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Business Studies 3 Marks Question

Private, Public and Global Enterprises · CBSE STD 11 Commerce (CBSE - English Medium). 9 questions.

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3 Marks Question

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9 questions · timed · auto-graded

Question 13 Marks
ITC Ltd. is a Fast Moving Consumer Goods Company (FMCG) the company was founded in year 1790 by Henry Overton Wills. It's current headquarter is in Kolkata. Its currently headed by Y.C. Deveshwar (Chairman) and three executive directors viz., Nakul Anand Dhobale and K. Grant. It is the largest producer of Cigarettes in India with maximum brands of all range. It provides employment to near about 27,000 people. Apart from cigarettes the company is diversified into many other businesses also like hotels, papers, packaged foods, apparels, etc. In the list of world's most reputable companies, ITC positions at number 95. It is the only Indian FMCG company on Forbes Global 2000 ranking. The company is fulfilling its social responsibility by contributing to various programmes like ITC e-Choupal ecosystem, skill camp, vocational training, health camp and sanitation. The group has an account in State Bank of India for its business dealings.

On the basis of the given information about ITC Ltd., answer the following questions:

(a) The working of a successful private sector enterprise is highlighted above. Name and explain the other sector which co-exists with it in the mixed economy.

(b) Identify any two values which according to you can be associated with ITC Ltd.

Answer
(a) The public sector enterprises consists of various organisations owned, managed and controlled by the government. These organisations may either be partly or wholly owned by the central or state government.

The various forms of public sector enterprises are:

(i) Departmental undertaking.

(ii) Statutory corporation.

(iii) Government company.

(b) The two values associated with ITC Ltd. are concern for society and employment generation.

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Question 23 Marks
Give the benefits of Public-Private partnership.
Answer
The various benefits of Public-Private Partnerships are as follows:
  1. Inflow of Private Investment: Private participation in investment reduces the use of public money, which can be used in other priority areas and projects.
  2. Sharing of Project Risk: The structuring of a PPP project allocates the risk to the agency which is able to handle it. commercial responsibilities. Their expertise in their field brings efficiency to the project.
  3. Public Welfare: PPP is used in the government projects targeted at public welfare. e.g., Delhi Metro Railway Corporation (DMRC).
  4. Innovation: PPP helps in bringing innovative designs in construction projects.
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Question 33 Marks
What are the important features of public sector enterprises?
Answer
The important features of public sector enterprise are:
  1. The management and control of such enterprises rest in the hands of government.
  2. Public welfare is the main objective of such enterprises.
  3. These enterprises are set up to fulfill various social objectives of the government.
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Question 43 Marks
How are MNCs helpful in managerial development?
Answer
In order to integrate and manage worldwide operations, an MNC hires those individuals who have good professional skills and specialised knowledge. It invests huge amount on the training and development of employees. This would help managers in handling advanced technology and managing international business operations.
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Question 53 Marks
State two features of a government company that will help in knowing that a particular company is a government company.
Answer
The two features of a government company which help in categorising it are
  1. It is any company established under Indian Companies Act, where not less than 51 percent of paid up capital is held by Central Government or by any State Government or partly by Central Government and partly by 1910 one or more State Governments.
  2. In a government company, an auditor is appointed by the Central Government and the annual report is to be presented in the Parliament or State Legislature.
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Question 63 Marks
List the names of some enterprises under the public sector and classify them.
Answer
Some enterprises under the public sector are:
  1. Indian Railways- Departmental Undertaking.
  2. Indian Post and Telegraph- Departmental Undertaking.
  3. Steel Authority of India Limited (SAIL)- Government Company.
  4. Bharat Heavy Electricals Limited (BHEL)- Government Company.
  5. Life Insurance Corporation (LIC) of India- Statutory Corporation.
  6. State Trading Corporation- Statutory Corporation.
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Question 73 Marks
How does the government maintain a regional balance in the country?
Answer
The government maintain regional balance in the country by paying particular attention to those regions which were lagging behind and public sector industries were deliberately set up. This helps in creating employment opportunities and facilitate the economic development and growth of rural and backward areas. At the same time, government prevent the mushrooming growth of private sector units in already advanced areas.
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Question 83 Marks
What is the difference between Public and Private sector?
Answer
Differences between public and private sectors are summarised in the table given below:
S. No.
Basis
Public Sector
Private Sector
1.
Ownership
These are owned by the governmentcentral or state.
These are owned by individuals or group of individuals.
2.
Aim
It aims at social welfare.
It aims at profit maximisation.
3.
Efficiency
It is likely to be less efficient due to lack of autonomy and too much interference.
It is likely to be more efficient due to quick decision making.
4.
Management Control
It is subject to control from the government.
It is controlled only by business laws but not directly by the government.
5.
Accountability
These are accountable to the government.
These are accountable to the owners.
6.
Example
Railways, BHEL, LIC Ltd, SAIL, GAIL.
Reliance Industries Limited, Partnership firms, HUF, Cooperatives etc.
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Question 93 Marks
Why is the government company form of organisation preferred to other types in the public sector?
Answer
The reasons that the government-company form of organisation is preferred over the other forms in the public sector:
  1. Separate entity: Government company can sue and be sued by third party. It can hold property in its name and enter into contracts.
  2. A government company enjoys financial and administrative autonomy.
  3. It faces no undue interference by the department concerned in its operations.
  4. It provides goods and services at reasonable rates and at the same time also ensures safe marketing activities.
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3 Marks Question - Business Studies STD 11 Commerce Questions - Vidyadip