Question 1

Which form of public sector enterprise is established under a special Act of Parliament or State Legislature?

Accepted Answer

Statutory corporations are established under a special Act of Parliament or the State Legislature. They are body corporate and are fully owned by the state. Their powers, objects, and limitations are defined by the Act itself.

Question 2

A government company is defined under which section of the Indian Companies Act, 2013?

Accepted Answer

According to Section 2(45) of the Indian Companies Act, 2013, a government company means any company in which not less than 51 percent 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 m

Question 3

Which of the following is considered the oldest and most traditional form of public sector enterprise?

Accepted Answer

Departmental undertakings are the oldest and most traditional form of organizing public enterprises. They are established as departments of the ministry and are financed and controlled directly by the government.

Question 4

Indian Railways is an example of which type of public sector enterprise?

Accepted Answer

Indian Railways is managed and financed directly by the government as a ministry department, making it a classic example of a departmental undertaking.

Question 5

Which of the following enterprises enjoys maximum autonomy in its day-to-day operations?

Accepted Answer

Government companies enjoy maximum autonomy and flexibility in their management and operational decisions compared to departmental undertakings and statutory corporations, as they are registered under the Companies Act.

Private, Public and Global Enterprises — MP Board Class 11 Business Studies Important Questions & Revision Notes