Mind Map: Public, Private and Global Enterprises | Business Studies (BST) Class 11 - Commerce PDF Download

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Public, Private, and Global Enterprises
Public Enterprises
T ypes
Departmental Undertakings
Operate as departments of the government
Financed by the government
Revenue goes directly to the government treasury
Statutory Corporations
Established by a special act of Parliament or state legislature
Have autonomy in decision-making
Financed independently and profits are reinvested in the enterprise
Government Companies
At least 51% equity held by the government
Governed by the Companies Act
Operate with management autonomy
Features
Government Ownership
Entire equity held by the government
Ultimate control through ministries
Service Motive
Primary objective is service to the public
Profits are secondary, ensuring affordable services
Government Control
Regular supervision by government authorities
Policies directed by government objectives
Private Enterprises
T ypes
Sole Proprietorship
Single person ownership
Unlimited liability
All profits to the owner
Partnership
T wo or more individuals manage the business
Shared liability
Profits and losses shared among partners
Joint Hindu Family Business
Business inherited by Hindu Undivided Family members
Managed by the eldest family member (Karta)
Profit shared among family members
Cooperative Societies
Voluntary association of individuals
Operate for mutual benefit
Profits shared among members
Company
Legal entity separate from its owners
Limited liability
Owned by shareholders, managed by directors
Features
Private Ownership
Owned by private individuals or entities
No government involvement in ownership
Profit Motive
Primary objective is profit maximization
Competitive strategies for revenue generation
No Government Interference
Operate under market forces
Freedom in decision-making
Global Enterprises
Features
Huge Investments
Significant capital investment
High financial risk
Advanced T echnology
Use of latest technology and innovations
Competitive advantage in operations
International Operations
Presence in multiple countries
Global strategy for product and marketing
Professional Management
Qualified professionals in management roles
Strategic management practices
Role
Foreign Exchange
Earn valuable foreign exchange through exports
Contribute to balancing foreign trade
Employment Generation
Create job opportunities in operating countries
Contribute to economic development
Development of Backward Areas
Invest in underdeveloped regions
Infrastructure and economic development in such areas
Impact on Host Country
T ransfer of technology and skills
May influence local industries and economic balance