Public Private and Global Enterprises Test - 1

The formalities of formation of a company can be divided into four distinct stages, which are (i) Promotion (ii) Incorporation (iii) Subscription of capital (iv)Commencement of business.

A multi National corporation (MNC) is usually a large corporation incorporated in one country which produces or sells goods or services in various countries.

Centralized control in the context of MNC's refers to the control exercised by the corporation's headquarters. In the case of MNC's the headquarters exercise (centralized) control over all its branches and subsidiaries across all the countries where the MNC has a presence.

A joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.

Statutory corporations: Statutory corporations are public enterprises brought into existence by a special act of the parliament and are governed by the provisions of the Act.

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.

Board for Industrial and Financial Reconstruction (BIFR) was set up in January, 1987 and functional with effect from 15th May 1987. The responsibility of reviving of sick public sector units lies with of the BIFR. It decides whether the sick PSU's are to be reconstructed or these should be shut down.

A “Government company” is defined under Section 2(45) of the Companies Act, 2013 as “any company in which not less than 51% of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company”

Before commencing the incorporation of a company, the directors of the company must acquire the proposed name must be approved by the Registrar of Companies in Ministry of Corporate Affairs.

There are various types of business in private sector. Private Sector is actually business organizations that owned and run in private individuals. There are various types of business in private sector, like Sole Proprietor, Partnership, Limited Companies, Cooperatives, and Joint Hindu Family.