(ii) Lack of Professional view : There is lack of devotion, dedication and systematic approach. Departmental Organisation and Government Company. A statutory corporation is formed under a Special Act of Parliament or State Legislature. Define Joint Venture and explain its major benefits. The directors and other executives are highly trained and specialize in their respective fields. Log In Sign Up. It is the oldest form of business organisation. What is a statutory organization? As there are many members it is quite possible that their interests may clash. Authority of India Limited etc. Answer:Before 1991, public sector was supposed to perform the following role in India: Question 3. It is neither answerable to shareholders nor elected by them. Departmental Organisation. (a) 51 Answer: Question 2. Though Government Company enjoys various benefits due to Government ownership and autonomy, it has following limitations: This imparts professionalism in the management of the statutory corporations. Answer: Government companies are more flexible in operations of business. It is concern with giving with profit making and service to the people. Moreover, its performance can be evaluated by the Parliament as it has public accountability. (iii) Government Ownership ; The ownership of the government company rests with Central or State Government who owns major capital of the company and as such looks after its management and control. (d) Buying shares of PSEs Answer: Why is the government company form of organization preferred to other types in the public sector? It is formed by passing a Special Act in the Parliament or in the State Legislature. Such companies damage environment of developing countries. What is the difference between Public and Private sector? A _________ is an autonomous corporate body created by the special Act of the Parliament or State legislature. It is managed by government officials or Board of Director. Parliament public employees Exercise Q.1 | Q 1.4 | Page 113 Select the correct option and rewrite the sentence: In government company minimum __________ % paid-up capital is held by the government. (b) public 6. (ii) A statutory corporation is answerable to parliament or state assembly. (c) human (A) Select the correct option and rewrite the sentence, Question 1. (a) Sale of equity shares to private sector/public (i) Global enterprises or Multinational Corporations are the Corporations which under take business activities in more than one country. (a) 10. There is no competition among them. It can appoint professional managers on high salaries. It is managed by government officials of concerned ministry. N/S Corporation: Defendant: Westmatic Corporation: Case Number: 2:2023cv05241: Filed: June 30, 2023: Court: US District Court for the Central District of California: Question 4. They do not have autonomy in decision making. Upon the filing of the complaint, the clerk shall forthwith issue a summons and deliver it for service. Capital of the Departmental Organisation comes from annual budget appropriations of the government. The company which is formed under a Special Act of Parliament or State Legislature is known as Statutory Corporation. (viii) Absence of Professionalism : There is lack of professionalism in the management of departmental organization. There is no political interference in statutory corporations. (d). Demerits of Departmental Organisation. III. In private enterprises, there is no political interference and therefore executive enjoys complete autonomy and freedom of operations. The smooth functioning of the corporation may be hampered. Multinational Corporations have to seek permission from the Government and host countries. This company provides cellular services to host countries through their respective branch offices. They make use of aggressive marketing strategies for their products. They are usually of small or medium size depending on volume of operation. In departmental organisation there is flexibility in operations. They render service in those areas where the opportunities for profit maximisation are more. (viii) Answerable to the Legislature : A statutory corporation is answerable to Parliament or State Assembly whomsoever creates it. the features of statutory corporation are. Explain merits and demerits of Statutory Corporation. 8. (c) Statutory Corporation (d) None of the above In view of Government ownership, political interference is quite common. and you can use Shaalaa.com to keep it handy for your exam preparation. (ii) Inefficiency and Corruption : There is lot of inefficiency and corruption in departmental organisation. Describe the Industrial Policy 1991, towards the public sector. The central government or state government owns the corporation. Answer: Explain the main features of Multinational Company. Further, we at Shaalaa.com provide such solutions so students can prepare for written exams. Which of the following is controlled and managed as per the provisions of the statute under which it has been formed? Question 4. Public Enterprises Form # 1. Its objectives, powers and functions are clearly defined in the Statute /Act. Departmental Organisation, Question 3. (i) Delay in Action : In Departmental organisation there is always centralization of authorities. They have production facilities in several countries. (iv) Lack of Initiative : The statutory corporation have no profit motive. 4.Easy to raise capital. 1.autonomy on paper only. (a) Parliament Global enterprises are giant both in size and operations. Substantiate this statement. (i) Advanced and Sophisticated Technology : Multinational company has large capital and sophisticated technology and infrastructure. There is less file work and less formalities to be completed before taking decisions. (vi) International Operations : Multinational Corporation play a significant role in world trade. Find out type of this company. Departmental Organisation, Question 7. The capital is contributed by the shareholders or financial institutions in several countries. (a) Comptroller and Auditor General of India There is a company which is having a registered office in Singapore and such company is having branch offices in Varanasi (India) and Hambantota (Sri Lanka). UTI, LIC, RBI, ONGC, Air India etc. Solution A statutory corporation is answerable to parliament or state assembly. (ix) Easy Formation : The formation of Government Company is easy as there is no procedural delay and legal constraints. (xii) Professional Management: A MNC employs professionally qualified personnel to handle huge funds, advanced technology and international operations. PSEs are organizations owned by If means that a large amount of foreign exchange goes out of host country. Second, Parliament accepted the socialistic pattern of society. Corporation and LLC statutes will also frequently require the filing of documents to notify the state if the foreign entity was merged out of existence, converted to another entity type, or dissolved in its home state. Answer: (i) Global enterprises or Multinational Corporations are the Corporations which under take business activities in more than one country. (x) Centralized Control: Multinational Corporation is managed by parent company. Question 2. Departmental Organisation and Government Company. Though not profit oriented like private sector, it does make reasonable profit which is used for public welfare, modernisation, renovation and development. (H) Correct the underlined word and rewrite the following sentences. Answer:Following are the different kinds of organizations that come under the private sector. Departmental undertaking cannot borrow from public. 3. It lacks flexibility which is essential for smooth operation of business. They cant take, their own decisions. (ix) Legal Status : As a body corporate, it has a separate legal entity, distinct from its members and thereby can enter into contracts and acquire property in its own name. An organisation which is answerable to parliament or state assembly whosoever creates it. Answer: Similarly Suzuki Motors of Japan and Govt, of India come together to form Maruti Udyog. Question 1. As a result it undertakes diversified and multifarious activities including manufacturing, marketing, financial, research and development. Departmental organisations are financed through annual budget of Government. This enables it to develop its business potential in developing and under developing nations where they can earn handsome profits. Employees are recruited and appointed as per the rules and regulations contained in Memorandum and Articles of Association. This is a body corporate created by the legislature with defined powers and functions and is financially independent with a clear control over a specified area or a particular type of commercial activity. It is formed and registered under Companies Act, 2013. Government companies are formed and registered under provisions of Companies Act, 2013. MNCs are characterised by possessing huge financial resources. A statutory corporation is formed under a Special Act of Parliament or State Legislature. It may also get orders for the products or services from various government departments and agencies. Definition of Statutory Corporation The corporation which is created by the Act to serve some special purposes is called statutory Corporation. Departmental Organisations are run for providing public services. Answer:It is established under a special act passed in parliament or state legislative assembly. Examples include Air India, State Bank of India, Life Insurance Corporation of India etc. What is Public Sector? The sector which aims at providing reliable services to customers. Explain Merits and Demerits of Multinational Corporation Public sector Organisation, Question 6. Coca Cola, Tata Tea and so on have global presence. (v) Research & Development: MNCs give lot of importance to research and development activities. (i) Profitability and Accountability : It works on business principles and follows commercial approach. 1. In terms of assets and turnover, many MNCs are bigger than national economies of several countries. It has to depend on budget allocated by the government. They do not have separate legal entity distinct from government. (b) 9. Question 4. The Company which is registered under Companies Act, 2013 having minimum 51% of paid up share capital held by central government or any state government or partly by central government and partly by one or more state governments is known as Government company. They do not require any special statute or registration. Special features of IPR 1956 were as follows: Question 2. Public sector organisations are those organisations which are setup by the government with the main object of providing essential services to the general public. But when we look beyond what a corporation has to what it is, it is hard to discern any area at all. Key employees satisfy two criteria: (a) their full aggregate compensation of all types from the organization (its subsidiaries, its affiliates, and disregarded groupsjoint ventures and corporations of which the nonprofit is sole member and must include in its 990 reports) exceeds . Name the business organisation, which is self-financed, delegates authority, and run by the government as an integral part of it. LIC, IFCI, SBI, UTI, Air India are the examples of public corporation. It is funded through annual budget of the government. True, Question 2. (a) Public Private Partnership (b) Joint Venture Indian Post, Indian Railway, Bank of India, Air India. They are also called as transnational or international corporations. Their precise nature varies by jurisdiction, but they are corporations owned by a government or controlled by national or sub-national government to the (in some cases minimal) extent provided for in the creating legislation. Departmental Organisation, Question 8. 51 41 31 Exercise Q.1 | Q 1.5 | Page 113 (a) 5. Answer: Question 5. (ii) Create Problem for Environment: Profit is sole objective of multinational corporation. Features of Departmental Organizations: The Board and its executives are free from political influence and .
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