Skip to content

CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Business Ethics, Code of Conduct and Anti-Bribery

Mehra & Sons, a partnership firm formed in India, carries on business only outside India. Its agent bribes a public servant for its benefit, and the firm is later charged under section 9. Which statement about the firm's status is correct?

The firm is a commercial organisation. Section 9(3)(a)(iii) covers a partnership firm or association of persons formed in India that carries on business whether in India or outside India. Incorporation as a company is not required, and operating only abroad does not take it outside the section.

  1. AIt is not a commercial organisation because it operates only abroad
  2. BIt is a commercial organisation, because a partnership firm formed in India carrying on business in India or outside India is coveredCorrect
  3. CIt is covered only if it is incorporated as a company
  4. DIt is covered only if it also carries on part of its business in India

Explanation

Section 9(3)(a)(iii) defines commercial organisation to include a partnership firm or association of persons formed in India that carries on business whether in India or outside India. So the firm is covered despite operating abroad. The condition of carrying on part of the business in India applies to bodies formed outside India.

Did you get it right without looking?

One question tells you little. A timed set on Business Ethics, Code of Conduct and Anti-Bribery shows your real accuracy, how long you take and where you lose marks.

Practise Business Ethics, Code of Conduct and Anti-BriberyFree diagnostic mock

More Business Ethics, Code of Conduct and Anti-Bribery questions