Tag: commercial applications

Questions Related to commercial applications

Statutory corporations are not concerned with the central budget of government.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. True

  2. False

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Correct Option: A
Explanation:

Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments.It is a corporate person and has the capacity of acting in its own name.

Examples: Reserve Bank of India, State Bank of India, Life Insurance Corporation, Unit Trust of India, Employees State Insurance Corporation, Oil and Natural Gas Corporation etc. are some examples of statutory corporations.

All actions of statutory corporations are subject to many rules and regulations.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. True

  2. False

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Correct Option: A
Explanation:

In reality, a statutory corporation does not enjoy much operational flexibility. All actions are subject to many rules and regulations.

The government does not interfere in the financial matters of statutory corporations.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. True

  2. False

Show answer
Correct Option: A
Explanation:
Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments. It is a corporate person and has the capacity of acting in its own name, Reserve Bank of India, State Bank of India, Life Insurance Corporation, Unit Trust of India, Employees State Insurance Corporation, Oil and Natural Gas Corporation etc. are some examples of statutory corporations.

Statutory corporations are financially dependent.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. True

  2. False

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Correct Option: B
Explanation:

Statutory corporations enjoys financial autonomy or independence. They are not subject to budget, audit or accounting control. 


With the prior permission of the government it can even borrow the money within or outside the country.  

It prepares its own budget; and has authority to retain and utilize its earnings for its business.

Statutory corporations have the power of ________________.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. Government

  2. Public enterprises

  3. Private enterprises

  4. All of the above

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Correct Option: D
Explanation:

A statutory corporations is a valuable instrument for economic development. It has the power of the government, combined with the initiative of public and private enterprises.

Statutory corporations are free from undesirable government regulations and control.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. True

  2. False

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Correct Option: B
Explanation:

Government policy can influence interest rates, a rise in which increases the cost of borrowing in the business community. Higher rates also lead to decreased consumer spending. Lower interest rates attract investment as businesses increase production.

The policies and procedures of a statutory corporation are assigned to them by __________.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. Government

  2. Organization itself

  3. Special act of parliament

  4. Neither of the above

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Correct Option: C
Explanation:

Since statutory corporations are autonomous organizations, they frame their own policies and procedures within the powers assigned to them by the Act. The Act may, however, provide few issues which require prior approval of a particular ministry.

Government do not interfere on major decisions and huge financial decisions of the statutory corporations.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. True

  2. False

Show answer
Correct Option: B
Explanation:

Statutory corporations are body corporates formed by a special act of parliament or by the central or state legislature. It is fully financed by the government. Its powers, objects, limitations etc. are also decided by the act of the legislature.

Statutory corporations are public enterprises brought into existence by _____________.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. Public

  2. Government

  3. Special act of parliament

  4. Private enterprises

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Correct Option: C
Explanation:

Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament which defines it's powers, functions, rules and regulations etc.

Which of the following entity is created under an Act of the Parliament or an Act of the State Legislature?

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. Statutory corporation

  2. Government companies

  3. Co-operative society

  4. Limited Liability Partnership

Show answer
Correct Option: A
Explanation:

Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments.It is a corporate person and has the capacity of acting in its own name.

Examples: Reserve Bank of India, State Bank of India, Life Insurance Corporation, Unit Trust of India, Employees State Insurance Corporation, Oil and Natural Gas Corporation etc examples of statutory corporations.