Tag: forms of business organisation - 2

Questions Related to forms of business organisation - 2

Which of the following is example of a public corporation?
I. Life Insurance Corporation of India (LIC)
II. Employees State Insurance Corporation (ESIC)
III. Industrial Development Bank of India (IDBI)
Select the correct answer from the options given below.

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. $I - \checkmark, II - x, III - \checkmark$

  2. $I - x, II - \checkmark, III - x$

  3. $I - \checkmark, II - \checkmark, III - x$

  4. $I - \checkmark, II - \checkmark, III - \checkmark$

Show answer
Correct Option: D
Explanation:

A company whose shares are publicly traded and are usually held by a large number (hundreds or thousands) of shareholders. The usual British term is a public limited company. A government-owned company such as an airline or public transit company. See also corporation sole. 

examples - LIC, Food Corporation of India (FCI), ONGC, Air India, Indian Airlines, State Bank of India, Reserve Bank of India, Employees State Insurance Corporation, Central Warehousing Corporation, Damodhar Valley Corporation, National Textile Corporation, Industrial Finance Corporation of India (IFCI), Unit Trust of India(UTI). Employees State Insurance Corporation (ESIC), Industrial Development Bank of India (IDBI).

Oil and Natural Gas Corporation, Indian Oil Corporation, Steel Authority of India, and Bharat Heavy Electrical are all examples of ______________.

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. small Scale Units

  2. Private Sector Units

  3. Public Sector Units

  4. Sick Units

Show answer
Correct Option: C
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.

Which of the following is example of a public corporation?

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. Life Insurance Corporation of India

  2. Employees State Insurance Corporation

  3. Industrial Development Bank of India

  4. All of above

Show answer
Correct Option: D
Explanation:

 company whose shares are publicly traded and are usually held by a large number (hundreds or thousands) of shareholders. The usual British term is a public limited company. A government owned company such as an airline or publictransit company. See also corporation sole.

BRPSE has made recommendations in respect of __________ central public sector enterprises so far and out of them the Government has approved revival plant of _______ cases till $30$th March $2006$.

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. $15, 31$

  2. $5, 21$

  3. $31, 15$

  4. $21, 5$

Show answer
Correct Option: C
Explanation:

BRPSE has made recommendations in respect of 31 central public sector enterprises so far and out of them the Government has approved revival plant of 15 cases till 30th March, 2006. Board for Reconstruction of Public Sector Enterprises was established in December 2004 as an advisory body to advise the government on the strategies, measures and schemes related to strengthening, modernizing, reviving and restructuring of public sector enterprises.

_________ is a corporation enterprise that manages production or delivers services in more than one country.

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. A multinational Corporation

  2. Multinational Enterprise

  3. (a) or (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: C
Explanation:

A multinational corporation or multinational enterprise is a corporation enterprise that manages production or delivers services in more than one country. It can have unlimited scope for raising finance. Shares of multinational enterprise are freely transferable. It has facilities and other assets in more than one country.

Which of the following statement is NOT true?

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. The power to make calls can only be exercised at the Board Meeting

  2. The company can have both managing directors and manager

  3. The directors cannot be removed by the State Government

  4. None of the above

Show answer
Correct Option: B
Explanation:

The company can have both managing directors and manager- this statement is not true. Managing director and manager of the company is referred to the same person. Managing director is a person who is responsible for the daily operations in the company.

Ford, Toyota, Honda and Volkswagen, oil companies like Shell, BP and Exxon Mobil Technology companies like Dell, Microsoft, Hewlett Packard and Canon and food and drink companies such as Coca Cola and Mc Donalds can be classified as ______________.

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. statutory corporation

  2. mutlinational corporation

  3. public sector corporation

  4. none of above

Show answer
Correct Option: B
Explanation:

Ford, Toyota, Honda and Volkswagen, oil companies like Shell, BP and Exxon Mobil Technology companies like Dell, Microsoft, Hewlett Packard and Canon and food and drink companies such as Coca Cola and Mc Donalds can be classified as multinational corporation. A multinational corporation or multinational enterprise is a corporation enterprise that manages production or delivers services in more than one country. It can have unlimited scope for raising finance. Shares of multinational enterprise are freely transferable. It has facilities and other assets in more than one country.

A board meeting can be held anywhere ___________.

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. True

  2. False

  3. Partly True

  4. Partly False

Show answer
Correct Option: A
Explanation:

A board meeting can be held anywhere- this is a true statement. A board meeting can be described as a meeting of the board of directors of a company at which the policy of the company and major decisions as to its future actions are discussed. The powers of the board meeting is set out in company's articles of associations.

Which of the following statement is NOT correct with respect to a Board Meeting?

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. No time limit for serving the notice is prescribed by the Act.

  2. The Board meeting should be held only at registered office of the company

  3. The Board meeting can also be held on a public holiday

  4. The BM can be held even after the normal business hours

Show answer
Correct Option: B
Explanation:

The Board meeting should be held only at registered office of the company- this statement is not correct with respect to a Board meeting. The board meeting can be held at any place.. Board meeting is generally held by the directors of the company.

Shares of _________ company are freely transferable.

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. Private Company

  2. Public Company

  3. Both (a) & (b)

  4. None of the above

Show answer
Correct Option: B
Explanation:

Private company'is a company, which restricts the right to transfer its shares. In the case of a public company, the Act provides that the shares or debentures and any interest of the company are freely transferable. 

Free transferability of shares in public.  restricts the right to transfer its shares, if any; While public company is a company which is not a private company and moreover, the shares of a public company are freely transferable.