NIOS Class 12 Business Studies Chapter 5 Company Form of Business Organising

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NIOS Class 12 Business Studies Chapter 5 Company Form of Business Organising

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Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 12 Business Studies Chapter 5 Company Form of Business Organising, NIOS Senior Secondary Course Business Studies for All Chapter, You can practice these here.

Company Form of Business Organising

Chapter: 5

Module – 1 Introduction to Business

INTEXT QUESTIONS 5.1 

1. If all the members of a joint stock company die in a road accident, then the company will be closed down. Do you agree with this statement? Give reasons in support of your answer.

Ans: No, since the company has perpetual existence. It can continue working with new members.  

2. Name the following with reference to a joint stock company. 

(a) The smallest unit into which the capital of company is divided.

Ans: Share. 

(b) The Act that governs the companies in India.

Ans: Companies Act 2013. 

(c) The sum total of the money contributed by the members of a joint stock company.

Ans: Share capital. 

(d) The official signature of a joint stock company.

Ans: Common seal.  

(e) The elected representatives of the members who manage the day to day affairs of the joint stock company.

Ans: Directors. 

(f) Members may come and go but the company can go on forever.

Ans: Perpetual succession.

INTEXT QUESTION 5.2 

1. Mr. Mohit has invested Rs.2 lakhs in shares of a public limited company. After one year he noticed that the company does not perform well, and the market value of its shares is going down. He thinks, if this situation continues, he will lose his Rs.2 lakhs and if required his house will be sold out to discharge his liabilities of the company. Is he thinking in the right direction? Give reasons in support of you answer. 

Ans: No. The liabilities of the shareholders are limited. Again, he has the option to transfer or sell the shares to avoid further loss. 

2. Below are given certain characteristics of Joint Stock Company. Identify which of the following characteristics is of public limited company and which one of private limited company: 

(a) There can be maximum of 200 members.

Ans: Private limited company.  

(b) It can be started with minimum of seven members.

Ans: Public limited company.  

(c) The shareholders cannot transfer their shares.

Ans: Private limited company. 

(d) It can invite the public to subscribe to its shares.

Ans: Public limited company. 

3. Below are given certain statement. Write ‘M’ at the end of the sentence, if it is the merit and ‘L’ if it is the limitation of a Joint Stock Company. 

(a) The liability of the members of Joint Stock Company is limited. 

Ans: M.

(b) The shares of the public limited company can be traded easily in the stock exchange.

Ans: M. 

(c) A number of legal formalities have to be complied with in the formation of a Joint Stock Company.

Ans: L. 

(d) The shareholders holding majority of shares take all decisions of the company.

Ans: L. 

(e) A company can spend a lot of money on research and development for improved process of production, designing and innovating new products.

Ans: M.

INTEXT QUESTIONS 5.3 

1. A Joint Stock Company is suitable where the volume of business is large, the area of operation is widespread and the risk involved is high. What are the other conditions under which a Joint Stock Company is more suitable? Write any two such conditions.

Ans: (a) Need for professional management.

(b) Huge financial requirement.

(c) More manpower requirement.  

2. There are a number of factors that determine the choice of a particular form of business organisation. Name the form of organisation i.e., either sole proprietorship or joint stock company which may be preferred keeping in mind the following factors: 

(a) It can raise huge capital and hire expert knowledge to manage a big business.

Ans: Joint stock company.  

(b) Maximum secrecy can be maintained.

Ans: Sole proprietorship. 

(c) The government control is very limited.

Ans: Sole proprietorship.

(d) Death or insolvency of a member does not affect its existence.

Ans: Joint stock company.  

(e) There is maximum flexibility in operations.

Ans: Sole proprietorship.  

INTEXT QUESTIONS 5.4 

1. State the general features of Multinational Corporation.

Ans: (a) International Operation. 

(b) Large size.

(c) Centralised control.  

2. Match the Column A with Column B: 

(a) Minimum number of members required to form: 

Ans:

3. Which of the following is not required for the commencement of a business? 

(a) Memorandum of Association. 

(b) Article of Association. 

(c) Certificate of Incorporation. 

(d) Commencement of Business Certificate. 

Ans: (d) Commencement of Business Certificate. 

4. Registration of companies is also called as: 

(a) Formation of company. 

(b) Establishment of company. 

(c) Incorporation of company.

(d) All of the above.

Ans: (c) Incorporation of company.  

5. The person who assume the task of promotion are called as: 

(a) Organiser. 

(b) Initiator. 

(c) Promoter. 

(d) Board of Director.

Ans: (c) Promoter.  

6. Which of the following documents must be duly stamped? 

(a) Prospectus. 

(b) Memorandum of Association. 

(c) Article of Association. 

(d) Memorandum and Articles of Association.

Ans: (d) Memorandum and Articles of Association. 

INTEXT QUESTIONS 5.5 

1. What is meant by public sector Enterprise? 

Ans: It refers to economic and social activities undertaken by public authorities. 

2. State whether the following statements are TRUE or FALSE and correct the statements if needed. 

(a) The objective of private sector enterprises is welfare of the customers. 

Ans: False-The objective of public sector enterprises is welfare of the customer.

(b) The public sector enterprises are managed by professional managers. 

Ans: False- The public sector enterprises are managed by the Government. 

(c) The private sector enterprises concentrate on area of public utility services.

Ans: False – The public sector enterprises concentrate on area of public utility service. 

(d) The private sector enterprises are owned and managed by private individuals.

Ans: True.  

(e) The public enterprises are totally funded by the public.

Ans: False – The public enterprises are financed from government funds and sometimes through pubic issues.

INTEXT QUESTIONS 5.6 

1. List any three services that are being taken care of by Departmental Undertakings. 

Ans: (a) Railways. 

(b) Postal Services. 

(c) Broadcasting.  

2. Identify the following and categorise them into Departmental Undertakings, Statutory Corporations and Government Companies. 

(a) Business Organisation established by the government and controlled by the Ministry concerned.

Ans: Departmental undertaking.  

(b) Organisations incorporated under a special Act of Parliament or state legislature. 

Ans: Statutory corporation. 

(c) It is managed by the government and is subject to budgetary accounting and audit control.

Ans: Government company.

(d) Organisation established by the government and registered under the companies Act.

Ans: Government company.  

3. Identify the Merits and Limitations of the departmental undertakings. Put their number in the boxes given below. 

(a) The organisation fulfils the social and economic objectives of the government.

Ans: Merits. 

(b) Lack of flexibility, hence cannot take quick decision.

Ans: Limitations. 

(c) The possibility of misuse of funds is limited.

Ans: Merits. 

(d) The organisation suffers due to inefficient and incompetent staff. 

Ans: Limitations.

(e) The organisation is responsible to the public through the parliament.

Ans: Merits. 

INTEXT QUESTIONS 5.7 

1. State the features of statutory corporation mentioning its:

(a) Incorporation.

(b) Management.

Ans: It is incorporated under a special Act of Parliament or State Legislature. 

2. Rectify the errors (if any) in the following sentences and write the correct sentence in the specified space. 

(a) Statutory Corporations are autonomous organisations.

Ans: No Change.  

(b) Statutory Corporations are registered under the Companies Act. 

Ans: Statutory corporations are incorporated under special Act of Parliament or state assemblies. 

(c) Statutory Corporations are motivated by profit.

Ans: Statutory Corporation are not motivated by profit.  

(d) The internal management of the Statutory Corporations is controlled by the Government.

Ans: The internal management of the statutory corporation is free from government control.   

(e) The capital of Statutory Corporation is provided by private industrialists. 

Ans: The capital of statutory corporation is provided by the government. 

INTEXT QUESTIONS 5.8 

1. The main objectives of establishing a government company are to ensure: 

(a) Managerial Autonomy. 

(b) ……………………………. 

(c) ………………………………. 

Ans: (b) Operational efficiency. 

(c) Competition to private sector.

2. Classify the following statements as merit (M) or limitation (L) of Government Companies and put the respective numbers in the boxes given below: 

(a) Its formation is simple and it is governed by Companies Act, 1956. 

Ans: Merits.

(b) It creates healthy competition in private sector.

Ans: Merits. 

(c) The Government Companies make delay in taking timely decisions.

Ans: Limitations. 

(d) A change in Government leads to change in rules, policies and procedures of the Government Company.

Ans: Limitations. 

(e) It has financial and administrative autonomy.

Ans: Merits.

INTEXT QUESTIONS 5.9 

1. Enumerate the major goals achieved through public sector enterprises. 

(a) _______________________________.

(b) _______________________________. 

(c) _______________________________. 

(d) _______________________________. 

(e) _______________________________.

Ans: (a) Public welfare. 

(b) Planned economic development of the country. 

(c) Regional balance. 

(d) Import substitution. 

(e) Checking concentration of economic power.

2. (a) Expand the following: 

(i) BHEL.

Ans: BHEL- Bharat Heavy Electricals Limited. 

(ii) BPCL.

Ans: BPCL- Bharat Petroleum Corporation Limited. 

(iii) GAIL.

Ans: GAIL- Gas Authority of India Limited. 

(iv) HPCL.

Ans: HPCL- Hindustan Petroleum Corporation Limited.  

(v) IOC.

Ans: IOCL- Indian Oil Corporation Limited.  

(vi) MTNL.

Ans: MTNL- Mahanagar Telephone Nigam Limited. 

(vii) NTPC.

Ans: NTPC- National Thermal Power Corporation.  

(viii) ONGC.

Ans: ONGC- Oil and Natural Gas Corporation Ltd. 

(ix) SAIL.

Ans: SAIL- Steel Authority of India Limited.

Very Short Answer Type Questions: 

1. In a Joint Stock Company what is meant by the term ‘share’?

Ans: A joint stock company is an organisation which is owned jointly by all its shareholders. A joint-stock company is a business owned by its investors, with each investor owning a share of the company based on the amount that they’ve invested. 

2. State the meaning of the term ‘Company’ as per the Companies Act 2013. 

Ans: Section 2 (20) of the Companies Act 2013 defines a “Company” as a company incorporated under this Act or under any previous company law. This definition does not clearly point out the meaning of a company. 

3. What is meant by multinational corporation? 

Ans: A multinational corporation (also termed as multinational company is one which is registered as a company in one country but carries on business in a number of other countries by setting up factories, branches or subsidiary units. Such a company may produce goods or arrange services in one or more countries and sell these in the same or other countries.

4. State the difference between a public company and a private company as far as the commencement of business is concerned. 

Ans: As per section 2 (68),” Private company” means a company having a minimum paid-up share capital of one lakh rupees or such paid-up capital as may be prescribed, and which by its articles.

5. How do you identify a public company and a private company just by seeing their names? 

Ans: In Public Ltd company, after the name of the company only Ltd is used. For Example XYZ Ltd. In case of Pvt Ltd company, Pvt Ltd is used.

6. What is meant by Public Private Partnership? 

Ans: Public Private Partnership means partnership between public sector and private sector in financing, designing and developing infrastructural facilities. In a PPP, the private sector may contribute money, expertise and technical knowhow. Infrastructures like power, transport, education, healthcare, waste management etc. are maintained through PPPs.

7. Name a form of organisation that is formed by combined efforts of two or more independent firms?

Ans: Joint venture is a form of business, where two or more independent firms contribute capital and participate in business operations, these two organisations may be private or government organisations or a foreign company.

8. Define Public Sector Enterprise. 

Ans: The term PSU or PSU Companies represents the group of Companies in India owned by the union government of India, or one of the many state or territorial governments, or both. In a PSU Company, the majority of the shares (51% or more) are owned by Central or State Government.

9. What is meant by Public Corporation? 

Ans: The Statutory Corporation (or Public Corporation) refers to such organisations which are incorporated under the special Acts of the Parliament/State Legislative Assemblies. Its management pattern, its powers and functions, the area of activity, rules and regulations for its employees and its relationship with government departments, etc.

10. State the meaning of Departmental Undertaking.

Ans: Departmental Undertakings are that form of organisation which is run as a department of the government and each such department is headed by a minister who is responsible to the Parliament and lays down the general policy for such department. 

11. What is a Government Company?

Ans: Company in which not less than 51% of the paid-up share capital is held by the central government, or by any State government or government, or partly by central government and partly by one or more state governments and includes a company which is a subsidiary company of such a government.” These companies are registered under Companies Act, 2013 and follow all those rules and regulations as are applicable for any other registered company.

12. Name any two important goals to be achieved through public enterprises.

Ans: The two important goals to be achieved through public enterprises:

(i) Social welfare.

(ii) Economic development.

1. State how the company is as an artificial person.

Ans: According to Prof. L.H. Haney as “an artificial person created by law, having separate entity, with a perpetual succession and common seal.”The company, though a juristic person, does not possess the body of a natural being. It exists only in contemplation of law. Being an artificial person, it has to depend upon natural persons, namely, the directors, officers, shareholders etc., for getting its various jobs done. Company being an artificial person cannot be incapacitated by illness and it does not have an allotted span of life. A company being an artificial person is not bestowed with the body of a natural being. Therefore, it does not have the mind or limbs of a human being. It has to work through the agency of human beings, namely, directors and officers and employees.

2. Enumerate the features of a public company. 

Ans: Features of a public company are: 

(i) It can invite the public to subscribe to its shares and debentures by open invitation. 

(ii) A minimum of seven members are required to establish a public company. There is no limit on the maximum number of its members. 

(iii) There is no restriction on the transfer of shares i.e., the shareholders are free to sell their shares to the public. 

(iv) The public company must have a minimum paid up capital of five lakhs rupees. 

(v) It must write the word “Limited” after its name. Reliance Industries Limited, Bajaj Auto Limited, Hindustan lever Limited, Steel Authority of India Limited are examples of public companies. 

3. Distinguish between private company and public company on the basis of members and paid up capital. 

Ans:

4. State the suitability of joint stock company form of business organisation. 

Ans: A joint stock company is suitable where the volume of business is large, the area of operation is widespread, the risk involved is high and there is a need for huge financial resources and manpower. It is also preferred when there is need for professional management in its operations. In certain businesses like banking and insurance, joint stock company form is the most suitable. Now-a-days, it is a preferred form for most areas of business because of the preference for operating on a large scale. 

5. What conditions are required to be fulfilled by a private company? 

Ans: The conditions are required to be fulfilled by a private company are:

(a) Restricts the right to transfer its share, if any. 

(b) limits the number of its members to 200, not including: 

(i) Persons who are in the employment of the company and. 

(ii) Persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, and where two or more persons hold one or more shares in a company jointly, they shall for the purposes of membership, be treated as a single member. 

(c) Prohibits invitation to the public to subscribe for any securities of the company.

6. Give any four features of Departmental Undertakings.

Ans: The main features of departmental undertakings are as follows: 

(i) It is established by the government and its overall control rests with the minister of such department. 

(ii) It is a part of the government and is managed like any other government department. 

(iii) It is financed through government funds. 

(iv) It is subject to budgetary accounting and audit control. 

(v) Its policy is laid down by the government and it is accountable to the legislature. 

7. Distinguish between private sector and public sector enterprises (by giving any two points of distinction). 

Ans:

8. Explain: 

(a) Fulfillment of social objectives.

Ans: The government has full control over these undertakings. As such it can fulfill its social and economic objectives. For example, opening of post offices in far off places, broadcasting and telecasting programmes, which may lead to the social, economic and intellectual development of the people, are the social objectives that the departmental undertakings try to fulfill.  

(b) Control over economic activities as merits of Departmental Undertakings. 

Ans: It helps the government to exercise control over the specialised economic activities and can act as an instrument in making social and economic policy.

9. How do public enterprises help in reducing the economic inequalities in the country? 

Ans: In India, public enterprises have been assigned the task of realising the objectives laid down in the Directive Principles of State Policy which aims to prevent concentration of economic power and growth of private monopoly and helps the government to enforce social control on trade and industry for ensuring equitable distribution of goods and services.

10. Explain any two limitations of Statutory Corporations. 

Ans: The following limitations are observed in statutory corporations: 

(a) Government Interference: It is true that the greatest advantage of statutory corporation is its independence and flexibility, but it is found only on paper for name’s sake. In reality, there is excessive government interference in most of the matters. 

(b) Rigidity: The amendments to their activities and rights can be made only by the Parliament which is a time-consuming and complicated task. This results in several impediments in business of the corporations to respond to the changing conditions and taking bold decisions. 

11. What is meant by ‘Joint Venture’? State any two of its features. 

Ans: Joint venture is a form of business, where two or more independent firms contribute capital and participate in business operations, these two organisations may be private or government organisations or a foreign company. In joint venture, business concerns join together for a specified purpose. It facilitates pooling funds, technical knowhow & managerial skills.

Features of Joint Venture:

(i) Access to advanced Technology: When two or more companies join together, there can be access to latest techniques of production. This will lead to cost reduction and improvement in quality and increased production. 

(ii) Optimum Use of Capital: Joint Venture helps in the optimum utilisation of capital. There will be least wastage of capital and other resources.

1. Explain why the joint stock company form of business organisation is advisable to undertake huge and risky projects. 

Ans: In a joint stock company the liability of its members is limited to the extent of shares held by them. This attracts a large number of small investors to invest in the company. It helps the company to raise huge capital. Because of its limited liability, a company is also able to take larger risks. This helps in making investment decisions easily. A joint stock company is suitable where the volume of business is large, the area of operation is widespread, the risk involved is high and there is a need for huge financial resources and manpower. It is also preferred when there is a need for professional management in its operations. In certain businesses like banking and insurance, joint stock company form is the most suitable. Now-a-days, it is a preferred form for most areas of business because of the preference for operating on a large scale. 

2. Describe any five characteristics of a Joint Stock Company. 

Ans: The salient features of a company are discussed below: 

(a) Incorporated association: A company must be incorporated under the Companies Act. The minimum number of members required for this purpose is seven in the case of a ‘public company’ and two in the case of a ‘private company’. Section 3 of the Companies Act allows formation of ‘One Person Company’ also.

(b) Legal entity distinct from its members: Unlike partnership, the company is distinct from its members. Hence, it is capable of enjoying rights and of being subjected to duties which are not the same as those enjoyed or borne by its members. A company can own property and deal with it the way it pleases. No member can either individually or jointly claim any ownership rights in the assets of the company during its existence or on its winding-up. A company, as a person separate is from its members and may even sue its own members for libel. 

(c) Artificial Person: The company though a juristic person, does not possess the body of a natural being. It exists only in contemplation of law. Being an artificial person, it has to depend upon natural persons, namely, the directors, officers, shareholders etc., for getting its various jobs done. However, these individuals only represent the company and accordingly whatever they do within the scope of the authority conferred upon them and in the name and on behalf of the company, they bind the company and not themselves. 

(d) Perpetual Succession: Company being an artificial person cannot be incapacitated by illness and it does not have an allotted span of life. Members may come and go but the company can go on forever. If continues even if all its human members are dead, insolvent or have left the membership. 

(e) Common Seal: A company being an artificial person is not bestowed with a body of a natural being. Therefore, it does not have a mind or limbs of a human being. It has to work through the agency of human beings, namely, directors and officers and employees. Hence, all agreement executed on behalf of company should bear the seal of the company whether agreement is valid or not would depend upon facts of each case. The common seal is a seal used by a corporation as the symbol of its incorporation. 

3. You were running your business in partnership, but now you have formed a joint stock company. What difference did you notice in respect of:

(a) legal status.

(b) liability. and 

(c) finance.

Ans: Students, do yourself. 

4. Explain any five advantages of a Multinational Corporation for the host country. 

Ans: Multinational Corporations operate also derive a number of advantages. 

These are: 

(a) Investment of Foreign Capital: Direct investment of capital by multinational corporation helps under-developed countries to speed up their economic development. 

(b) Generation of Employment: Expansion of industrial and trading activities by multinational corporation leads to creation of employment opportunities and raising the standard of living in host countries. 

(c) Use of Advanced Technology: With substantial resources multinational corporations undertake Research and Development activities which contribute to improved methods and processes of production and thus, increase the quality of products. Gradually, other countries also acquire these technologies. 

(d) Growth of Ancillary Units: Suppliers of materials and services and ancillary industries often grow in host countries as a result of the operation of multinational corporations. 

(e) Increase in Exports and Inflow of Foreign Exchange: Goods produced in the host countries are sometimes exported by multinational corporation. Foreign exchange thus earned contributes to the foreign exchange reserves of host countries.

5. State any five factors required to be considered while choosing the right form of business organisation. 

Ans: The five factors required to be considered while choosing the right form of business organisation are listed below:

(a) Ease of formation: A sole trader can commence and withdraw from business at any time at his own wish. In partnership, mutual trust and faith is very much required. Company requires many legal formalities for its formation. Sole proprietorship is therefore the easiest to form. 

(b) Availability of Large Resources: One-man business is the best in the world if the owner has enough resources and ability to manage. This statement shows that a single person is unable to undertake big business mainly because of limited resources and managerial ability. In partnership also, the financial resources of partners are limited. Therefore, only a company can raise enough capital and hire expert knowledge required for the management of a big business. 

(c) Liability or Risk: We know that liability of members is unlimited both in sole proprietorship and partnership firm and limited in case of a company and cooperative societies. Since members hesitate to undertake big risk, they prefer to invest in a company. 

(d) Stability: Stability is essential for the success of any business. The existence of a company and cooperative society does not depend on the health and wealth of its members. Sole proprietorship and partnership forms are dissolved but company form of an organisation continues irrespective of the death or insolvency of any of its members. 

(e) Flexibility: An ideal form of business must have flexibility in operations. Decisions must be taken quickly and implemented promptly for its functioning. Any rigidity in its functioning will not be beneficial for the survival and growth of a business. 

6. What is meant by public sector enterprises? State in brief its features.

Ans: The term PSU or PSU Companies represents the group of Companies in India owned by the union government of India, or one of the many state or territorial governments, or both. In a PSU Company, the majority of the shares (51% or more) are owned by the Central or State Government. Currently there are just three sectors left reserved only for the government i.e., Railway, Atomic energy and explosive material. Private sectors/ players are not allowed to operate in these sectors.

Following are the  features of public sector enterprise:

(a) State ownership and control: The public enterprises are established by the special act of Parliament, or Company Act or other acts. It is owned, and managed by the central or state government or by the local authority and controlled through a public authority.

(b) State financing: The public enterprises get their capital from Government funds ranging from more than 50% to 100% and the government has to make provision for their capital in its general budget. 

(c) Socio-economic objectives: The Public enterprises are not guided by a profit motive but have a social welfare motive. Their major focus is on providing the service or commodity to public at a reasonable price. They also generate profit and pay tax and dividend to the government. Take the case of Indian Oil Corporation or GAIL India Limited. They provide petroleum and gas at subsidized prices to the public. 

(d) Public accountability: They are accountable to the parliament for their performance. CAG reports the performance to the parliament. 

(e) Excessive Formalities: The government rules and regulations force the public enterprises to observe excessive formalities in their operations. This makes the task of management very sensitive and cumbersome. 

(f) Autonomy: Public enterprises enjoy autonomy or semi-autonomy in operations. The government does not interfere in their day-to-day functioning. 

7. How are the public sector enterprises helping in the balanced development of the Indian Economy and promoting public welfare in the country?

Ans: The Companies Act 2013 entrusted in private sector enterprises to spend at least 2% of its average profit of last three years as corporate social responsibility. Although they are contributing to the exchequer in the form of tax and in the economic growth of the country, but do not indulge in the development of social overhead capital without which the development of economy in not possible. The distribution of wealth is equitable because of that the rich get richer and the poor get poorer. Hence, the government has to play an important role as per the Directive Principles of State Policy by setting up public enterprises. The distribution of wealth is equitable because of that the rich get richer and the poor get poorer. Hence, the government has to play an important role as per the Directive Principles of State Policy by setting up public enterprises. The genesis of the origin of public enterprise is governed by the Directive Principles of State Policy which provides guiding principles for governance but is not enforceable by any court. These principles provide the social and economic guidance for Indian Democracy and pave the way for the establishment of a true welfare state. It commands the State and its instrumentalities to follow certain fundamental principles while formulating and pursuing policies. The Directive Principles envision for all citizens the equality of opportunity and adequate means of livelihood, avoiding concentration of wealth in few hands. In other words, it envisages equality, liberty and freedom.    

8. What is a Government Company? How is it different from Statutory Corporation? Give any five such distinctions. 

Ans: Section 2(45) of the companies Act 2013 defines a Government Undertaking as “any company in which not less than 51% of the paid-up share capital is held by the central government, or by any State government or government, or partly by central government and partly by one or more state government and includes a company which is subsidiary company of such a government.

” These companies are registered under Companies Act, 2013 and follow all those rules and regulations as are applicable for any other registered company. The Government of India has organised and registered a number of its undertakings as government companies for ensuring managerial autonomy, operational efficiency and provides competition to private sector. 

9. You have heard about various types of Public Sector Enterprises such as Departmental Undertakings, Public Corporations and Government Companies. Taking an example of all three give at least one name and two features of each. 

Ans: Students, do yourself.

10. You are appearing as a candidate in an interview in a Public Ltd. Co. One of the members of the interview board asks you the difference between a Public Company and a Private Company. Express your views to satisfy the interview board with the help of any five points. 

Ans: Students, do yourself.