Tag: public sector enterprises

Questions Related to public sector enterprises

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.

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.