Tag: departmental undertakings

Questions Related to departmental undertakings

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. 

These organizations usually do not provide adequate services to fulfill consumer needs.

commercial applications 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

Departmental undertakings is a part of the private sector group of companies.

commercial applications 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 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.

Which form of organization is primarily used for provision of essential services such as railways, postal services, broadcasting etc.?

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

  1. Departmental undertaking

  2. Statutory corporation

  3. Government company

  4. All of the above

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Correct Option: A
Explanation:

A departmental undertaking is organized self- contained but it is under the overall control of the departmental head and the ministry concerned. It is a very old and traditional form of public enterprise. It may be organized as a separate full-fledged ministry.

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

commercial applications 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:

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 public limited company. A government owned company such as an airline or public transit company. See also corporation sole.

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

commercial applications 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:

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 undertaking is under the control of a minister who is responsible to the parliament. Some example of departmental undertakings is Indian Railways, Post and Telegraph, All India Radio, Doordarshan etc.

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.