Tag: organisation of commerce and management

Questions Related to organisation of commerce and management

Which of the following can be categorized as "Departmental Undertakings"?
(1)  Unit Trust of India 
(2)  Bharat Electronics Limited 
(3)  Posts and telegraph 
(4)  Posts and telegraph 
(5)  Food Corporation of India 
  The correct answer is - 

organisation of commerce and management government organisation departmental undertakings meaning and features of departmental undertaking forms, comparison and cases of public enterprises classification of commercial organisations

  1. (1), (2) & (4)

  2. (1), (3) & (5)

  3. (3) & (5)

  4. (2) & (4)

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Correct Option: D
Explanation:

Departmental undertakings are established as departments of the ministry and are considered part or an extension of the ministry itself. 


These undertakings may be under the central or state government and the rules of central/ state government are applicable.

The public corporation is suitable for undertakings requiring monopoly powers, eg public utilities.

organisation of commerce and management government organisation departmental undertakings meaning and features of departmental undertaking forms, comparison and cases of public enterprises classification of commercial organisations

  1. True

  2. False

  3. Partly true

  4. None of above

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Correct Option: A
Explanation:
The term public sector undertaking enterprise refers to a Government Company. The government company gets incorporated under the companies act, 1956. All the provisions of companies act are applicable to a government company. Ownership: The government company is wholly or partly owned by the government.

Departmental undertakings fail to provide flexibility for smooth functioning of operations of the business.

organisation of commerce and management government organisation departmental undertakings meaning and features of departmental undertaking forms, comparison and cases of public enterprises classification of commercial organisations

  1. True

  2. False

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Correct Option: A

The funds earned are a direct income for the government.

organisation of commerce and management government organisation departmental undertakings meaning and features of departmental undertaking forms, comparison and cases of public enterprises classification of commercial organisations

  1. True

  2. False

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Correct Option: A
Explanation:

The revenue earned by the departmental undertakings goes directly to the treasury and hence is a source of income for the government. 

Departmental undertakings are subject to accounting and audit that apply to other government activities.

organisation of commerce and management government organisation departmental undertakings meaning and features of departmental undertaking forms, comparison and cases of public enterprises classification of commercial organisations

  1. True

  2. False

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Correct Option: A
Explanation:

The departmental undertaking is the oldest and traditional form of an organization of the public sector enterprise.It is organized, financed and controlled in such a manner that any other government organization. The undertaking is under the control of a minister who is responsible to the parliament.

The departmental head can take decisions without the permission of the ministry.

organisation of commerce and management government organisation departmental undertakings meaning and features of departmental undertaking forms, comparison and cases of public enterprises classification of commercial organisations

  1. True

  2. False

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Correct Option: B
Explanation:

The employees or heads of departments of departmental undertakings are not allowed to take independent decisions without the approval of the ministry concerned which leads to delays in matters where prompt decisions are required. 

The company which is incorporated outside India but has a place of business in India through its branches or agencies is known as _______.

organisation of commerce and management public sector undertakings & global enterprises departmental undertakings meaning and features of departmental undertaking government organisation classification of commercial organisations

  1. Indian Company

  2. Foreign Company

  3. Domestic Company

  4. Home Company

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Correct Option: B
Explanation:

Foreign company means any company or body corporate incorporated outside India which : Has a place of business in India whether by itself or through an agent, physically or through electronic mode and. Conducts any business activity in India in any other manner.

The liability of the member of the company is limited to the extent of the ________ of the shares held by them.

organisation of commerce and management public sector undertakings & global enterprises departmental undertakings meaning and features of departmental undertaking government organisation classification of commercial organisations

  1. Unpaid value

  2. Paid value

  3. Nominal value

  4. All of the above

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Correct Option: C
Explanation:

Also referred to as face value or par value, nominal value is the value shown on the face of a security certificate or instrument, including currency. The concept most commonly applies to stocks and bonds but is especially important to bond and preferred stock investors.Every share has a nominal (or par) value. It may be a £1 share or a 10p share, or whatever. The nominal value is usually expressed in sterling, but can be in any currency. A company may not issue any share at a discount, i.e. may not sell it for less than its nominal value: CA 2006, sec580.

Liability clause in MOA is required by __________________.

organisation of commerce and management public sector undertakings & global enterprises departmental undertakings meaning and features of departmental undertaking government organisation classification of commercial organisations

  1. Company Limited by shares

  2. Company Limited by guarantee

  3. Company Limited by both shares and guarantee

  4. All of the above

Show answer
Correct Option: D
Explanation:

Liability Clause. The fourth clause of MOA, the liability clause declares the liability of members of the company to be either limited or unlimited.However, in case of a limited company, the liability of directors or managers of a company may be unlimited, if specified in the memorandum.

Every alteration in the MOA will be made only in these clauses, either in all or any of these clauses. Therefore the situations under which the MOA needs to be altered are Change in the name of the Company. Change of registered office of the Company.

Which of the following statement is false?

organisation of commerce and management public sector undertakings & global enterprises departmental undertakings meaning and features of departmental undertaking government organisation classification of commercial organisations

  1. No legal formality is required to form a company

  2. The shareholders of a company have limited company

  3. A company can own property in its own name.

  4. A company is managed by the elected representatives of shareholders.

Show answer
Correct Option: A
Explanation:

Formality also means the conditions which must be observed in making contracts, and the words which the law gives to be used in order to render them valid. It also signifies the conditions which the law requires to make regular proceedings.