CBSE Class 11 - Business Studies - Chapter 3 - Private, Public and Global Enterprises - Questions and Answers (#cbsenotes)(#eduvictors)

Class 11 - Business Studies

Chapter 3 - Private, Public and Global Enterprises 

Questions and Answers 

Q1: Name the two forms of business organisation in an Indian economy.

Answer:

1. Public Sector
2. Private Sector

Q2: What is the private sector?

Answer: The private sector consists of business owned by individuals or a group of individuals.


Q3: What is the public sector?

Answer: The public quarter consists of various firms owned and controlled through the government. These companies may also both be in part or thoroughly owned by the central or state government.


Q4: What is the main objective of Industrial policy?

Answer: The main objective of any industrial policy is to augment the industrial production and thereby enhance the industrial growth which leads to economic growth by:

• optimum utilization of resources; 
• modernization; 
• balanced industrial development; 
• balanced regional development;
• balanced development of basic and consumer industry; 
• coordinated development of large as well as small, medium and cottage enterprises;
• determination of the area of operation under private and public sector; 
• enhance cordial relations between workers and 
• management and proper utilization of domestic / foreign capital.

Q5: What are different industrial policy resolutions?

Answer: 

• In the Industrial Policy Resolution 1948, the Government of India had specified the approach towards development of the industrial sector.
• The Industrial Policy Resolution, 1956 had also laid down certain objectives for the public sector to follow so as to accelerate the rate of growth and industrialization.
• The 1991 industrial policy was radically different from all the earlier policies where the government was deliberating disinvestment of the public sector and allowing greater freedom to the private sector.

Q6: What are Departmental Undertakings? Give two examples of such undertakings.

Answer: These enterprises are established as departments of the ministry and are considered as a part or an extension of the ministry itself. 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.

Q7: List the salient features of Departmental Undertakings.

Answer:

• The investment of these establishments come from the Government Treasury and are an annual appropriation from the finances of the Government.
• Part of Government-Central or State  
• Under the direct control of the ministry 
• Funds come directly from Govt. Treasury 
• Employees are Govt. employees.
• Subject to accounting and audit controls applicable to other Government activities.
• They are accountable to the ministry

Q8: List three merits of Departmental Undertakings.

Answer:

1. Effective Control especially when National Security is concerned.
2. Public Accountability
3. Revenue earned by the enterprise goes directly to the treasury and hence is a source of income for the Government.

Q9: What are the limitations of Departmental Undertakings?

Answer: 

1. No flexibility, which is essential for the smooth operation of a business. 
2. Delay in decision making
3. Overcautious bureaucracy and red-tapism
4. A lot of political interference through the ministry
5. Political Interference
6. Usually insensitive to consumer needs.

(In progress...)

☛See also:
Ch1: Nature and Purpose of Business (MCQs)
Ch1: Characteristics of Business
Ch1: Business vs Profession vs Employment
Ch1: Nature and Purpose of Business - Classification Of Commerce
Ch2: Forms of Business Organization

Ch4: Business Services (Introduction)
Ch4: Banks and Functions Of Commercial Banks
Ch4: Insurance Services
Ch10: International Business-I (NCERT Answers)