Business Studies Chapter 3

Assertion (A): Departmental undertakings do not have a separate legal identity.
Reason (R): They are directly under the control of the concerned ministry and part of the government itself.

• Both A and R are true, and R is the correct explanation of A.

• Both A and R are true, but R is not the correct explanation of A

• A is true, but R is false.

• A is false, but R is true.

Assertion (A): Public sector enterprises are owned and operated by the government.
Reason (R): They aim to provide services to the public and generate revenue for the government.

• Both A and R are true, and R is the correct explanation of A.

• Both A and R are true, but R is not the correct explanation of A.

• A is true, but R is false.

• A is false, but R is true.

Assertion (A): Private sector companies are primarily driven by profit motives.
Reason (R): They are accountable to their shareholders and investors.

• A is false, but R is true.

• Both A and R are true, and R is the correct explanation of A.

• Both A and R are true, but R is not the correct explanation of A.

• A is true, but R is false.

Assertion (A): A statutory corporation is created by an act of the legislature.
Reason (R): It has a separate legal identity and can sue or be sued in its own name.

• A is false, but R is true.

• A is true, but R is false.

• Both A and R are true, but R is not the correct explanation of A.

• Both A and R are true, and R is the correct explanation of A.

• One limitation of a departmental undertaking is:
  
  

• • a) Lack of government control

• • 
    b) Political accountability

• • 
    c) Excessive autonomy

• • d) Inability to raise funds

Assertion (A): Public-private partnerships (PPPs) are collaborations between government and private sector entities.
Reason (R): They are established to leverage private investment for public projects.

• Both A and R are true, but R is not the correct explanation of A.

• A is true, but R is false.

• A is false, but R is true.

• Both A and R are true, and R is the correct explanation of A.

Assertion (A): A government corporation is created by a special act of the legislature.
Reason (R): It operates independently of the government and has its own financial resources.

• Both A and R are true, but R is not the correct explanation of A.

• Both A and R are true, and R is the correct explanation of A.

• A is true, but R is false.

• A is false, but R is true.

• One advantage of a statutory corporation is:
  
  

• • 
    b) Limited liability for shareholders

• • a) Greater operational flexibility

• • 
    c) Direct government control

• • d) Enhanced public accountability