State colleges and universities are partially funded by government, unlike private universities, which rely solely on tuition dollars and donations. Free Ncert Solutions for 11th Class Business Studies Private, Public And Global Enterprises - Studyadda.com. Thus, many business opportunities may be lost. A departmental oranisation is an old type of state enterprise, whereas a statutory corporation is a modern type of state enterprise. The writer is a graduate from Columbia University, USA, in Economic Policy Management and studied economic governance in the UK. Life Insurance Corporation of India (LIC).
TEXTBOOK QUESTIONS SOLVED. Answer: It is established under a special act passed in parliament or state legislative assembly. The state has woefully lagged behind the private sector — catching up is not just a case of nuts-and-bolts productivity improvements — nobody should expect that to be easy. Memorandum of Understanding (MOU) is a term used in context of: (a) Public Private Partnership (6) Joint Venture. Characteristics of Public Sector Enterprises: - The public enterprises are owned and managed by the central or state government, or by the local authority. The control is exercised in two forms- audit of accounts of the corporation by an auditor appointed by the Government and discussion of its performance in the Parliament or State Legislature. What is a state owned organisation. Nominating these Directors sometimes becomes a political process. Private Sector: The private sector consists of business owned by individuals or a group of individuals. The various forms of public sector enterprises are described below: Type # 1. Its formation takes a long time, as it requires the passing of a special act in the parliament. A) Departmental Undertaking (6) Government Company. It is the element made by the public authority to do its public missions with other public administrations. Public sector organizations may take form of departmental undertaking, statutory corporation and a government company.
Autonomous entity – Except for a few issues/matters which require prior approval of a particular ministry as per the Act, these are autonomous organisations and frame their own policies and procedures within the powers assigned to them by the Act. On the other hand, the public sector consists of various organizations owned and managed by the government, owned either wholly or partly by the central or the state government. A postmaster may oversee multiple locations. When two businesses enter into a joint venture one of the parties' benefits from the other's goodwill already established in the market. There are certain limitations or demerits of a departmental undertaking which are as follows: 1. 5 Largest Public Companies in India's Public Sector. For example, Diesel Locomotive Works (DLW) located at Varanasi (Uttar Pradesh) is a unit of Ministry of Railways.
Give any three demerits of a public corporation. It provides for mixed ownership. A private enterprise may be small or large in size. The activities performed by these departments are an essential part of the functioning of the government because the Government functions through these departments.
For selecting managerial and other personnel, statutory corporations generally prescribe professional qualifications. Its accountability to the parliament relatively less. Answer: Following are the different kinds of organizations that come under the private sector. The Ministry of Railways is accountable for the working of DLW.
Limitations of Statutory Corporations: The various limitations of a statutory corporation are explained below: i. These were likewise enterprises including huge speculation, long growth periods in project execution, and subsequent extensive stretches of hanging tight for getting profits from ventures made. The economy may be classified into two sectors viz., private sector and public sector: 1. Ii) Partly owned government companies where government and public are joint owners but major part of the capital is provided by the government. Individuals who decided to lead this association are among the best in their fields. Though key personnel at the top management level are appointed by the concerned Government, the internal management process is designed by the corporation itself. Technology adds to efficiency and effectiveness, thus leading to reduction in costs and superior quality products.. (iv) Innovation. Pse sales and services. A public corporation established by ministry. 18 industries were placed in this category. Actually there is government interference and the management is not free to take decisions. Ownership – Minimum 51% of their paid-up capital is in the name of Central Government or State Government or partly in the name of Central Government and partly in the name of a State Government. Some of the types of public sector are:- 1. Most of the Governments have deficit financing leaving much lower scope for allocating funds to departmental undertakings.
Joint Ventures: When two or more independent firms together establish a new enterprise by pooling their capital, technology and expertise, it is known as a joint venture. Appointments of Employees – Its employees are appointed according to its own rules and regulations as contained in its Memorandum and Articles of Association which contain objective and internal rules and regulations of company respectively. Most businesses enter into joint ventures to get access to an advanced technology which is not possible or economically feasible to be developed on their own. The appointment of CEOs and other top officials who are primarily responsible to set the direction of the organisations should be through an open, transparent and merit-based process. In the manufacturing sector, there was a sharp fall in outstanding credit to petroleum, petrochemical and fertiliser companies. Pses are organisations owned by the church. The government also makes efforts to prevent mushrooming growth of private sector units in already advanced regions. Can the public sector companies compete with the private sector in terms of profits and efficiency? Accounting and audit – An auditor is appointed by the Central Government and the Annual Report is to be presented in the parliament or the state legislature however these companies are exempted from the accounting and audit rules and procedures. Protection of Public Interest – A Government company often works in a competitive environment.
Easy Formation – Formation of a Government company is much easier as compared to a public corporation because the company is formed under the Companies Act. Service Motive: A statutory corporation has a service motive and not a profit motive, though in the process of doing business it may earn profit. Civil Service Protections and Government. BIFR stands for: (a) Bureau of Industrial and Financial Reconstruction. Administrative Autonomy – These do not have any administrative autonomy, from government department. This leads to increase in cost of projects. Public sector companies are managed by government officials who may not be professionally trained while private sector companies are run and managed by professional managers. Partnership: Partnership is the relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all. In practice, the directors of a government company are not answerable for their action either to the parliament or to the general public. Types of Organizational Structure in the Public Sector. A state enterprise is usually large in size. Main documents – The Memorandum and Articles of Association are the main documents of the company. Which of the following is an example of Statutory Corporation?
Correct Answer - A. of equity shares of public. Vi) Established Brand Name. These are engaged in developing new products and superior design of existing products. The State Bank of India had revenues of $47. Public Accountability – A Government company has public accountability. So, they spend more time in pleasing the ministers, top Government officials and political leaders than in managing the business of the company. Motivation for Employees: A statutory corporation is free to decide its service conditions. Suitability of a Government company is in the following situations: 1.
Government Management. Than a public corporation and a government company. Private sector employers are more likely to offer telecommuting options, a casual dress code, bonuses, as well as free snacks. The Act defines the objects and privileges of these statutory corporations. However, you may find the wheels turn much more slowly with a public sector position. Indian Oil Corporation Ltd. (BSE: 530965, NSE: IOC). Increased efficiency: Involvement of private sector will bring efficiency in implementation of projects and cut down cost and time. Civil Service Code – A departmental undertaking is managed by civil servants whose methods of recruitment and service conditions are the same as for other civil servants. Discuss the merits and demerits of joint venture. The various types of organizations in private sector are: (i) Sole Proprietorship.
The revenue earned by the enterprise goes directly to the treasury and hence is a source of income for the Government. Lots of Political Interference – These undertakings are under the supervision of a minister who is politically active and gives priority to political party over the country. Public enterprises also ensure promotion of such industries. They can also borrow from financial institutions and international banks. When two or more businesses join hands for mutual benefit and common purpose, it is called: (a) Public Private Partnership (b) Joint Venture. The various forms of organisation are sole proprietorship, partnership, joint Hindu family, cooperative and company. Linking the incentive system with performance, efficiency, productivity, and consumer satisfaction may be another important initiative in the domain of HR. Bank of India posted a 26% y-o-y rise in net profit for the quarter ended September and aims to bring…. It leads to inefficiency in operations. These can sue and be sued. Merits of Government Companies: The various merits of the government companies are described below: i.
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