Tag: organisation of commerce and management

Questions Related to organisation of commerce and management

The activities performed by departmental undertakings are integral part of the government.

organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

  1. True

  2. False

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Correct Option: A
Explanation:

Formation: A departmental undertaking is established either as a separate full-fledged ministry or as a sub-division of a ministry (i.e. department) of the Government.

No Separate Entity:A departmental undertaking does not have an independent entity distinct from the Government.

Ultimate Responsibility with the Minister: The ultimate responsibility for the management of a departmental undertaking lies with the minister concerned; who is responsible to the Parliament or State Legislature for the affairs of the departmental undertaking. The minister, in turn, delegates his authority downwards to various other management levels, in the departmental undertaking.

Governmental Financing: The departmental undertaking is financed through annual budget appropriations by the Parliament or the State Legislature. The revenues of the undertaking are paid into the treasury.

Accounting and Audit etc. as Applicable to Government Departments:The departmental undertaking is subject to the normal budgeting, accounting and audit procedures, which are applicable to Government departments.


Departmental undertaking are independent institutions.

organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

  1. True

  2. False

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Correct Option: B
Explanation:

Departmental undertakings have not been constituted as autonomous or independent institutions and as such are not independent legal entities. 

Railways are an example of departmental undertaking.

organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

  1. True

  2. False

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Correct Option: A
Explanation:

The departmental undertaking is the oldest and traditional form of an organization of the public sector enterprise.It is organized, financed and controlled in such a manner that any other government organization. The undertaking is under the control of a minister who is responsible to the parliament.

Departmental under takings are a form of ________________ enterprises.

organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

  1. Private

  2. Public

  3. Both (A) & (B)

  4. Neither (A) & (B)

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Correct Option: B
Explanation:

The departmental undertaking is the oldest and traditional form of an organization of the public sector enterprise.It is organized, financed and controlled in such a manner that any other government organization.

Departmental Undertaking, Statutory (or Public) Corporation and Government Company are forms of enterprises used for _______.

organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

  1. private sector enterprises

  2. government sector enterprises

  3. public sector enterprises

  4. none of the above

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Correct Option: C
Explanation:

Public Enterprises, a business organization wholly or partly own by the state and controlled through a public authority. Utilities (gas, electricity, etc) broadcasting, telecommunications and certain forms of transport are examples of this kind of public enterprise.

Foundation of public enterprises in India was laid down by _______.

organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

  1. Indira Gandhi

  2. Jawaharlal Nehru

  3. Dr. Rajendra Prasad

  4. Dr. S. Radhakrishnan

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Correct Option: B
Explanation:

Foundation of public enterprises in India was laid down by Pt. Jawaharlal Nehru. He believed that the establishment of basic and heavy industry was fundamental to the development and modernisation of the Indian economy. 

State-owned enterprises differ from privately funded companies because ___________________________________________.

organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

  1. Public companies can never belong to individual shareholders

  2. Public ownership involves workers in the running of the company then in the private sector

  3. They are funded out by government, funded from taxation

  4. None of the above

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Correct Option: A
Explanation:

A company limited by shares must have at least one shareholder, who can be a director.There's no maximum number of shareholders. The price of an individual share can be any value. Shareholders will need to pay for their shares in full if the company has to shut down.

Limited liability partnership posses not more than $2$ of the following character.
$1$. Limited liability
$2$. Raise funds from public
$3$. No separation of management from owners
$4$. No Restriction on number of partners

organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

  1. $2 & 4$

  2. $1 & 2$

  3. $1 & 3$

  4. $1 & 4$

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Correct Option: B
Explanation:

A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence.

Mr. Y a member of Company XYZ makes a contract with his company XYZ _______________.

organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

  1. it is illegal.

  2. it is legal.

  3. depend in the situation of case.

  4. none of the above.

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Correct Option: B
Explanation:

XYZ parties must be in agreement (after an offer has been made by one party and accepted by the other). Something of value must be exchanged -- such as cash, services, or goods (or a promise to exchange such an item) for something else of value.

A company is having 10% share capital held by another public company and 35% held by Central Government and 55% held by people then that company is ___________________.

organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

  1. Government Company

  2. Private company

  3. Public company

  4. None of these

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Correct Option: C
Explanation:

A public company, publicly traded company, publicly held company, publicly listed company, or public limited company is a corporation whose ownership is dispersed among the general public in many shares of stock which are freely traded on a stock exchange or in over the counter markets.