Public private and global enterprise Quiz-2

Disinvestments of PSE’s implies

• Sale of equity shares to private sector/public

• Closing down operations

• Investing in new areas

• Buying shares of PSE’s

Answer explanation

Disinvestments of PSE's refers to the sale of equity shares to the private sector or public, highlighting the correct choice.

PSE’s are organisations owned by

• Joint Hindu family

• Government

• Foreign Companies

• Private entrepreneurs

Answer explanation

PSEs are organizations owned by the Government. They are not owned by Joint Hindu family, Foreign Companies, or Private entrepreneurs.

A government company is any company in which the paid up capital held by the government is not less than

• 49 percent

• 51 percent

• 50 percent

• 25 percent

Answer explanation

A government company is a company where the government holds at least 51 percent of the paid-up capital, making it the correct choice.

Indian economy is a

• socialist economy

• pure market economy

• mixed economy

• traditional economy

Answer explanation

The Indian economy is a mixed economy, which means it combines elements of both socialism and a market economy. This allows for a balance between government intervention and private enterprise, promoting economic growth and social welfare.

Which of the following enterprises may benefit the most by an established brand name at the time of incorporation?

• Departmental Undertaking

• Government Company

• Statutory corporations

• Joint Venture

Answer explanation

A joint venture may benefit the most from an established brand name at the time of incorporation because it can leverage the reputation and recognition of the existing brands involved.

The shares of a Government Company are purchased in the name of which of the following?

• The Indian Government.

• The President of India.

• The Chief Minister of the state, where the head office of the company lies.

• The Managing Director of the company.

Answer explanation

The shares of a Government Company are purchased in the name of The President of India because the President represents the government and holds the highest authority in the country.

The funding of which of the following enterprise comes directly from the government treasury, is under an annual appropriation from the budget of the government and the revenue earned by it is also paid into the treasury?

• Departmental undertaking

• Statutory corporation

• Government company

• Cooperatives

Answer explanation

Departmental undertaking is directly funded by the government treasury, with revenue paid into the treasury. It is the correct choice.

Which of the following is true about statutory corporations?

• Statutory corporations are public enterprises that come into existence by a special act of the parliament.

• Statutory corporations are subject to the same accounting and audit procedures as are applicable to government departments.

• Statutory enterprises are funded directly by the government treasury.

• The employees of statutory enterprises are civil servants.

Answer explanation

Statutory corporations are public enterprises established by a special act of parliament.

Reconstruction of sick public sector units is taken up by

• MOFA

• MoU

• BIFR

• NRF

Answer explanation

The reconstruction of sick public sector units is taken up by BIFR, which stands for Board for Industrial and Financial Reconstruction. BIFR is responsible for reviving and rehabilitating financially distressed public sector units.

Centralised control in MNC’s implies control exercised by

• Branches

• Subsidiaries

• Headquarters

• Parliament

Answer explanation

Centralised control in MNC's is exercised by the headquarters, which makes decisions and directs the branches and subsidiaries.