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

MCQ Questions

Q14: Match the ‘forms of public enterprises’ in column I with their respective example in column II.

Codes
      A    B   C
(a) (i)  (ii) (iii)
(b) (iii) (i)  (ii)
(c) (i)  (iii) (ii)
(d) (ii) (iii) (i)
Ans:

Q25: Match the ‘forms of public enterprises’ in column I with their respective forming statement in column II.

Codes
      A    B   C
(a) (i)  (iii) (ii)
(b) (ii) (iii) (i)
(c) (i)  (ii) (iii)
(d) (ii) (i)  (iii)
Ans: (a)

Q26: If a public sector enterprise is making losses continuously, it was referred to the ____ .
(a) GIFR
(b) CIFR
(c) TIFR
(d) BIFR
Ans: (d)

Q27: Public sector can be classified into ____ divisions.
(a) 3
(b) 4
(c) 5
(d) 6
Ans: (a)

Q28: Which form of PSU has its own MoA and AoA?
(a) Private company
(b) Government company
(c) Departmental undertaking
(d) None of the above
Ans: (b)

Q29: Strategic industries like defence and atomic power work as ____ .
(a) departmental undertaking
(b) statutory corporation
(c) government company
(d) None of the above
Ans: (b)

Q30: Government has given autonomy to a PSU to improve its performance but held it accountable for specified results under an agreement. What is this agreement called?
(a) MoA
(b) AoA
(c) MoU
(d) GoU
Ans: (c)

Q31: Which of the following has the power of the government and the considerable amount of operating flexibility of private enterprises?
(a) Departmental undertakings
(b) Statutory corporations
(c) Government companies
(d) All of the above
Ans: (b)

Q32: In the 2001 resolution on industrial policy, the number of industries exclusively reserved for the public sector was brought down. This meant that the private sector can now enter all areas, except these and the public sector would have to compete with them. Which of the following areas are now exclusive for the public sector?
(i) Atomic energy
(ii) Arms
(iii) Communication
(iv) Railways
(a) (i), (ii) and (iii)
(b) (i), (iii) and (iv)
(c) (i), (ii) and (iv)
(d) (ii), (iii) and (iv)
Ans: (c)

Q33: The public sector enterprises are to invest and operate in certain spheres. Which of the following is not one of these core sectors?
(a) Civil aviation
(b) Pharmaceuticals
(c) Power generation plants
(d) Project management consultancies
Ans: (b)

Q34: Airtel is a big company providing telecom services to millions of people in India. Similarly, BSNL also provides telecom services to many people. Government of India is holding 100% of the share capital of BSNL, whereas Airtel is not under the direct control of government. Identify the sectors in which Airtel and BSNL enterprises are working.
(a) Public and private
(b) Public
(c) Private
(d) None of these
Ans: (a)

Q35: Departmental undertaking evades constitutional responsibility, as it is not answerable directly to Parliament for non-performance of duties.
(a) True
(b) False
(c) Can’t say
(d) Partially false
Ans: (b)

Q36: Steel Authority of India Limited (SAIL) is one of the largest steel-making companies in India and one of the Maharatnas of the country’s Central Public Sector Enterprises.
Vision of SAIL is to be a respected world class corporation and the leader in Indian steel business in quality, productivity, profitability and customer satisfaction.
SAIL was incorporated on 24th January, 1973 with an authorised capital of ₹ 2,000 crore and was made responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Bumpur, the Alloy Steel Plant and the Salem Steel Plant.
As government is the majority shareholder (with 75% stake), it exercises control over affairs of the company. Which type of public sector enterprise is highlighted here?
(a) Departmental undertaking
(b) Statutory corporation
(c) Government company
(d) None of the above
Ans: (c)

Q37: ____ type of PSUs has the highest degree of political interference.
(a) Public corporation
(b) Departmental undertaking
(c) Government company
(d) None of the above
Ans: (b)

Q38: Which of the following is true about statutory corporations?
(a) Statutory corporations are public enterprises that come into existence by a Special Act of the Parliament.
(b) Statutory corporations are subject to the same accounting and audit procedures as are applicable to government departments.
(c) Statutory enterprises are funded directly by the government treasury.
(d) The employees of statutory enterprises are civil servants.
Ans: (a)

Q39: Match the following.

Codes
      A    B   C
(a) (i)  (ii) (iii)
(b) (iii) (ii) (i)
(c) (ii)  (iii) (i)
(d) (i)  (iii) (ii)
Ans: (b)

Q40: The Ministry of Railways is a ministry in the Government of India, responsible for the country’s rail transport. The ministry is headed by the minister of railways, a cabinet-level minister who presents the rail budget every year in Parliament.
Indian railways is financed by the government through allocation of funds in the annual general budget of Parliament. How will you categorise Indian Railways as a form of public sector enterprise?
(a) Private company
(b) Government company
(c) Departmental undertaking
(d) None of the above
Ans: (c)

Q41: Statutory corporation is subject to the government rules and regulations in the matter of accounting, budgeting and audit as applicable to departmental undertaking.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Ans: (b)

Q43: ____ form of PSU has the greatest autonomy.
(a) Departmental undertakings
(b) Public corporation
(c) Government company
(d) None of the above
Ans: (c)

Q44: A government company is any company in which the paid up capital held by the government is not less than
(a) 49 percent
(b) 51 percent
(c) 50 percent
(d) 25 percent
Ans: (b)

Q45: Which PSU was the first to be privatised successfully in India?
(a) LJMC
(b) GAIL
(c) ONGC
(d) BHEL
Ans: (a)

Q46: Private enterprises are accountable to the public through the Parliament.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Ans: (b)

Q47: Which of the following statements regarding recent government policy measures towards the public sector is/are true?
(i) Restructuring and reviving potentially viable PSUs.
(ii) Closing down of those PSUs that cannot be revived.
(iii) Bringing down government equity in all non-strategic PSUs to 50 percent or lower.
(iv) Fully protecting the interest of workers.
(a) (i), (ii) and (iii)
(b) (i), (iii) and (iv)
(c) (i), (ii) and (iv)
(d) (ii), (iii) and (iv)
Ans: (c)

Q48: _____ is financed by the government through allocation of funds in the Annual General Meeting.
(a) Departmental undertaking
(b) Statutory corporation
(c) Government company
(d) None of the above
Ans: (a)

Q49: An organisation is working for the purpose of public welfare as a ministry of government. It is financed by government and all its income is deposited in government treasury. Identify which kind of public sector enterprise is it?
(a) Partnership
(b) Departmental undertaking
(c) Sole proprietorship
(d) Company
Ans: (b)

Q50: New economic policy was passed in the year ____ .
(a) 1985
(b) 1993
(c) 1991
(d) 1980
Ans: (c)

Q51: Statutory corporation is a company in which minimum 51% of the paid-up capital is held by the State or the Central Government.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Ans: B

Q52: In India, railway is an organisation wholly owned and managed by the ____ .
(a) reliance
(b) tata
(c) government
(d) railway department
Ans: (c)

Q53: Which of the following enterprises has separate legal entity?
(a) Departmental undertaking
(b) Statutory corporation
(c) Government company
(d) None of the above
Ans: (b)

Q54: The shares of a government company are purchased in the name of which of the following?
(a) The Indian Government
(b) The President of India
(c) The Chief Minister of the state, where the head office of the company lies
(d) The Managing Director of the company
Ans: (b)

Q55: Statutory corporations are formed by a Special Act of Parliament. The Act defines their powers, objects and privileges.
(a) True
(b) False
(c) Can’t say
(d) Partially false
Ans: (a)

Assertion-Reasoning MCQs :

Q1: Assertion (A) Statutory corporation is usually independently financed.
Reason (R) The revenue earned by statutory corporation is a source of income for the government as it goes directly to the treasury.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
Ans: (c)

Q2: Assertion (A) There is a need for separate legislation of the Parliament for formation of government company.
Reason (R) Government company can be established by fulfilling requirements of the Indian Companies Act.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
Ans: (d)

Q3: Assertion (A) Departmental undertaking is most suitable when national security is concerned.
Reason (R) Departmental undertaking is established under a Special Act of the Parliament.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
Ans: (c)

Q4: Assertion (A) Departmental undertakings are unable to take benefit of business opportunities.
Reason (R) Departmental undertakings do not undertake risky ventures due to bureaucrat’s over cautious and conservative approach.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
Ans: (a)

Case Based MCQs

Bharat Heavy Electricals Limited (BHEL) owned and founded by the Government of India, is an engineering and manufacturing company based in New Delhi, India. It was established in 1964. BHEL is India’s largest power generation equipment manufacturer. It is managed by the board of directors nominated by the government. As government is the majority shareholder, it exercises control over the affairs of the company.

Q1: How will you classify BHEL as a form of public sector enterprise?
(a) Departmental undertakings
(b) Government company
(c) Private sector enterprise
(d) Statutory corporation
Ans: (b)

Q2: The board of directors of the company are appointed by
(a) government
(b) public
(c) shareholders
(d) None of these
Ans: (c)

Q3: “As government is the majority shareholder, it exercises control over the affairs of the company.” Which feature of government company highlighted in the given lines?
(a) Formation
(b) Ownership
(c) Separate legal entity
(d) Audit procedure
Ans: (b)

Q4: BHEL was formed according to which Act?
(a) Partnership Act
(b) Hindu Succession Act
(c) Companies Act
(d) Cooperative Societies Act
Ans: (c)

Q5: Capital of such corporations comes from ____ .
(a) Board of Directors
(b) Government
(c) RBI
(d) None of these
Ans: (b)

Indian railway is a part of railway ministry. It is organised, financed and controlled by railway ministry.
The finances are allocated from government treasury and whatever revenue it earns is deposited to government treasury only.
It is treated as a part of government and even the appointment, recruitment and selection of employees is done in the same way as that of civil servant.
Q1: Name the type of public sector enterprise railway is considered as
(a) departmental undertaking
(b) statutory corporation
(c) government company
(d) None of the above
Ans: (a)

Q2: How does it get its finance?
(a) From personal funds
(b) From government treasury
(c) From RBI
(d) From SBI
Ans: (b)

Q3: What does it do with its revenue?
(a) Deposited in railway account
(b) Deposited in personal account
(c) Deposited in government account
(d) None of the above
Ans: (c)

Q4: What is the status of employees working in railways?
(a) Civil servants
(b) Private employees
(c) Self employed
(d) None of the above
Ans: (a)

Q5: How employees are selected in railways?
(a) Procedure of private companies
(b) Through placement agencies
(c) Through government
(d) None of the above
Ans: (c)

Sahil, Sarika, Saroj and Sunder are best friends. All of them have obtained the degree in Commerce from the same college. But they got admission in different courses in the university. Now they are doing their jobs in different departments.
Mr Sahil got selected for the post of Inspector in the Railways. His father too is working in the railways on a high post. Miss Sarika got selected in the Reserve Bank of India for the post of a Manager. The whole bank is most appreciative of her style of working. Miss Saroj is working on the post of Assistant Accountant in the department of accounts in ‘Hindustan achine Tools’. Her recognition in the company is as a specialist in accounts. Mr Sunder is successfully working in the H.R. Department of ‘Tata Motors’. All the four friends are fully satisfied with their respective jobs.
Q1: Identify the type of company in which Miss Saroj is working.
(a) Departmental undertakings
(b) Government company
(c) Private sector enterprise
(d) Statutory corporation
Ans: (b)

Q2: Identify the type of company in which Mr Sunder is working.
(a) Departmental undertakings
(b) Government company
(c) Public sector enterprise
(d) Statutory corporation
Ans: (c)

Q3: Identify the type of Mr Sahil’s enterprise.
(a) Departmental undertaking
(b) Government company
(c) Private sector enterprise
(d) Statutory corporation
Ans: (a)

Q4: Identify the type of enterprise in which Miss Sarika is working.
(a) Departmental undertakings
(b) Government company
(c) Private sector enterprise
(d) Statutory corporation
Ans: (d)

Q5: Identify the type of Mr Sahil’s father enterprise.
(a) Departmental undertakings
(b) Government company
(c) Private sector enterprise
(d) Statutory corporation
Ans: (a)