-
➢ Speaking:-In a message, the Sender chooses to disclose information, motives, or feelings to others.
This choice involves an ethical element since some messages should not be sent, e.g. confidential
information, those involving 'Insider Information', etc.
➢ Listening:-Even choosing to listen means taking a moral stand. Mere hearing (rather than listening)
may constitute unethical behavior.
➢ Remaining Silent:-Remaining silent might seem like the safest way to avoid ethical dilemmas.
However, remaining silent in the face of unlawful behavior or a potentially harmful situation presents
a serious ethical decision
➢ Context:-The ethical nature of Communication should be considered within the context of "who",
"what", "when", and "where".
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4.2 ORGANIZATION VALUES
Q-4 Explain Organizational Values.
Ans:-A key element in any communication activity is the values of the organization. Values are
the principles and ideas that people or organizations strongly believe in and consider important.
When people ar in doubt about decisions, theyfrequently rely on deep-seated va;lues to Make
the right choice. In orgnizations, reliance on shared values makes setting goals easier in the face
of the competiting ideas, desires and objectives of individual employees.
One can get a good idea about the values of organization by examining its vision and mission
statement. These statements are short descriptions of the purpose of organizations and the
directions they try to take to achieve success.
4.3 ETHICAL DILEMMAS
Q-5 What are the Ethical Dilemmas in Communication?
Ans:- The Ethical Dilemmas in communication are as follows:-
➢ Secrecy
▪ Secrets are kept for both honourable and dishonourable reasons.
▪ The Manager must determine when secrets are justifiable and when they are not.
▪ Too much of secrecy leads to lack of innovation. However, organizations have a genuine need to
protect certain privileged information from competitors, etc.
➢ Needless Whistle – Blowing

▪ Any employee who goes public with information about corporate abuses or negligence is known
as a Whistle-Blower.
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▪ The Society has a right to know about corporate practices that are potentially hazardous, but
courting the Whistle – Blower too aggressively can create problems.
➢ Leaks
▪ A Leak is anonymous whistle-blowing. The person who leaks information cannot be cross-
examined, thus casting a doubt on the credibility of the claim.
▪ Employees may leak information to the press for honorable or dishonorable reasons.
▪ Leaks may cause organizational plans to be altered or foregone altogether.
➢ Lying
▪ A lie is a false statement intended to deceive.
▪ Lying breaks down trust between individuals, shaking the foundation of Ethical Communication.
➢ Euphemisms
▪ Euphemism is using a less offensive expression instead of one that might cause distress.
However, frequently people may use euphemisms to hide the truth.
Q-6 What are the Guidelines to handle Communication Ethics

Dilemmas?
Ans:- The guidelines to handle communication dilemmas are discussed below:-

➢ Legal Considerations:-One place to look guidance the law. If saying or writing something is clearly
illegal, you have no dilemma: You obey the law
➢ Moral Considerations:-Although legal considerations will resolve some ethical question, one has
often had to rely on your own judgement and principles. If your intent is honest, the statement is
ethical, even though it may be factually incorrect, but if your intent is to mislead or manipulate the
audience, the message is unethical, regardless of whether is true.
➢ Maintain condour:-Candour refers to truthfulness, honesty, and frankness in your communication

with other people. Although revealing everything you know about a situation may not always be
appropriate
➢ Keep Messages – Accurate:-When you are relaying information from one source to another,
communication the original message as accurately as possible. Ethical communicators do not take
liberties with the massages they pass on.
➢ Avoid Deception:-Ethical communicators are always vigilant in their quest to avoid deception.
➢ Behave consistently:-One of the most prevalent yet noticeable areas of unethical behavior is
communication one thing and doing another you most always monitor your behavior to ensure that
it matches what you say to others
➢ Keep Confidences:-When someone tells you something and expects you not to divulge that
information to others a sacred trust has been placed on you
➢ Ensure Timeliness of Communication:-The timing of messages can be critical. When you delay sending
messages so that others do not fully benefit, they can (rightly) assume that you have acted unethically.
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4.4 NCA CREDO
Q-7 What is NCA's Credo for Ethical Communication?
Ans:-The National Communication Association (NCA) states "ethical communication enhances human
worth and dignity by promoting truthfulness, fairness, responsibility, personal integrity, and respect
for self and other
▪ Truthfulness, accuracy, honesty, and reason are essential to the integrity of communication.
▪ Endorse freedom of expression. Diversity of perspective, and tolerance of dissent to achieve the
informed and responsible decision making fundamental to a society
▪ Strive to understand and respect other communicators before evaluating and responding to their
messages
▪ Access to communication resources and opportunities are necessary to fulfill human potential and
contribute to the well being of families, communities and society.
▪ Promote communication climates of caring and mutual understanding that respect the unique
needs and characteristic of individual communicators.
PAST YEAR QUESTIONS

MAY-2013
1. State Suggested Guidelines to handle communication ethics dilemmas.
MAY-2012
2. In what way is the 'Ethical Communication' advantageous to a business establishment? Explain.
NOV-2011
3. What do you understand by ethical communication what are its elements?
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Chapter COMMUNICATING CORPORATE

5 CULTURE, CHANGE &
INNOVATIVE SPIRITS
5.1 CORPORATE CULTURE
Q-1 What is Corporate culture?
Ans:-Corporate Culture is described as the personality or way of work of an organization, i.e., how things
are done around in an organization. It guides the way employees think, act, and feel.
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Corporate Culture is a broad term used to define the unique personality or character of an organization,
and includes such elements as core values and beliefs, corporate ethics, and rules of behavior norms that
are shared by people and groups in an organization and that control the way they interact with each other
and with stakeholders outside the organization.
Strong and Weak Cultures:-A Strong Culture is said to exist where the staff’s response to change and
innovation is high and vice – versa otherwise.
Evolution of Corporate Culture:-It is the responsibility of senior management to develop a corporate

culture which employees should follow.
Q-2 What are the Elements of Corporate Culture?
Ans:- The Elements of Corporate Culture are as follows:-
➢ The Paradigm: What the organization is about, what it does, its mission, its values.
➢ Control Systems: The processes which have been put in place to monitor what is going on.
➢ Organizational Structures: Reporting lines, superior – subordinate relationships, managerial

hierarchies, and the way that work flows through the business.
➢ Power Structures: Who makes the decisions and how power is distributed across the organisation.
➢ Symbols: (i) Corporate Logos and Designs, and (ii) Symbols of

power, e.g., car parking spaces, executive washrooms, etc.
➢ Rituals and Routines: Management Meetings, Board Reports, etc, which may be habitual or
necessary.
➢ Stories and Myths: The build up about people and events, and convey a message about what is valued
within the organization.
5.2 ORGANIZATION WIDE CHANGE
Q-3 What is Organization Wide Change?
Ans:-Organization – wide Change is a substantial change in the organization which effects the entire
working of an organization. Examples of Organization-wide Change are –
✓ change in mission,
✓ use of new technologies,
✓ mergers, acquisitions and major collaborations
✓ New Programs ex. TQM,
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Basically, It is a fundamentak and radical reorientation in the way the organization operates.
Q-4 What are the Reasons for employees to resist Organization – wide
Change?
Ans:-The reasons for employees to resent / resist Organisation – wide Change, can be summarized as
follows
➢ Uncertainty: When people are faced with uncertain situations, where they feel they do not know what
to expect, they will resist moving into those situations.
➢ Insecurity: People resist change due to the potential for loss of the following on a personal level :
✓ Security,
✓ Friends and Contacts
✓ Money,
✓ Freedom
✓ Pride and Satisfacion
✓ Responsibility ,
✓ Authority,
✓ Status
➢ Others: Other factor that can influence people into resisting any change include the following
✓ Change not needed - status quo is working fine
✓ Proposed change does more harm than good,
✓ Lack of respect for person responsible for the change,
✓ Negative attitude towards the organization before the change,
Q-5 What are the Reasons for employees may accept Organization – -
wide Change?
Ans:-The Reasons why employees may accept Organization – wide Change.

➢ Personal Gain: Possibility of gain in areas like –
✓ Increased Security,
✓ Money,
✓ More Authority,
✓ Status/Prestige,
✓ Better Working Conditions,
✓ Self-Satisfaction,
✓ Less Time and Effort.
➢ Other Factors
✓ Creation of new challenge,
✓ Liking/Respect for the source of Change,
✓ Liking the way change is being communication,
✓ Reduction of boredom,
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Q-6 What are the disadvantages of Communication or Lack of

Communication of Organization – wide Change?
Ans:-Communication or Lack of Communication of Organisation – wide Change has the following

disadvantages
▪ Reduction in employees' commitment to the organization. Irrevocable damage to employee
morale.
▪ Creation of huge resistance to change.
▪ Hostility, enmity and stress in relationships between Management and Workers.
▪ Performance problems, go – slow tactics, etc.
Q-7 What are the Guidelines for Effective Communication in dealing with
Organisation – wide Change?
Ans:-The Guidelines for Effective Communication in dealing with Organisation – wide Change are as follows:-
➢ Top Management Initiative:-Successful change must involve the Top Management, including the
Board of Directors and Chief Executive.
➢ Change Manager:-One person example Change Manager should be appointed who should take the
responsibility of change. The Change Manager should meet all Managers and Staff and explain the
reasons for change, how it generally will be carried out.
➢ Structure:-To sustain change, the structures of the organization itself should be modified, including
strategic plans, policies and procedures.
➢ Plans:-A plan should be developed and communicated. Plans do change, so it is necessary to

continuously communicate changes and its reasons.
➢ Continuity:-The potential need for change, the actions taken and the results obtained should be
widely communicated, on a frequent and continuous basis.
➢ Feedback:-Maximum possible feedback should be obtained from the employees. Their problems and
perceptions should be heard and steps taken to resolve them. If possible, work with a team of
employees to manage the change.
Q-8 Who, What, When & How To Communicate?
Ans:-The following are the special issues that Managers must analyze during communication in change
situations
➢ To Whom to Communicate:-Communication should take place directly between the Manager

and Employees.
➢ What to Communicate:-In change situations, it is good to communicate as much information as

available about the change. However, judgment will have to be exercised in respect of confidential
information, and information which is based on speculation or rumour
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➢ When to Communicate:-Communication about change should be done as early as possible.

Communication should occur before change
➢ How to Communicate:-Communication can be in oral or in writing depending upon the importance

of information.
5.3 INNOVATION
Q-9 What is Innovation? Explain its need.
Ans:-Innovation is what drives growth and innovation is achieved by remarkable people with a shared
passion for problem solving and for turning ideas into realities through preservance and a positive
attitude. Company that continuously innovate will create and re-invent new markets, products and
services which lead to more growth.
The process of translating an idea or invention into a good or service that creates value or for which
customers will pay is called innovation.
Q-10 What are the Key elements in the Sustainable Organization?
Ans:-A sustainable organization should have:-

✓ Vision and strategy for innovation
✓ Culture Supporting innovation
✓ Processes, practices and systems supporting innovation
✓ Top management team leading innovation.
✓ Empowered employees driving innovation.
Q-11 What are the Key elements in the Innovation Framework?
Ans:-Key elements in the Innovation Framework
93 CA ANKIT OBEROI
➢ Accessibility:-Every concerned person, i.e. Management and Workers, should actively participate in
the innovation work process.
➢ Recognition and Rewards:-Companies should appreciate innovators, through financial rewards as

well as personal recognition. Innovators can be recognized in Company newsletters, trade
publications, and the local media and this also shows others what the Company really values.
➢ Special Encouragement Programs:-Special programs that encourage innovation can be developed,

e.g., allowing employees to take time off, to work in a new environment or teach in a college, etc. By
placing employees in different environments, they can meet new people, come across new idea.
➢ Informal Communication:-Managers can keep up – to – date by informally communicating with

employees about projects or new ideas. This proves more informative than paperwork.
94 CA ANKIT OBEROI
PAST YEAR QUESTIONS

MAY-2013
1. Discuss various elements that can be used to describe or influence organizational culture.
NOV-2012
2. State the reasons for accepting the change in the present of management set – up of the corporate
culture in a business organization.
NOV-2010
3. State the reasons for acceptance of change in as organization
95 CA ANKIT OBEROI
Chapter COMMUNICATING IN
6 BUSINESS ENVIRONMENT
6.1 CONTENTS OF THE ANNUAL REPORT
Ans:-Following is the content of annual report
▪ General Company Information.
▪ Mission Statement,
▪ Board of Directors.
▪ Organization Structure.
▪ Technology in use.
▪ Details of International Operations.
▪ Corporate Social Responsibility Report.
▪ Chairman's Letter / Speech.
▪ Directors' Report & Responsibility Statements.
▪ Independent and Consolidated Financial Data, along with Graphs & Pie Diagrams 10 year highlights
▪ Corporate Governance Report.
▪ Auditors' Report.
▪ Balance Sheet.
▪ Profit and Loss Account.
▪ Cash Flow Statement.
▪ Notes forming part of accounts.
▪ Information on Subsidiary Companies
▪ Auditors' Report on Consolidated Financial
▪ Statement.
▪ Consolidated Balance Sheet.
▪ Consolidated Profit and Loss Account.
▪ Consolidated Cash Flow Statement.
▪ Notes forming part of Consolidated Accounts.
▪ Comprehensive Ratio Analysis.
▪ Other Statutory Disclosures under the Companies Act, 1956.
6.2 NOTICE OF AGM.
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Answer:-
Notice is hereby given that 5th Annual General Meeting of ABC Ltd. Will be held on Friday the 30th day of
September 2013, at the Registered office of the Company at plot No. 123, Preet Vihar, Delhi – 110092 at
10am to transact the following business.
Ordinary Business
▪ To receive, consider and adopt the Audited balance sheet of the Company as on 31 st March 2013
and the profit and loss account for the year ended on that date and Auditors and Director's
Reports.
▪ To declare dividend for the year ending 31st March 2013
▪ To appoint a director in place of Mr. A who retire by rotation & being eligible offers himself for
reappointment.
▪ To appointment the auditor for the year ended 31st march 2014. The present auditor of the
company M/S XYZ Associates who retire at this AGM are eligible for reappointment.
Special Business
▪ To consider and, if thought fit to pass with or without modification the following resolution as a
SR "RESOLVED that pursuant to Section 17 of the Companies Act, 1956 & other applicable provision
(if any) the object clause of the MOA of the Company be altered.
Place: Reg. office For & on Behalf of BOD

Date: 1st September
Chairman
Notes:
▪ A member entitled to attend & Vote is entitled to appoint a proxy to attend & Vote instead himself
& proxy need not be member of the Company
▪ Explanatory statement relating to special business is annexed with the notice.
6.3 NOTICE OF EGM
Ans:-
Notice is hereby given that Extra Ordinary General Meeting of ABC Ltd. Will be held on Friday the 30th day
of September 2013, at the Registered office of the Company at plot No. 123, Preet Vihar, Delhi 110092 at
10am to transact the following business:
Special Business:-
▪ To consider and, if thought fit to pass with or without modification the following resolution as
a SR "RESOLVED that pursuant to Section 17 of the Companies Act, 1956 & other applicable
provisions (if any) the object clause of the MOA of the Company be altered.
▪ To consider and, if thought fit to pass with or without modification the following resolution as a
SR "RESOLVED that pursuant to Section 77A of the Companies Act, 1956 & other applicable
provisions 15% equity shares of the company are to be bought back.

Date: 1st September
Chairman
Notes:
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& proxy need not be member of the Company.
▪ Explanatory statement relating to special business is annexed with the notice.
6.5 NOTICE OF CLASS MEETING
Ans:-
Notice is hereby given that class meeting of ABC Ltd. will be held on Friday the 30th day of September
2013, at the Registered office of the Company at plot No. 123, Preet Vihar, Delhi - 110092 to transact the
following business.
▪ To discuss on the voting rights of the preference shareholders since dividends is in arrears from
the last 2 consecutive year.
▪ To alter the rate of dividend of the PSH from 13% to 10%.

Date: 1st September
Chairman
Notes:
& proxy need not be member of the Company.
6.6 NOTICE OF BOARD MEETING
Ans:-
Notice is hereby given that Board Meeting of ABC Ltd. Will be held on Friday the 30th day of September
2013, at the Registered office of the Company at plot No. 123 Preet Vihar, Delhi 110092 to transact the
following business.
▪ To discuss on the functioning of the company.
▪ To approve the minutes of previous board Meeting
▪ To approve the transfer of shares & debentures
▪ To propose the dividend for the year ended 31st March 2013.
▪ To buyback 10% ESC of the Company
▪ To shift the Registered office of the Company within the city.

Date: 1st September K
Chairman
6.7 MINUTES OF AGM.
Ans:-
Minutes of 5th AGM of the Company held at the Reg, office of the company.
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Place: Registered Office, Plot 123, Preet Vihar, Delhi -92

Date:- 30th September 2013 .
Time:- 10:00 am
Present
1. Mr. k chairman
2. Mr. XYZ Directors present
3. Mr. Q auditor of the Co
4. 150 member & 50 proxy resent
1. Notice
The Notice of the meeting was read by the secretary of the Co.
2. Director's Report and Accounts

With the consent of the member present the director's Report and accounts having already been
circulated to the members were taken as read.
3. Auditors Report
The Auditors Report was read
4. Adoption of Directors Report etc.

The chairman then invited queries from the members present on directors report, Accounts &
Auditors Report but there was no query. Thereafter the chairman proposed the following resolution
seconded by X director
"Resolved that director reports, Audited Balance sheet as on 31 st march 2013, profit & loss Account
for the year ended 31 st March 2013 & the Auditors Report are hereby received considered &
adopted" carried unanimously
5. Dividend :-
Proposed by Shri……………..
seconded by Shri………
"Resolved that dividend for the year ended 31 st March, 2013 as proposed by BOD at Rs. 2 per share
to those member where names appear in the ROM as on 25th march is hereby declared Carried
unanimously
6. Director:-
Proposed by………….
seconded by………….
"Resolved that ………, Who retire by rotation & is eligible for reappointment is hereby reappointed as
director of the company" carried unanimously.
7. Auditor:-
Proposed by…………….
seconded by…………….
"Resolved that MIS XYZ & Associates Chartered Accountant who retire at his AGM & are eligible for
reappointment is hereby reappointed as auditor for 2013-2014 carried unanimously
8. Votes of Thanks:- Meeting closed with the votes of thanks to the chairman
99 CA ANKIT OBEROI
Place: Reg. Office

Date: 10th Oct.
Chairman
6. 8 MINUTES OF STATUTORY MEETING
Ans:-
Minutes of SM of the Company held at the Reg., office of the company.
Place: Registered Office, Plot 123, Preet Vihar, Delhi -92

Date:- 30th September 2013 .
Time:- 10:00 am
Present
3. Mr. k chairman
4. Mr. XYZ Directors present
3. Mr. Q auditor of the Co
4. 150 member & 50 proxy resent
Notice
The Notice of the meeting was read by the secretary of the Co.
Director's Report and Accounts

With the consent of the member present the statutory report having already been circulated to the
members were taken as read. The chairman then invited queries from the members present on Statutory
Report but there was no query. Thereafter the chairman proposed the following resolution seconded by
X director
"Resolved that Statutory Report are hereby received considered & adopted" carried unanimously
Votes of Thanks:- Meeting closed with the votes of thanks to the chairman
Place: Reg. Office From behalf of BOD

Date: 10th Oct.
Chairman
6.9 CIRCULAR ON PUNCTUALITY
ABC Electronics Ltd.

Cannaught Place, New Delhi
Circular No. Date…………….
To all employees
Recent Surprise checks have received that there is considerable late coming and in some cases, even the
standard instructions for ensuring Punctual attendance are not followed. All employees are requested to
100 CA ANKIT OBEROI

strictly adhere to the arrival, departure and luch timing of the office. Tendency to move around in the
corridors and canteen would also be viewed seriously.
Cooperation of all employees is solicited.

Sd/-
A.B. Kumar
Manager-H.R.
6.10 PRESS RELEASE
6.10.1 Guidelines for drafting a Press release
The term Press release in its narrower sense is use for releases covering news. The press release
contains worthwhile material which has some news value.
The press release should be written in a journalistic style. It should provide facts or information of
interest to the readers and should attempt to cover all aspects of a specific subject. There should not be
any loose ends. It should be on a subject which is recent or in news. The release should not be generally
lengthy. It should be concise and to the point.
The introduction or lead should be in summary format as it is a news Story.
The releases should have a consistent format. Generally, the name of organization from where the
release emanates is given on the top. The date na dplace are indicated on the top right side. The
Release should have a title and a sub-title also, if necessary, it should have a suitable introductory
paragraph.
6.10.2 Press Communique
The Press Comunique are issued when some important government decisions or announcements are
made such as cabinet appointments, conclcusions of the foreign dignatries visits, international
agreements etc. The press communiqué is formal in character. It carries the name of ministry or
department and the place the date at the bottom left-handed corner of the release. Generally, the press
is expected to reproduce the press communiqué without any substantial change. No heading or Sub-
heading is given on Press Communique.
101 CA ANKIT OBEROI

PAST YEAR QUESTIONS

MAY-2014
1. Draft a notice for calling the meeting of the Board of Directors of a company. In this meeting following
transacions have to be proposed.
(i) Mr x to be co-opted as an Additional Director
(ii) Decision to be taken to buy-back company’s equity shares.
NOV-2013
2. The statutory meeting of ABC Limited was held on 20 th January 2012 at the registered Office at New,
Delhi. Draft the minutes of the statutory meeting of the shareholders of the company.
3. Your company has achieved extra-ordinary performance during the year 2012-13 in the field of
‘helathcare’ by winning an export promotion award for exceeding the target of exports by 20%, launched
10 new life saving drugs and increases net profit by 30%. Draft a Press Release incorporating all these
details.
NOV-2010
4. MNP Limited was incorporated in September 2010. Now the company wants to hold its first meeting
of the board of director Draft a notice of the said meeting along with agenda.
MAY-2010
5. The statutory meeting of PQR Limited was held on 20th January, 2010 at its registered office at
Kolkata. As a secretary of the company, draft the minutes of the statutory meeting of the shareholders
of the company.
6. State the contents that are required for drafting an Annual Report of Company.
NOV-2009
7. TKR Limited wants to hold its statutory meeting on 20th December, 2009 to discuss the matters relating
to formation of the company and incidental matters thereto.
Draft a notice along with notes in brief for calling statutory meeting of the company
8. Fifth Annual General Meeting of the shareholders of Devrishi Limited was held on 20 th August, 2009 at
its registered office at Mumbai. 55 shareholders attended the meeting in person and 6 shareholders in
proxy. Several ordinary business regarding adoption of audited Balance Sheet, declaration of dividend
appointment and reappointment of directors and auditors were transacted at the meeting. Draft the
minutes of the Fifth Annual General Meeting of the Shareholders of Devrishi Limited
JUNE-2009
102 CA ANKIT OBEROI

9. Draft a circular for employees insisting on punctuality.
NOV-2008
10. As a secretary of AB forgoing Ltd. Draft a notice of a board of directors meeting to consider any five
as agenda of the meeting to be held on November 15, 2008 at the registered office of the company. At
Mysore.
11. ABC Ltd. Wants to hold its Annual General Meeting on 15th December 2008 to discuss the matters
relating to ordinary business. Draft a notice along with noted in brief for calling annual general meeting of
its shareholders
MAY-2008
12. Board of Directors of Prakesh Traders Pvt. Ltd. Proposes to convene an Extraordinary General Meeting
for changing the names of the company to prakesh International Pvt. Ltd. Draft the notice for calling the
extraordinary general meeting of the members
13. Draft a notice for calling the board of directors meeting of M/S MN Ltd. Where Mr. RS is co- opted as
an additional director and also buy back of the company equity share to an extent of 10% of issued share
capital.
MAY-2007
14. Draft a notice for ABC's Annual General Meeting with four ordinary business.
103 CA ANKIT OBEROI

Chapter INTRODUCTION TO LEGAL

7 DEEDS & DOCUMENTS
7.1 PARTNERSHIP DEED
7.1.1 Components of Partnership Deed
A written Agreement of Partnership is called Partnership Deed. A Partnership deed can be seen as
comprising of the following components
✓ Date of Execution
✓ Names of Partners
✓ Date of Commencement
✓ Name, business and duration of Partnership
✓ Place of Business
✓ Capital and Interest on capital
✓ Sharing of Profit/Losses
✓ Accounts including bank Accounts
✓ Borrowing Powers
✓ Arbitration
7.1.2 Format of Partnership Deed
This deed of partnership is made at …………….. on ……..day of ……………. 20.. between

Mr. … aged about .. years S/o ________ residing at ________ at Called 1st Party
Mr. … aged about .. years S/o ________ residing at ________ Called 2nd Party
Mr. … aged about .. Years S/o ________ residing at _______ Called 3rd Party
Witnessed as follows
The Parties aforementioned mutually agree that:-

▪ Partnership shall commence from 1st day of Oct, 2011 & shall continue at will
▪ Partnership shall be carried on for Importing laptops under the Name & style of XYZ Importers at
Nehru Palace Delhi
▪ The Profit and loss of the partnership shall be shared in equal ratios between all the parties.
▪ Partners shall bring a capital of Rs. 50 Iakh each & will be entitled to interest @6% p.a
104 CA ANKIT OBEROI

▪ Partners shall also be entitled to remuneration @Rs. 1, 00,000 each per annum
▪ Any dispute between the partners shall be referred to Arbitrator appointed by the partners.
▪ A partner shall not be allowed to carry on any other business individually or with the partnership
of the other.
In witness whereof the parties there to have signed this deed
Witness Signature
1…………………. First Party………………
2…………………. Second Party………….
3…………………. Third Party……………..
7.2 PARTNERSHIP RETIREMENT DEED
7.2.1 Format of Partnership Retirement Deed
This deed of retirement is made at …………….. on ……..day of ……………. 20.. between

The Parties aforementioned mutually agree to retire 1st party:-

✓ The first party will retire from the partnership on 30 th September 2011
✓ Firm is free to continue the business with all its assets and same firm name with the remaining
partners
✓ The accounts for the first party have been settled in accordance with the books of accounts of
Rs. 50 lakh and its has been paid.
✓ The first party authorizes the other party to recover the debts of the firm & to the sell the
property of the firm. first party releases his right from the firm including goodwill
✓ The Remaining partners also releases the retiring partner from the liability of the firm
Witness Signature
1…………………. First Party………………
3…………………. Third Party……………..
7.3 PARTNERSHIP DISSOLUTION DEED
105 CA ANKIT OBEROI

7.3.1 Format of Partnership Dissolution Deed
This deed of dissolution is made at …………….. on ……..day of ……………. 20.. between

The Parties aforementioned mutually agree that:-

✓ Partnership firm shall dissolve wef. 30th September 2011
✓ All the Assets & Liabilities of the Firm have been released resulting in a realization profit of Rs 1
crore.
✓ The Capital Accounts of the partners have been settled in full.
✓ Partners release each other from all obligations of the firm wef. 30th September 2011
Witness Signature
1…………………. First Party………………
3…………………. Third Party……………..
7.4 LEASE DEED
7.4.1 Meaning of Lease Deed
A lease is the transfer of enjoyment of immovable property by the lesser to the lessee in consideration of
a premium that means a price paid or promised on rent that may be periodical payment of money. In
order to constitute the valid lease, there must be a transfer of right to enjoyment of immovable property
through delivery of possession of the property. The Term of lease including the period of lease, amount
of rent etc. are contained in a leased agreement or deed duly executed and signed by both the lesser and
lessee.
7.4.2 Format of Lease Deed
This agreement for lease is made at Delhi 26 th day of September 2011 between
Mr. …. aged about .. years S/o _______ residing at ______ Called lessor
Mr. …. aged about .. years S/o _______ residing at ______ Called lessee
Whereas lessor is the Absolute owner of the property fully described in schedule annexed. Lessee is in
requirement of the property for commercial purpose approached lessor and lessor agreed to lease on the
terms as follows:-
Now these presents witnessed as follows
106 CA ANKIT OBEROI

✓ Lease shall commence from 1st Oct 2011 up to a period of 3 years and can be renewed on the
mutual agreement of the parties
✓ Lease Rental shall be Rs 1 lakh per month with an increment of 10% per annum. Lessee has also
submit Rs. 3 lakh with lessor as security deposits.
✓ Lessee shall pay Lease Rental on 1st of Every month
✓ Lessee shall use the property to run a departmental store
✓ Lessee shall be responsible to maintain, clean and repair the property however in case of major
repairs in the property it shall be responsibility of lessor
✓ Lessee shall not sublet the property to any other person
✓ Lessee shall not carry any illegal object in the property.
Witness Signature
1…………………. Lessor………………
2…………………. Lessee……………..
7.4.3 Schedule of Property
All the portion of immovable property consisting of residential Flat bearing No ……….., situated at
…………………………………………………………… measuring ……………………. Square feet, and bounded by –
On the East by: ……………………………………………
On the west by: …………………………………………..
On the South by: …………………………………………
On the North by: ………………………………………..
Market value of the property leased under this deed is Rs ………………………… only.
Witness Signature
1…………………. Lessor………………
2…………………. Lessee……………..
7.5 AFFIDAVIT
7.5.1 Meaning of Affidavit
An Affidavit is a written statement used mainly to support applications and in some circumstances as
evidence in court proceedings. A Person who makes an affidavit is called Deponent and must swear or
affirm that the contents are true before a person who has the authority to administer oaths in respects
of the particular kind of affidavit.
7.5.2 Format of Affidavit
I ……………………………………………. Son / wife / daughter of ………………………………….. aged about

……………………………….. years, residing at ……………………………………………… hereby declare on oath as follows
107 CA ANKIT OBEROI

…………………………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………………
………………..Sworn on this ………… day of ……………… 20..
Date………… Signature……………..
Place………..
7.6 INDEMNITY BOND
7.6.1 Meaning of Indemnity Bond
A contract of Indemnity as defined under Section 124 of the Indian Contract Act, 1872 is a contract by
which one party promises to save the other from loss cost to him by the contract of the promissory himself
or by the contract of any other Person. A person who gives the indemnity is called indemnifier and a
person for whom protection is given is called the indemnity holder.
7.6.2 Format of Indemnity Bond
I ……………..Son / wife / daughter of …………….. aged about ……….. years, residing at

……………………………………………… hereby declare on oath as follows
…………………………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………………
………………..
In consideration of the indemnity holder so doing, I hereby agree to indemnify the indemnity holder and
bind myself, my heirs and executors to pay all sums, cost, damages and expenses which the indemnity
holder may sustain, incur or be liable for in consequence of having followed my request.
This Indemnity bond is executed by me on ....... day of ....... 20 …. at .........
Witness Signature
1…………………. Indemnifier………………
2………………….
7.6.3 Indemnity Bond in case of non-receipt of Dividend Warrant
Mr. ……S/o………………..resident………………..do hereby agree to indemnify the XYZ Ltd for any loss that may
occur for seeking release of dividend for 150 shares of Rs. 1500.
I further declare that personally I have not received the dividend warrant in question.
Date: Signature
Place:
7.6.3 Indemnity Bond in case of non-receipt of Bonus Share Certificate
108 CA ANKIT OBEROI

Mr. …… S/o……….resident…………………..do hereby agree to indemnify the SVA Limited for any loss that
may occur for seeking release of Bonus Share Certificate in duplicate of 50 equity shares of Rs. 10 each
fully paid.
I further declare that personally I have not received the Bonus Share Certificate issued by the company
for which company is claiming that it has already been despatched.
Date: Signature
Place:
7.7 POWER OF ATTORNEY
7.7.1 Meaning of Power of Attorney
The law relating to power of attorney falls within the law of agency. A power of Attorney is a written
instrument empowering a specified person or persons to act for and in the name of the person executing
it. The Instrument of power of attorney are classified into the following two categories:-
Specific Power of attorney:-A specific power of attorney is given for a particular specific act, for instance,
for appearance before Tax authorities or before ROC for presenting documents for incorporation of a
company or before a sub-registrar for registration of documents etc.
General power of attorney:-It covers all the acts relating o the execution of the deed. Presenting the same
for registration, admitting execution thereof etc. can be executed and attested before a Notary Public or
a First Class Magistrate
7.7.2 Format of Power of Attorney
This Power of attorney is made on 7 th day of March 2013 on ND b/w –

A aged about ____________ S/o ___________ R/at ____________ herein called Principal
B aged about ____________ S/o ___________ R/at ____________ herein called Agent
The principal appoints G agent to handle his entire b/s of petrol pump Witnessed as follows
✓ Agency shall commence from 10th March 2013.
✓ Agent shall handle all the purchases & sale of inventory of PP
✓ Agent shall be responsible to pay all the taxes to appropriate authorities
✓ Agent shall handle the cases of PP
✓ Agent shall not appoint sub – agent
✓ All the above acts done by agent shall bind the principal
Witness Signature
1…………………. Principal………………
2…………………. Agent……………..
7.7.3 Power of Attorney authorizing CA to appear before IT Authority
109 CA ANKIT OBEROI

I/we……………residing at……………hereby authorize………..to represent me/my firm/my family in

connection with………….for the year……………His statement and explanation will be binding on me/us.
Place:
Date: Signature
I,………………… hereby declare that I am duly qualify to represent the above-mentioned person.
Place:
Date:
Signature of Power of Attorney Holder
7.7.4 Power of Attorney authorizing CA to appear before ROC
Before ROC:- We the subscribers of the Memorandum and Articles of Association of the proposed
company, hereby authorize to present the memorandum and Article of Association and other connected
documents for the registration of the said company before the ROC, Karnataka, Bangalore and to make
such corrections/Alterations/deletions/Additions as may be required to be done by the Registrar in the
documents and also to receive the Certificate of Incorporation.
General Power of Attorney:-Know we all men by their present we do hereby appoint and
constitute………………….son of…………….(herein after called “Chartered Accountant” who has subscribed
his signature hereunder in token of identification) presently residing………….to my lawful Chartered
Accountant in our name and on our behalf do it any one or all the following acts, deeds, things namely
1. To give all particulars necessary for incorporation of Company
2. To give affidavit to the Registrar of Company for the Purpose of Incorporation.
3. To do needful acts necessary for incorporation of the Company
4. He is authorized to include promissory notes letter of declaration and indemnity for the purpose
of Incorporation
5. To receive documents on behalf of the members of the company.
6. To sign forms, documents and papers required for the purpose of Incorporation of the company.
Dated…………….at this the………………………day of……………
Specimen Signature of the CA above named
7.8 GIFT DEED
7.7.1 Meaning of Gift Deed
The Law relating to Gift is provided in the Transfer of Property Act, 1882 and Indian Succession Act, 1925.
Gift is defined in the transfer if certain movable or immovable property made voluntary and without
consideration by one person called the donor to another called the done and accepted by or on behalf of
the done. A gift to be valid must be accepted by the done during the life time of the donor. Registration
of a gift often immovable property is must and that of movable property is optional.
110 CA ANKIT OBEROI

7.7.2 Gift Deed for gifting Car
This deed of gift is made on 7th day March 2013 at New Delhi between
Mr. A aged about _________ S/o _____________ R/at ____________ herein called DONOR
Mrs. B aged about __________ W/o ____________ R/at ___________ herein called DONEE
They Donor has gifted a car to donee.
Now the parties witnessed as follows

✓ Gift is Made on 1/03/2013
✓ Donor has gifted an Audi A4 to Donee on her marriage the market value of gift is Rs. 30 lakh.
✓ Donor has gifted to Donee out of his natural love & affection towards done on the occasion of
her marriage
✓ Donee has accepted the gift
✓ Donee is the absolute owner of the car gifted
In witness whereof parties have signed this deed
Witness Signature
1…………………. Donor………………
2…………………. Donee……………..
7.7.2 Gift Deed for gifting Flat
This Deed of gift is made of……………on this…………day of…………2014 between…………………an Indian

inhabitant residing at Flat no…….Cooperative Housing Society Limited…………..(city), hereinafter called
“The Donor” of the one Part and ……………. also an Indian inhabitant residing at Flat no…….Cooperative
Housing Society Limited…………..(city), hereinafter called “The Donee” of the other Part.
Whereas the Donee…………is the……………….(Relative) of Donor………..
Whereas the Donor is the member of…………………………..Society which is duly registered under
Maharashtra Cooperative Societies Act,1960. The Donor has 5 fully paid shares of the said society. The
Donor has acquired flat no……………..on the…………..floor and measuring……………sqr mtr. In the Building
situated at……………(City)
Whereas the Donor has full right title and interest in their said shares/flat more particularly described in
this schedule.
Whereas the Donor want to gift his right title and interest the said shares/flat in the said Building of the
Said Society described in the Schedule hereunder written to the Donee hereto.
The Donor out of natural love and affection for the done hereby transfer by way of Gift his right title and
interest in the said shares and the flat absolutely forever.
The Donee accept the gift and agrees to hold that right title and interest of the Donor in said Shares/flat
of the Societies.
111 CA ANKIT OBEROI

Signed and Delivered
Signature
Donor……………………… Donee………………………
Witness 1…………………. Witness 1………………….
Witness 2…………………. Witness 2………………….
PAST YEAR QUESTIONS
MAY-2014
1. Draft a ‘Gift Deed’ assuming our own facts regarding parties and subject matter relating to gift.
MAY-2013
2. What do you understand by “Lease Deed”? Draft a lease deed assuming necessary facts.
NOV-2012
3. M/s. Assure Investments, a firm of partners A and B appoint and authorize Mr. X giving powers to sell and
sign transfer deeds for transfer of shares and debentures by executing and instrument of the power of
Attorney Draft such instrument of the Power of Attorney of the firm.
MAY-2012
4. Mr. V is a shareholder of M/s Brown Limited, holding 150 Equity Share of Rs 10 each, on which the
company has declared a total dividend of 1,500 for the year 2011-12. Mr. V did not receive the dividend
warrant sent by the company.
Draft an Indemnity Bond to be sent to the company requesting the company to issue a duplicate dividend
warrant.
NOV-2010
5. A, B and C are partners of a firm A retires from the firm by mutual consent due to sikness Remaining
Partners (B and C) decide to admit D as a new partner in the firm Draft a deed for reconstitution of
partnership.
6. X desires to gift has flat to Y Draft a gift deed.
MAY-2010
7. The Board of Directors of RSP Limited agrees with X to hire his (X's) flat at NOIDA on lease for ten years
@ Rs.20,000 per month for marketing office of the company. You are a senior executive of the Board and
the board asks you to prepare the lease deed for the agreement. Draft a lease deed.
NOV-2009
8. A partnership firm was constituted by A, B, and C. A, the partner of the firm expressed his desire to
retire from the partnership firm by Mutual consent. Draft a "Partnership Retirement Deed".
JUNE-2009
9. A partnership firm was constituted by A, B and C partners, carrying on the business of shoe
manufacturing. Later on, Nickson Shoe Manufacturing Co. Limited proposed to purchase the business of
the firm to the partners of the firm. The partners unanimously consented to it and agreed to dissolve the
firm. Draft a Partnership Dissolution Deed in this respect.
112 CA ANKIT OBEROI

10. SVA Limited despatched Bonus Share Certificate to Mr. R. R did not receive the Bonus Share Certificate
as it was lost in the transit. R applied to the Company to issue the Bonus share certificate in duplicate. SVA
Limited asked Mr. R to submit an Indemnity Bond so that Bonus Share Certificate in duplicate may be
issued to him. Draft an Indemnity Bond to be given by R to the company for seeking release of Bonus
Share Certificate in duplicate.
NOV-2008
11. State the various components required to draft a partnership deed.
MAY-2008
12. Draft a Power of Attorney by an assessee authorizing a chartered accountant to appear before
income tax officer in respect of the pending taxation matters.
NOV-2007
13. J desires to gift out her flat Mumbai in City Cooperative Society registered under the Maharastra
Cooperative Societies Act, 1960, to her brother A Stating the legal requirements to be compiled with draft
a Gift Deed Take your own data regarding date, flat no. area etc.
MAY-2007
14. Mr. a has not received a dividend warrant of Rs. 1,5000 for 150 shares XYZ Ltd. Draft an indemnity
bond, to be given to the company for seeking release of dividend.
15. Draft a Power of Attorney by subscribers of Memorandum of Association of the company

authorizing a Chartered Accounting to appear before the Registrar of companies to do the needful for
the purpose of incorporation of a company.
113 CA ANKIT OBEROI

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COMMUNICATION CA-IPC

Q-1 What is Communication?

Q-2 What is the importance of Communication?

Technological Advancement:-Scientific and technological advancements have an effect on the

1.2 PROCESS OF COMMUNICATION

Q-3 Explain Communication Process.

Answer:-Communication is a dynamic, transactional i.e. two-way process, in which there is an exchange

Message:-Message is the idea or subject matter of communication which is transmitted to the

Channel/Medium:-Channel refers to the path/route through which the Message is communicated

Receiver:-Receiver is the person to whom a message is sent or intended to be sent.

Decoding:-Decoding is the process of understanding the message in its intended sense.

1.3 FORMAL COMMUNICATION

Q-4 What is Formal Communication?

Q-5 What are the types of Formal Communication?

Answer:-Formal Communication in an organization can be:-

Downward Communication:-Here, communication operates from superior to subordinate i.e. when

Horizontal or lateral Communication:-It means communication between coworkers of different area

Diagonal or Crosswise Communication:-Here, communication operates between superior of one

Q-6 Explain Merits/Advantages of Formal Communication?

Answer:-The Advantages of Formal Communication are as follows:-

Systematic:-Such communication is systematic and ensures orderly flow of information

Q-7 Explain Demerits/Disadvantages of Formal Communication?

Answer:-The Disdvantages of Formal Communication are as follows:-

No Immediate feedback:-Not suitable for situations requiring immediate feedback / response.

1.4 INFORMAL COMMUNICATION

Q-8 What is Informal Communication?

Q-9 What are the factors leading to Grapevine Phenomenon?

Q-10 Explain Merits/Advantages of Informal Communication?

Answer:- The Merits of Informal Communication are as follows:-

Parallel Channel:-Informal Channel functions as a supplementary or parallel channel of

Human relations:-Grapevine gives great psychological satisfaction to the workers.

Q-11 Explain Demerits/Disadvantages of Formal Communication?

Answer:-The Demerits of Informal Communication are as follows:-

Q-12 What are the types of Grapevine Chains?

Answer:-Specialists in this field have identified four types of Grapevine Chains

1.5 INTER-DEPARTEMENTAL COMMUNICATION

Q-13 What is Inter Departmental Communication?

Q-14 What are the causes of Interdepartmental Communication

Answer:-The causes of Interdepartmental Communication problems are as follows:-

1. Physical Separation – Office Design may create barriers to effective interdepartmental

1.6 ORAL COMMUNICATION

Q-15 What is Oral Communication?

Answer:-Oral Communication is face-to-face communication with another person. Speeches,

Q-16 What are the Features or characteristics of good Oral

Answer:-The following are the characteristics of good Oral Communication:-

Q-17 What are the Advantages of Oral Communication?

Answer:-Advantages of Oral Communication are as follows:-

Time saving:-It saves a lot of time, money and efforts.

Chances of Improving:-Helps us to correct ourselves since no record of it is kept.

Q-18 What are the Limitations of Oral Communication?

Answer:-Limitations of Oral Communication are as follows:-

Less reliable:-Less authentic as it is informal and not organized

To be conscious:-It is difficult for the speaker to be conscious of the body language.

1.7 WRITTEN COMMUNICATION

Q-19 What is written Communication?

Q-20 What are the Advantages of Written Communication?

Answer:-Advantages of Written Communication are as follows:-

Better for Lengthy Meesages:-Effective when the message is lengthy.

Permanent:-It is more precise and permanent means of communication.

Ready Records:-It provides opportunity to refer back as it have ready records.

Q-21 What are the Disdvantages of Written Communication?

Answer:-Limitations or Disadvantages of Written Communication are as follows:-

No immediate feedback:-Immediate feedback is not available.