Tag: public sector enterprises

Questions Related to public sector enterprises

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

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. $2007$

  2. $1997$

  3. $1967$

  4. $1957$

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Correct Option: B
Explanation:

Navaratna companies can invest up to Rs 1,000 crore without explicit government approval. "Miniratnas" can afford less extensive financial autonomy.

The term Public Ltd. Company is defined in section _________ of the Companies Act, $2013$.

elements of business public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

  1. $2(71)$

  2. $3(1)(iv)$

  3. $3(2)$

  4. $4$

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Correct Option: A
Explanation:

As per section 2(71) of the companies Act 2013 a public limited company is a company which is not a private company and has a minimum paid up share capital of Rs-5,00,000. The minimum number of members in a public limited company are seven and maximum are unlimited. 

PSE's are organisations owned by _____________.

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. Joint Hindu Family

  2. Government

  3. Foreign Companies

  4. Private Entrepreneurs

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Correct Option: B
Explanation:

Public sector enterprise ( PSE ) is the enterprise owned by the union government of India or one of the many state or territorial governments or both. These are the enterprises where the holding power of the government is 51% or more. Hence, PSE's are organisations owned by the central government.

Centralised control in MNC's implies control exercised by _____________.

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. Branches

  2. Subsidiaries

  3. Headquarters

  4. Parliament

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Correct Option: C
Explanation:

Multinational corporation ( MNC ) is an organisation who have branches in many different countries but managed wholly from one country i.e. home country. Hence, centralised control in MNC's implies control exercised by the headquarters.

Which of the following is the most important motive of private firms?

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. Sales motive

  2. Maximising output

  3. Profit motive

  4. All the above

Show answer
Correct Option: C
Explanation:

The most important motive of private firms is to maximize their profit. The private firms want to increase the level of their profits which helps in the growth of the company.

The public company has to take approval of SEBI, if public offer for shares exceeds __________ crores.
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. two

  2. three

  3. five

  4. six

Show answer
Correct Option: B
Explanation:

The public company has to take approval of SEBI, if public offers for shares exceeds 3 crores according to the companies act. 

A public company need to have minimum ___________ members.

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. two

  2. five

  3. seven

  4. ten

Show answer
Correct Option: C
Explanation:

Under the Companies Act 2013, minimum 7 members are required to start a public company. 

The Act that governs the activities of a company is the Companies Act, 1956.
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

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Correct Option: A
Explanation:

The Companies Act 1956 is administered by the Government of India through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc. The Act is 658 sections long. The Act contains provisions about Companies, directors of the companies, memorandum and articles of associations, etc. This act states and discusses every single provision requires or may need to govern a company. However, some of the provisions are now amended as per the Companies Act, 2013.

State  the following statement is True of False:

The secretary of a public limited company is elected by shareholders.

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

Show answer
Correct Option: B
Explanation:

This statements is False because of the following reasons:


(i) The companies Act,1956 defines a joint stock company as" a company having a permanent paid up or normal share capital of fixed amount divided into share also of fixed amount, as held and transferable as stock , of divided and held partly in the other , and formed on the principle of having for its members the holder of those share or that stock and no other persons."


(ii)  Since, the management of the company is entrusted to the Board of Directors, only the Board of Directors can appoint a qualified company secretary.

(iii) A company secretary is appointed by the Board of Directors after its incorporation , to assist them in carrying out the administration of the company.

(iv) The shareholder have a voting right to elect a person from among themselves.

(v)  A secretary need not be a shareholder.

(vi) He is an outsider not belonging to the constituency of shareholders.

(vii) Hence, the secretary of a public limited company is elected by the Board of Directors.

State the following statement is True or False:
Internal rules and regulations of a company are the articles of association.

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

Show answer
Correct Option: A
Explanation:

Articles of Association is a document which prescribes the rules and bye-laws for the general management of the company and for the attainment of its object as given in the memorandum .It is a document of paramount significance in the life of a company as it contains the regulations for the internal administration of the company’s affairs.