Test: Public, Private and Global Enterprises - 2 - Commerce MCQ

tatuary corporation:statutay corporation are the pub. Enterprise established and governed by a special act of the parliament or by the state or central lagislature.for ex. LIC
departmental undertaking:it is established under specific ministry all activities performed by this department are integral part of the ministry.thus no independent identity. it is managed by central or state government.for ex. Railway
government companiesin this investment is done by government to start the company and if the company get profit they have to give51% in social work. and if there is loss government is liable to pay.

This is the most established and most customary type of sorting out open undertakings. These enterprises are established as departments of the ministry and are considered part or an extension of the ministry itself. The Government functions through these departments and the activities performed by them are an integral part of the functioning of the government. They have not been constituted as autonomous or independent institutions and as such are not independent legal entities. They act through the officers of the Government and its employees are Government employees. These undertakings may be under the central or the state government and the rules of central/state government are applicable. Examples of these undertakings are railways and post and telegraph department.

For example, the Indian Railways are managed by the Ministry of Railways. Post and Telegraph services are run as a department, in the Ministry of Communication. The Delhi Milk Scheme, All India Radio, Doordarshan are other examples of departmental undertakings.

 The name proposed for a company is considered 'undesirable' if it is identical to the name of an existing company, or if the proposed name closely resembles the name of an existing company, or if it is an emblem of a government organisation. In all these cases, the name proposed is considered 'undesirable'.

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.

Contracts signed by promoters with third parties before the incorporation of company. Contracts signed after incorporation but before commencement of business. These are not legally binding on the company and cannot be ratified after incorporation. They can only be undertaken by public company.

Preliminary contracts are contracts entered into by the promoters on behalf of the company before its incorporation with third parties. ... Such contracts are legally not binding upon the company even after it comes into existence.

MNC stands for Multinational Corporation.