Test: Public, Private and Global Enterprises - 3 - Commerce MCQ

Disinvestment refers to the process of selling equity shares of a public sector enterprise to the private or the public sector. Through disinvestment, the ownership of the government in a PSE gets diluted, and simultaneously, the quantum of shares held by the private sector in that enterprise increases.So disinvestment of PSEs implies selling of shares to the public.

Steel Authority of India Limited is a public sector undertaking, owned and operated by the Government of India.

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.

A holding company is a form of corporate ownership structure. It involves a parent corporation that owns enough equity and voting stock in another company that it can control that company's policies and oversee its management decisions.
So, an MNC out of all the given options is the type of company which has all the assets, stock etc vested in the parent country and operates in other countries.

As more and more mergers occur in the market it will be a disadvantage to the joint ventures as they merged with other firms in order to gain more profit. As more and more firms merge it will lead to a decrease in the amount of profit earned by the joint ventures which will lead to a disadvantage of the firm.

A government company is a company registered under the Indian Companies Act in which not less than 51% of paid up share capital is held by the central government or any state government or partly by central government partly by one or more state governments. Private participation in capital and management is not allowed in this form of organization. It enjoys financial autonomy and has independent staffing system. Such a company does not have to worry about auditing, accounting and budgetary controls.