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Public Private and Global Enterprises Test - 19

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Public Private and Global Enterprises Test - 19
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Weekly Quiz Competition
  • Question 1
    1 / -0
    Which of the following government departments does not have a separate legal identity?
    Solution
    Departmental undertakings are the oldest form of public sector enterprises. A departmental undertaking is considered as one of the departments of government. It has no separate legal existence from the government. 
  • Question 2
    1 / -0
    Which type of public-sector enterprises allow private individuals to own shares?
    Solution
    A government company is wholly or partly owned by the government. It may include private individuals as shareholders. Departmental Undertakings and Statutory Corporations are wholly owned and controlled by the government.
  • Question 3
    1 / -0
    How are the powers and objectives of a statutory corporation defined?
    Solution
    A statutory corporation is a body of corporate formed by a special Act of Parliament or by the central or state legislature. It is fully financed by the government. Its power, objects, limitations etc.are also decided by the Act of the legislature.
  • Question 4
    1 / -0
    Which of the following is not true about a departmental undertaking?
    Solution
    A departmental undertaking is direct under the overall control of anyone ministry or department of the government, hence, there is no autonomy of decision making.
    The performance of departmental undertaking is reviewed in the parliament, so, there is public accountability. 
    It has no separate legal existence from the government, hence, its employees are known as government servants.  
  • Question 5
    1 / -0
    The oldest form of a public enterprise is ___________________.
    Solution
    A departmental undertaking is the oldest form of public sector enterprise. It is considered as one of the departments of government. It has no separate legal existence from the government.
  • Question 6
    1 / -0
    Employees of ___________ are considered as government employees.
    Solution
    The employees of a departmental undertaking are civil servants and are recruited and compensated as per the government regulation. Departmental undertaking operates under the overall control of central or state government.
  • Question 7
    1 / -0
    Which of the following is most suitable where national security is concerned?
    Solution
    Where national security is of utmost importance, a departmental undertaking is the best form of public sector organization as the government's control on such enterprise is very effective because it is direct and centralized. The government has full control over it and can maintain the secrecy of its operations.
  • Question 8
    1 / -0
    Which of the following has the capability of expansion beyond the domestic territory and operate through a network of subsidiaries, branches, and affiliates?
    Solution
    A multinational corporation (MNC) is a body corporate that operates in multiple countries through a network of subsidiaries, branches, and affiliates in their host countries. Example:- Coca-Cola, Hyundai, etc.
  • Question 9
    1 / -0
    Name the type of corporation in which the government owns at least 51 percent of the shares.
    Solution
    Government company means any company in which at least 51 percent of the paid-up share capital is held by the central or state government or partly by central and state governments. These companies are governed by the provisions of the Companies Act, 2013.
  • Question 10
    1 / -0
    Which of the following enterprises operates as a Public Corporation?
    Solution
    A public corporation is a body corporate formed by a special act of the parliament or by the state legislature. Its powers, objects, limitations, etc. are governed by such statute. For example - Air India, State Bank of India, Life Insurance Corporation of India, Food Corporation of India, Oil and Natural Gas Corporation, etc.
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