Class 11th Business Studies - Private, Public and Global Enterprises Case Study Questions and Answers 2022 - 2023
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Private, Public and Global Enterprises Case Study Questions With Answer Key
11th Standard CBSE
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Reg.No. :
Business Studies
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There is an organization in most traditional form of public sector enterprises which are established by the departments of the ministry and are considered part or an extension of ministry itself. It is not autonomous or independent legal institution. It acts through the government.
(a) Which type of organization is being referred to in above lines?
(b) Explain any two merits of this organization?
(c) Explain any two demerits of this organization?(a) -
In an organization, there are 51% shares are owned by central government. It has a separate legal entity and it is established under the Indian Companies Act, 2013 and is registered and governed by the provisions of Indian Companies Act, 2013. It is established for purely business purposes and compete with the companies in private sector in true spirit.
(a) Identify the form of organization being referred to in above lines.
(b) Explain any two merits of this form of organization.
(c) Explain any two demerits of this form of organization.
(d) Give two examples of this form of organization.(a) -
It is an organization which is a public enterprise. It came into existence by a special Act of the parliament. Its powers and functions, rules and regulations governing its employees and its relationship with government departments are defined by the ActJ statute. It is a corporate body created by the legislature with defined powers and functions and is financially independent. It has a clear control over a particular type of commercial activity or a specified area. It has a separate legal entity, i.e. in the eyes of law, it is a different person.
(a) Identify the form of organization being referred to in above lines.
(b) Explain any two merits of this form of organization.
(c) Explain any two demerits of this form of organization.
(d) Give two examples of this form of organization.(a) -
Anjana and Babita are best friends. Both of them are commerce students. Anjana tells Babita that all government undertakings have common features and all organizations under Public Sector enjoys same merits and demerits. Babita tells Anjana that it is not true. There are many forms of Public Sector undertaking and each form has its own merits and demerits.
(a) Who of the two is right?
(b) Name different forms of organizations in public sector.
(c) Give three points of difference in these forms of organizations.(a) -
Public sector has a concern for social welfare and private sector has an advantage of innovation and efficiency. Private sector is crazy for profit and public sector is lacking efficiency. In this situation, it is really a problem which form of organization is suitable.
(a) Is there any form of organization which combines benefits of both? Identify and name it.
(b) Give two merits of this type of organization
(c) Give two demerits of this type of organization.(a) -
Sanjay has just completed his MBA. His father is a businessman. He suggests Sanjay also do his own business. But he claims that starting and operating a business in his age was different from now. These days there is stiff competition and consumer is the king in the market. Many other aspects of business have also changed. His father claims that things have changed but they had different kind of challenges like too many government intervention and paper formalities, lack of technology, non-availability of infrastructural facilities etc. But running a business was a challenge and still is a challenge.
(a) In the light of above discussion, which era do you think Sanjay and his father belonging to?
(b) How has business environment changed in these two eras?(a) -
In India, many multinational companies are operative but majority of them are producing goods and services for richer section. They are least bothered for weaker section of the society. In many cases they are producing goods like pedigree in a country where 26 million human beings sleep without food, resources are being allocated for production of dog food. Therefore, it seems that production should be given in the hands of Indian companies which understand Indian priorities and allocate resources accordingly.
In the light of above facts, discuss merits and demerits of multinational companies.(a)
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Answers
Private, Public and Global Enterprises Case Study Questions With Answer Key Answer Keys
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(a) Departmental Undertaking
(b) Two merits:
(i) There is complete Government Control and these are answerable to Parliament;
(ii) They are a source of Income and they are suitable from national security point of view.
(c) Two Demerits:
(i) There is lack of flexibility an delay in decision making.
(ii) There is undue government intervention. -
(a) Government Company:
(b) Merits:
(i) It is easy to form.
(ii) There is operational autonomy and it has an independent status.
(c) Demerits:
(i) Freedom is name sake only, practically, there is lot ofinterference from different government bodies concerned.
(ii) There is lack of accountability.
(d) Hindustan Machine Tools, The Hindustan Steel Limited, State Trading Corporation of India, Coal India Limited, Hindustan Aircrafts Limited etc. -
(a) Statutory Corporation
(b) Merits:
(i) They have operational Flexibility.
(ii) They have an autonomous set up and hence they are free from interference.
(c) Demerits:
(i) Autonomy of these corporations is theoretical only. Practically there is lot of interference.
(ii) Members of Board of directors are appointed by the government who are civil servants, politicians and professionals. They also face pressure from government bodies.
(d) Reserve Bank of India, Life Insurance Corporation of India, Food Corporation of India, State Financial Corporation, Damodar Valley Corporation, State Bank of India etc. -
(a) Babita is right.
(b) Different forms of organizations in public sector are:
(i) Government Company
(ii) Departmental Undertaking
(iii) Statutory Corporation
(c) Any threeBasis Statutory Corporation Departmental Undertaking Government Company Formation By a special Act of Parliament or State legislature By a ministry Under Companies Act with or without private sector participation, Ownership Wholly owned by the government Wholly owned by the government At least 51% of share capital is held by the government. Autonomy Sufficient No Autonomy Highest Legal status Separate Legal Entity No Separate Legal Entity Separate Legal Entity Public Accountability Moderate Highest Low Personnel Not Government Employees but hired under a contract of service Government Employees Not Government Employees but hired under a contract of service Funds Financed from its own resources which may inelude issue of shares and debentures. Financed from Government Budget Financed from its own resources which may include issue of shares and debentures Suitability Industrial and Commercial Undertakings Defense, services of public utility like education, health etc. Industrial and Commercial Undertakings. Example LIC, GIC, SBI, RBI etc Railways, Post and Telegraph SAIL, GAIL, BHEL etc. -
(a) Yes, Public Private Partnership
(b) Merits:
(i) PPP attracts private investment which is of utmost importance to undertake such essential projects. Involvement of private sector will bring efficiency in implementation of projects and cut down cost and time.
(ii) It helps in bringing innovative design and constructive practices. Involvement of experienced and creditworthy sponsors and commercial lenders can increase economic viability of the projects.
(c) Demerits:
(i) Cost of production increases for the government as private sector also demands its profit share for the money it invests.
(ii) Control gets divided between private and public sector. Government remains involved in all stages and private sector is responsible for more commercial functions like project design, construction, finance and operations. -
(a) Sanjay's father would have operated before 1991 and Sanjay would be operating in the era of Liberalization, globalization and privatization.
(b) Before 1991, major challenges for a business were as follows:
(i) Lack of infrastructure facilities
(ii) Too many government rules and regulations
(iii) Lack of technology
After 1991, challenges are:
(i) Too much competition
(ii) Rapidly changing technology
(iii) Frequent changes in technology
(iv) Exceptionally demanding consumers. -
MNCs do have an advantage of huge size, latest technology and huge capital investment but it has following disadvantages.
(a) It disregards National Priorities.
(b) It leads to Creation of Monopoly.
(c) It leads to Depletion Of natural resources.
(d) It creates Threat to National Sovereignty.
Case Study
