All questions of Business Organizations for JAMB Exam

(c)...........A prospectus is a document issued by the company inviting the public and investors for the subscription of its securities. A prospectus also helps in informing the investors about the risk of investing in the company.

Correct answer is 2

Actually that is wrong.It is multinational companies.Option A

The Correct Option is (A)

The minimum number to form a public company is 7 member because it is a public company it is very easy

Departmental undertakings refer to the government-owned enterprises or organizations that are established to provide essential services to the public. These undertakings are typically operated by a specific department of the government and are responsible for delivering services in various sectors such as transportation, communication, and public utilities.

Various examples of departmental undertakings include:

1. Air India: Air India is the national flag carrier airline of India and is owned by the Government of India. It operates both domestic and international flights and plays a crucial role in the transportation sector.

2. Post and Telegraph Department: The Post and Telegraph Department, also known as the Department of Posts, is responsible for providing postal and telecommunication services in India. It manages the postal network, including mail delivery, money transfer, and other related services.

3. Railway: The Indian Railways is one of the largest railway networks in the world and is owned and operated by the government. It provides passenger and freight transportation services across the country, connecting various cities, towns, and villages.

These examples demonstrate the diverse nature of departmental undertakings and their significance in delivering essential services to the public. These undertakings are typically established to ensure that crucial services such as transportation, communication, and postal services are accessible to all citizens.

Departmental undertakings are typically funded by the government and operate under specific regulations and guidelines set by the respective departments. They are accountable to the government and are expected to fulfill their mandate efficiently and effectively.

In conclusion, departmental undertakings are government-owned organizations that provide essential services to the public. Examples include Air India, the Post and Telegraph Department, and the Indian Railways. These undertakings play a vital role in various sectors and contribute to the overall development and welfare of the country.

Resolution on Industrial Policy 1956

The 1956 resolution on industrial policy was a significant event in the history of Indian economic policy. It aimed to achieve a socialist pattern of society through a mixed economy in which the public and private sectors would coexist as complementary elements.

Reservation of Industries

One of the crucial aspects of the resolution was the reservation of certain industries for the public sector. The government believed that these industries were vital for the country's economic development and would be better managed by the state.

The number of industries reserved for the public sector was 17. These industries were deemed to be "strategic" and included:

1. Arms and ammunition and allied items of defence equipment, defence aircraft and warships.
2. Atomic energy.
3. Iron and steel.
4. Heavy castings and forgings of iron and steel.
5. Heavy plant and machinery required for iron and steel production.
6. Coal, lignite, and graphite.
7. Mineral oils.
8. Mining of iron ore, manganese ore, chrome ore, gypsum, sulphur, gold and diamond.
9. Mining of copper, lead, zinc, and tin.
10. Mining of bauxite, magnesium, and mica.
11. Telecommunications.
12. Railways.
13. Shipping.
14. Airways.
15. Generation and distribution of electricity.
16. Fertilizers.
17. Atomic minerals and mineral concentrates.

The reservation of these industries for the public sector meant that no private enterprise could operate in these areas without the government's permission. The government was responsible for setting up and managing these industries.

Conclusion

The 1956 resolution on industrial policy was a landmark event in the history of Indian economic policy. The reservation of certain industries for the public sector was a crucial aspect of the resolution, and it aimed to achieve a socialist pattern of society through a mixed economy. The reservation of 17 industries for the public sector was a significant step towards achieving this goal.

The term ‘PSEs’ stands for public sector enterprises, which are completely owned and controlled by the government. On the other hand, the other types of organisations given in the question, namely, Joint Hindu family, foreign companies and private entrepreneurs, are controlled and owned by private individuals.

The Food Corporation of India is a statutory body created and run by the Government of India. It is under the ownership of Ministry of Consumer Affairs, Food and Public Distribution, Government of India formed by the enactment of Food Corporation Act, 1964 by the Parliament of India

The Reserve Bank of India (RBI) is the central bank of India, established on April 1, 1935, under the Reserve Bank of India Act, 1934. It was set up as a statutory corporation, which means it is created by an Act of Parliament and has a separate legal identity from the government.

Here is a detailed explanation of why the Reserve Bank of India is classified as a statutory corporation:

1. Definition of a statutory corporation:
A statutory corporation is a government-owned corporation established by a specific Act of Parliament or state legislature. It operates at arm's length from the government and has its own legal status, powers, and functions.

2. Creation by an Act of Parliament:
The Reserve Bank of India was established by the Reserve Bank of India Act, 1934. This Act was passed by the Parliament of India, making the RBI a statutory corporation. The Act defines the objectives, functions, and powers of the RBI, as well as its governance structure.

3. Separate legal entity:
As a statutory corporation, the RBI has a separate legal identity from the government of India. It can sue and be sued, enter into contracts, acquire and dispose of property, and perform other legal acts in its own name. This provides the RBI with autonomy and independence in carrying out its functions.

4. Functions and powers:
The RBI is entrusted with the responsibility of regulating and supervising the Indian banking system, managing the country's monetary policy, issuing currency, and maintaining price stability. It also acts as the banker and debt manager to the government and performs various developmental and promotional functions to support the growth of the Indian economy.

5. Governance structure:
The RBI has a board of directors, consisting of a Governor and Deputy Governors, who are appointed by the government. The board is responsible for formulating and implementing the policies and decisions of the RBI. The Governor is the chief executive officer of the RBI and exercises substantial powers in managing its affairs.

In conclusion, the Reserve Bank of India is classified as a statutory corporation because it was established by an Act of Parliament, has a separate legal identity, and operates independently of the government in carrying out its functions and powers.

Departmental Undertakings for National Security

Introduction:
Departmental Undertakings refer to the government-owned and operated organizations that are established to provide specific goods and services. These undertakings are established with the objective of providing essential goods and services to the citizens at a reasonable cost. Departmental undertakings are suitable in case of national security.

National Security:
National security is the protection and preservation of a country's sovereignty, territorial integrity, and the safety of its citizens from internal and external threats. The defense sector is a critical element of national security. The government establishes departmental undertakings to cater to the defense requirements of the country.

Suitability of Departmental Undertakings:
Departmental undertakings are suitable for national security because of the following reasons:

1. Control: The government has complete control over departmental undertakings. The government can regulate the production, distribution, and pricing of goods and services. The government can also ensure that the goods and services provided are of high quality and meet the required standards.

2. Security: Departmental undertakings provide essential goods and services required for national security. For example, the defense sector requires weapons, ammunition, and other equipment. The government can ensure that the production, distribution, and sale of these goods are secure and do not fall into the wrong hands.

3. Accountability: Departmental undertakings are accountable to the government. The government can ensure that the departmental undertakings are managed efficiently and effectively. The government can also ensure that the departmental undertakings are transparent and accountable to the citizens.

Conclusion:
Departmental undertakings are suitable for national security. The government can establish departmental undertakings to cater to the defense requirements of the country. The government can ensure that the departmental undertakings are managed efficiently, effectively, and transparently. The government can also ensure that the departmental undertakings provide high-quality goods and services at a reasonable cost.

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.

Budgetary allocation refers to the process of setting aside a certain amount of money for different expenses or projects within an organization or government department. This can include the allocation of funds for salaries, operating costs, equipment, and other expenses. The allocation of funds is typically based on the expected costs of the different activities and projects that the organization or department will undertake in a given period of time. The goal of the budgetary allocation process is to ensure that the organization or department has sufficient resources to carry out its activities and achieve its objectives.

Not all industries in India are reserved for public sector undertakings. The government has reserved certain industries for public sector undertakings to maintain control over key sectors of the economy.

Industries reserved for Public Sector Undertakings:

1. Atomic energy
2. Arms and ammunition and allied items of defense equipment, defense aircraft and warships
3. Iron, steel, and other metals
4. Mineral oils
5. Mining of iron, coal, and lignite
6. Power generation and distribution
7. Railways transport

Industries NOT reserved for Public Sector Undertakings:

1. Sugar industry
2. Information technology
3. Textiles
4. Pharmaceuticals
5. Automobiles
6. Banking and finance
7. Retail

Explanation:

In India, the government has reserved certain industries for public sector undertakings to maintain control over key sectors of the economy. These industries are those that are considered to be of strategic importance to the country. The government's objective in reserving these industries is to ensure that they are operated in the public interest and that the benefits of the industries are shared equitably among the citizens of the country.

Industries that are not reserved for public sector undertakings are open to private sector participation. Private sector companies can invest in these industries and operate them for profit. The government does not have any special control over these industries, and they are subject to the same regulations and laws as any other industry.

In conclusion, the sugar industry is not reserved for public sector undertakings. This means that private sector companies can invest in and operate sugar factories in India.

Statutory corporation

Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments.

Disadvantage of MNCs: Disregard national Priorities

MNCs, or Multinational Corporations, refer to companies that operate in multiple countries and have a global presence. While MNCs bring several advantages such as foreign exchange, improved standard of living, and advanced technology, they also have certain disadvantages. One such disadvantage is their tendency to disregard national priorities.

1. Disregard for national priorities:
MNCs often prioritize their own profits and interests over the national priorities of the countries they operate in. This can lead to a disregard for the local economy, environment, labor laws, and social welfare. MNCs may exploit loopholes in regulations or engage in practices that are detrimental to the host country's development goals.

2. Exploitation of resources:
MNCs may take advantage of the natural resources available in the host country without considering the long-term sustainability or the impact on the local communities. This can lead to environmental degradation, depletion of resources, and disruption of traditional livelihoods.

3. Economic dependency:
In some cases, MNCs can create a situation of economic dependency for the host country. They may dominate key sectors of the economy, leading to a heavy reliance on their operations. This can make the country vulnerable to economic fluctuations and reduce its ability to take independent decisions in line with its national priorities.

4. Unequal distribution of wealth:
MNCs often generate significant profits, but these may not always be distributed in an equitable manner. The wealth generated by MNCs may primarily benefit the company's home country or a small elite within the host country, leading to income inequalities and social tensions.

5. Impact on local businesses:
The entry of MNCs into a market can pose challenges for local businesses, particularly small and medium-sized enterprises (SMEs). MNCs often have greater financial resources, economies of scale, and access to advanced technology, which can make it difficult for local businesses to compete on a level playing field. This can result in the displacement of local businesses and a concentration of economic power in the hands of MNCs.

Overall, while MNCs bring several benefits, it is important to consider the potential disadvantages they may pose, including the disregard for national priorities. Governments and regulatory bodies need to ensure that appropriate measures are in place to balance the interests of MNCs with the broader socio-economic objectives of the host country.

Joint Venture is an agreement between two or more parties to combine their resources in achieving the common organizational goals

Introduction:
In the field of commerce, public sector undertakings (PSUs) play a crucial role in the economic development of a country. PSUs are government-owned corporations or entities that operate in various sectors to provide essential goods and services to the public. They are established and governed by the government to fulfill specific social and economic objectives.

Explanation:
The given options are:
a) Partnership
b) Departmental undertaking
c) Government companies
d) Statutory corporation

Partnership:
Partnership refers to a business structure where two or more individuals come together to carry out a business with a common objective. A partnership is not a public sector undertaking as it is formed by private individuals and does not have any government ownership or control. Therefore, option 'A' is the correct answer as it does not fall under the category of public sector undertakings.

Departmental undertaking:
A departmental undertaking refers to a business unit or enterprise that is directly owned and operated by the government department. These undertakings are established to carry out specific activities or functions of the government. They are fully funded by the government and operate under its control and direction. Departmental undertakings are considered as public sector undertakings.

Government companies:
Government companies are entities that are established and owned by the government to engage in various commercial activities. These companies have a separate legal identity and operate under the Companies Act. The majority of the shares in these companies are held by the government, either directly or through other government-owned entities. Government companies are an example of public sector undertakings.

Statutory corporation:
Statutory corporations are autonomous bodies that are created by an Act of Parliament or State Legislature. These corporations are established to perform specific functions or provide essential services to the public. They have their own legal identity and operate independently of the government. Statutory corporations are considered as public sector undertakings.

Conclusion:
In summary, out of the given options, partnership is not a public sector undertaking. Public sector undertakings are government-owned corporations or entities that operate in various sectors to provide essential goods and services to the public. They are established and governed by the government to fulfill specific social and economic objectives.

Application for approval of name of a company is to be made to Registrar of Companies.

Explanation:

The approval of the name of a company is an important step in the process of company registration. It ensures that the proposed name is unique and does not conflict with any existing businesses or trademarks. The application for approval of the name of a company is to be made to the Registrar of Companies.

Registrar of Companies:
The Registrar of Companies (ROC) is an office under the Ministry of Corporate Affairs responsible for the administration and regulation of companies in India. The ROC is responsible for maintaining a register of companies, processing company registrations, and ensuring compliance with various provisions of the Companies Act.

Process of Approval:
The process of approval of the name of a company involves the following steps:

1. Name Availability Check: The first step is to check the availability of the proposed name. The applicant can perform a name availability check on the MCA portal to ensure that the name is not already taken or similar to an existing company or trademark.

2. Application for Name Approval: Once the availability of the name is confirmed, the applicant needs to file an application for name approval with the ROC. The application should include the proposed name, along with supporting documents and fees.

3. Name Approval by ROC: The ROC will review the application and check if the proposed name complies with the rules and regulations regarding company names. The ROC may reject the name if it is found to be identical or too similar to an existing company or trademark, or if it violates any other provisions of the Companies Act.

4. Resubmission or Appeal: If the proposed name is rejected, the applicant may have the option to resubmit the application with a different name or appeal the decision of the ROC.

5. Name Reservation Certificate: If the proposed name is approved, the ROC will issue a Name Reservation Certificate. This certificate grants the applicant the exclusive right to use the proposed name for a period of 20 days from the date of approval.

Conclusion:
In conclusion, the application for approval of the name of a company is to be made to the Registrar of Companies. The ROC plays a crucial role in ensuring that the proposed name is unique and complies with the provisions of the Companies Act. It is important for applicants to carefully choose a name for their company and follow the necessary procedures to obtain approval from the ROC.