Tag: forms of business organisation - 2

Questions Related to forms of business organisation - 2

The primary objective of public sector enterprises is to ________.

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. Serve the public

  2. Maximize profit

  3. Act as a catalyst for community development

  4. Provide agricultural products

Show answer
Correct Option: A
Explanation:

An important objective of public enterprises is to prevent the concentration of economic power and growth of private monopolies. Public sector helps the government to enforce social control on trade and industry for ensuring equitable distribution of goods and services, Public sector organisations are businesses set up with the aim of providing a public service rather than making a profit. Social enterprises are private organisations that are run along business lines, but where any profits are reinvested into the community or into social or environmental projects.

The chief characteristic(s) of public enterprises is/are.

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. In some specific cases the public enterprises enjoy monopoly in operation like Railways, Post and Telegraph and Energy production.

  2. The state enterprises are liable to the general public for their performances.

  3. The public enterprises run as per the whims of the government and as such the economic policies and plans of the government are implemented through public enterprises.

  4. All of the above

Show answer
Correct Option: D
Explanation:

The chief characteristics of public enterprises are:

1. In some specific cases the public enterprises enjoy monopoly in operation like railways, post and telegraph and energy production.
2. The state enterprises are liable to the general public for their performance.
3. The public enterprises runs per the whims of the government and as such the economic policies and plans of the government are implemented through public enteprises.

The organization form of public sector enterprise does not include______________.

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. Departmental Undertaking

  2. Statutory Corporation

  3. Government Company

  4. Subsidiary to Public Company

Show answer
Correct Option: D
Explanation:

Subsidiaries remain private. They are private subsidiaries of a public company. Think about it: if a subsidiary went public, that would mean that its shares were being offered to the public, instead of all being owned by the parent company, and so it would no longer be a subsidiary.

The chief characteristic(s) of public enterprises is/are __.
$(1)$ Autonomous or semi-autonomous organization
$(2)$ Financed, owned & managed by the government
$(3)$ Primary objective of the establishment of public enterprises is to serve the public at lot of profit.

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. $(3)$ & $(2)$

  2. $(2)$ & $(1)$

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

  4. $(1)$ & $(2)$

Show answer
Correct Option: D
Explanation:

Public enterprises are autonomous and semi autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial activities.

The chief characteristics of public enterprises include autonomous or semi-autonomous organisation and they are financed, owned & managed by the government.

Which of the following is public enterprise?
$1$. Hindustan Machine Tools (HMT)
$2$. Gas Authority of India (GAIL)

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. $2$ only

  2. $1$ only

  3. Both $2$ & $1$

  4. Neither $1$ nor $2$

Show answer
Correct Option: C
Explanation:

The government owned enterprises is called a public enterprise. It refers to any industrial or commercial undertaking which is owned and managed by central, state or local government and of which is the output is marketed. The examples are Hindustan Machine Tools (HMT), Gas Authority of India (GAIL).

In July $1997$, which of the following has not been identified as a 'navaratna' public sector enterprise?

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. SAIL

  2. BHEL

  3. UTI

  4. ONGC

Show answer
Correct Option: C
Explanation:

UTI Mutual Fund was carved out of the erstwhile Unit Trust of India as a SEBI registered mutual fund from 1 February 2003. 

The Unit Trust of India Act 1963 was repealed, paving way for the bifurcation of UTI into – Specified Undertaking of Unit Trust of India; and UTI Mutual Fund.

Which of the following is/are included in public sector enterprises as 'Navaratnas'?

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. HPCL

  2. IOC

  3. MTNL

  4. All of the above

Show answer
Correct Option: D
Explanation:

A state-owned enterprise in India is called a public sector undertaking (PSU) or a public sector enterprise. 

These companies are owned by the union government of India, or one of the many state or territorial governments, or both. The company stock needs to be majority-owned by the government to be a PSU.

The role of public sector was redefined. In July _________, Government identified nine central public sector enterprises as 'Navaratnas'.

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. $2007$

  2. $1997$

  3. $1967$

  4. $1957$

Show answer
Correct Option: B
Explanation:

The Maharatna firms can now decide on investments of up to 15 per cent of their net worth in a project; the Navaratna companies could invest up to Rs 1,000 crore without explicit government approval.

Which of the following cannot be termed as "Public Sector Enterprise"?

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. Various departments in Government Company registered under the Companies Act, 2013

  2. Government Company registered under the Companies Act, 2013 in which all the shares are held by President of India and only one share is held by nominee of president.

  3. Statutory corporations owned and controlled by Central or State Government.

  4. All of the above

Show answer
Correct Option: A
Explanation:

A state-owned enterprise in India is called a public sector undertaking (PSU) or a public sector enterprise. These companies are owned by the union government of India, or one of the many state or territorial governments, or both. The company stock needs to be majority-owned by the government to be a PSU.

Public enterprise, a business organization wholly or partly owned by the state and controlled through a public authority. Some public enterprises are placed under public ownership because, for social reasons, it is thought the service or product should be provided by a state monopoly.

Feature(s) of a public corporation is/ are ________________________.

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. It is generally not exempt from the rigid rules applicable to the expenditure of public funds

  2. A public Corporation is managed by board of directors who are appointed by the public financial institutions

  3. The primary motive of the corporation is public service rather than private profits

  4. All of above

Show answer
Correct Option: C
Explanation:

Public sector refers to government-owned organizations and government provided services. Private sector refers to organizations that are not government owned and the goods and services provided by organizations outside of the government. For example, companies owned by individuals are part of the private sector.

Service Motive The primary motive of Public corporations is to provide services to the people and not to make profits. These organizations are expected to provide goods and services at a cheaper rate. Public Accountability A Public Corporation is accountable in the Parliament or the State Legislature.