Maharashtra Board 11th OCM Important Questions Chapter 5 Forms of Business Organisation – II

Balbharti Maharashtra State Board 11th OCM Important Questions Chapter 5 Forms of Business Organisation – II Important Questions and Answers.

Maharashtra State Board 11th Commerce OCM Important Questions Chapter 5 Forms of Business Organisation – II

Select the correct option and rewrite the sentence

Question 1.
Multinational corporations have a network of subsidiaries in ………………
(a) several countries
(b) home countries
(c) state only
Answer:
(a) several countries

Question 2.
A multinational corporation operates in ………………..
(a) only one country
(b) developed countries
(c) all over the world
Answer:
(c) all over the world.

Question 3.
A multinational corporation is also known as ……………….
(a) global corporation
(b) regional corporation
(c) national corporation
Answer:
(a) global corporation

Question 4.
Government company is registered under …………………
(a) Special legislation
(b) Companies Act, 2013
(c) Banking Act 1949
Answer:
(b) Companies Act, 2013

Question 5.
Private sector enterprise is owned, managed and controlled by the …………………
(a) Individuals
(b) Government
(c) Board of directors
Answer:
(a) Individuals

Question 6.
Public sector enterprise is owned, managed and controlled by …………………
(a) individuals
(b) Government
(c) Board of Directors
Answer:
(b) Government

Question 7.
Private Enterprises invest their funds in …………………
(a) areas of social benefit
(b) areas where return is maximum
(c) any area
Answer:
(b) areas where return is maximum

Question 8.
Atleast ………………… of the capital of Government company is held by the Government.
(a) 51%
(b) 71%
(c) 50%
Answer:
(a) 51%

Question 9.
Public enterprises are financed by …………………
(a) Government
(b) private businessmen
(c) political leaders
Answer:
(a) Government

Question 10.
The nature and power of a statutory corporation is defined in …………………
(a) Indian Companies Act, 2013
(b) Special Statute
(c) Prospectus
Answer:
(b) Special Statute

Question 11.
……………….. is formed by a Special Act of Parliament.
(a) Private Enterprise
(b) Government Company
(c) Statutory Corporation
Answer:
(c) Statutory Corporation

Question 12.
Public enterprises are generally not runned on …………………
(a) service motive
(b) commercial lines
(c) profit motive
Answer:
(c) profit motive

Question 13.
………………… is an example of Public Corporation.
(a) Post and Telegraph
(b) LIC
(c) BHEL
Answer:
(b) LIC

Question 14.
………………… is an example of departmental undertaking.
(a) LIC
(b) Reliance
(c) Post and Telegraph
Answer:
(c) Post and Telegraph

Question 15.
………………… is the oldest form of Public Sector Organisation.
(a) MNC
(b) Government Company
(c) Departmental Undertaking
Answer:
(c) Departmental Undertaking

Question 16.
Departmental organisations are accountable to ………………… for all their actions.
(a) Government
(b) Ministry
(c) Public
Answer:
(b) Ministry

Question 17.
The technological gap between the developed and developing countries is bridged by the …………………
(a) MNC
(b) Government Company
(c) Private enterprises
Answer:
(a) MNC

Match the pairs

Question 1.

Part A	Part B
(a) Departmental Organisation	(1) Private sector
(b) Statutory Company	(2) Operates globally
(c) Multinational Corporation	(3) Profit oriented
(d) Public sector Organisation	(4) Objective based agreement
(e) Government Company	(5) Service oriented
	(6) Established by passing a special act
	(7) 51% paid up capital by Government
	(8) Sole trading
	(9) Owned by government
	(10) Temporary partnership

Answer:

Part A	Part B
(a) Departmental Organisation	(9) Owned by government
(b) Statutory Company	(6) Established by passing a special act
(c) Multinational Corporation	(2) Operates globally
(d) Public sector Organisation	(5) Service oriented
(e) Government Company	(7) 51% paid up capital by Government

Question 2.

Part A	Part B
(a) Railways	(1) Statutory Corporation
(b) Government Company	(2) Decentralisation of control
(c) Multinational Company	(3) Not answerable to the Legislature
(d) Unit Trust of India	(4) National Thermal Power Corporation (NTPC)
(e) Statutory Corporation	(5) Departmental organisation
	(6) Centralised control of their branches
	(7) Answerable to the Legislature
	(8) Bajaj Electricals Pvt. Ltd.
	(9) Owned by private individuals

Answer:

Part A	Part B
(a) Railways	(5) Departmental organisation
(b) Government Company	(4) National Thermal Power Corporation (NTPC)
(c) Multinational Company	(6) Centralised control of their branches
(d) Unit Trust of India	(1) Statutory Corporation
(e) Statutory Corporation	(7) Answerable to the Legislature

Give one word / phrase / term

Question 1.
A company which is incorporated in one country and has business units in several countries.
Answer:
Multinational Corporation

Question 2.
A company where 51% of paid up capital is held by the Central or State government.
Answer:
Government company

Question 3.
Autonomous corporate body created by Special Act of Parliament.
Answer:
Statutory Corporation.

State True or False

Question 1.
Public enterprises are owned, managed and controlled by public.
Answer:
False

Question 2.
Multinational companies have branches throughout the world.
Answer:
True

Question 3.
Public enterprises have public accountability.
Answer:
True

Question 14.
Departmental organisations have right to borrow funds from outside.
Answer:
False

Question 5.
The main aim of private sector is to render services to the public.
Answer:
False

Question 6.
Government Company is registered under special legislation.
Answer:
False

Question 7.
Statutory Corporations need not follow the Companies Act, 2013.
Answer:
True

Question 8.
Government Companies enjoy legal status.
Answer:
True

Question 9.
Government interference is more in public sector enterprises.
Answer:
True

Question 10.
Multinational Companies help the host companies.
Answer:
True

Find the odd word out

Question 1.
National Thermal Power Corporations, Bharat Heavy Electricals Limited, Hindustan Machine Tools, LIC.
Answer:
LIC

Question 2.
Bata India, RBI, Infosys, Tata Motors.
Answer:
RBI

Question 3.
Sole Trading Concern, Joint Hindu Family Firm, Statutory Corporation, Joint Stock Company.
Answer:
Statutory Corporation

Question 4.
Unit Trust of India, Shipping Corporation of India, Indian Space Research Organisation, Yes Bank.
Answer:
Yes Bank

Question 5.
Samsung, IBM, Amazon, Patanjali.
Answer:
Patanjali

Question 6.
National Tiger conservation Authority, Securities and Exchange Board of India, State Bank of India, Indian Post and Telegraphs.
Answer:
SBI

Question 7.
Flipkart, Google, HP, Canara Bank.
Answer:
Canara Bank

Question 8.
Oriental Bank, Vijaya Bank, Andhra Bank, HDFC Bank.
Answer:
HDFC Bank

Question 9.
MTNL, BSNL, Vodofone, Air India.
Answer:
Air India

Question 10.
Air India, Indian Airlines, Spicejet.
Answer:
Spicejet

Question 11.
Tata, Reliance, Airtel, BSNL.
Answer:
BSNL

Question 12.
Coca Cola India, Hindustan Unilever, IBM, SAIL.
Answer:
SAIL

Question 13.
Railways, Post and Telegraph, Defence, RBI.
Answer:
RBI.

Complete the sentences

Question 1.
The main aim of private sector enterprises is to earn …………………
Answer:
profit

Question 2.
The main aim of public sector enterprises is to render …………………
Answer:
service

Question 3.
A government company may be a private limited company or a …………………
Answer:
public limited company

Question 4.
A company formed by passing a special act in the parliament or legislature is ………………… company.
Answer:
statutory

Question 5.
MNCs have the need of ………………… capital.
Answer:
huge

Question 6.
Profit maximization is the ultimate goal of ………………… sector.
Answer:
private

Question 7.
Departmental organisations are accountable to ………………… for all their actions.
Answer:
ministry (Parliament)

Question 8.
Departmental undertakings are a source of revenue to ………………… treasury.
Answer:
Government

Question 9.
Reserve Bank of India is an example of …………………
Answer:
Statutory Corporation

Question 10.
A company which is incorporated in one country and has business units in several countries is called …………………
Answer:
Multinational-Corporation

Question 11.
Post and Telegraph is an example of …………………
Answer:
Departmental Undertaking.

Select the correct option

Question 1.
(Multinational Corporation, Private Sector Organisations, Departmental Organisations, Statutory Corporation, Government Company)

Part A	Part B
(1) 51% paid up capital held by Central Government	…………………
(2) ………………..	Autonomous Corporate Body
(3) Owned by Private individuals	…………………
(4) ………………..	Operates Globally
(5) ……………….	Controlled by Concerned Ministry

Answer:

Part A	Part B
(1) 51% paid up capital held by Central Government	Government Company
(2) Statutory Corporation	Autonomous Corporate Body
(3) Owned by Private individuals	Private Sector Organisation
(4) Multinational Corporation	Operates Globally
(5) Departmental Organisations	Controlled by Concerned Ministry

Question 2.
(Statutory Corporation, Government Company, Multinational Corporation, Departmental Organisation)

Part A	Part B
(1) BATA India	………………….
(2) ………………….	Post Office, Railways, etc.
(3) Reserve Bank of India	…………………
(4) ………………….	BHEL

Answer:

Part A	Part B
(1) BATA India	Multinational Corporation
(2) Departmental Organisation	Post Office, Railways, etc.
(3) Reserve Bank of India	Statutory Corporation
(4) Government Company	BHEL

Correct the underlined word and rewrite the following sentences

Question 1.
Multinational Corporation is relatively free from Red tapism.
Answer:
Statutory Corporation is relatively free from Red tapism.

Question 2.
Infosvs is an example of Government Company.
Answer:
HMT is an example of Government Company.

Question 3.
Private Sector aims at providing services to customers.
Answer:
Private Sector aims at profit maximisation.

Question 4.
Private sector is owned by Government.
Answer:
Private sector is owned by individuals.

Question 5.
Defence Industry is an example of Statutory Corporation.
Answer:
Reserve Bank of India is an example of Statutory Corporation.

Question 6.
Departmental Organisation is financed by shareholders.
Answer:
Departmental Organisation is financed by annual budget.

Question 7.
Departmental Organisation has separate Legal entity.
Answer:
Government Company has separate Legal entity.

Question 8.
MNC operates at national level.
Answer:
MNC operates at global level.

Justify the following statements

Question 1.
Departmental organisations do not have right to borrow funds from outside.
Ans:

1. Department organisations is financed by annual appropriation from the treasury and its revenue also goes into Treasury.
2. This enterprise cannot borrow money from the public as enterprise is financed by the government and hence the government controls its affairs. Hence, answerable for its performance to the Parliament.
3. Government consent is required to borrow from public, if need arises.
4. Thus, Departmental organisations have no right to borrow funds from outside.

Question 2.
Statutory Corporations need not follow the Companies Act, 2013.
Ans:

1. Statutory corporation is formed or created by passing a Special Act in Parliament or State legislature.
2. The Act or Special Statute which is passed in the Parliament defines it powers, objectives, aims, duties, functions, rules and regulations governing its employees and its relationship with the Government department.
3. Statutory Corporation prepare its own budgets and recruits employees on the terms and conditions determined by its Board of Directors.
4. As Statutory Corporation is regulated as per the provisions made in Special Act of Parliament or State Legislature, it need not follow the provisions and directives given as per the Indian Companies Act, 2013. They need not have a Memorandum of Association or Articles as they have to strictly follow the Special statute.
5. Thus, Statutory corporation need not follow the Companies Act.

Question 3.
Government Companies enjoy legal status.
Answer:

1. Government Company is one in which not less than 51% of the share capital is held by the Central Government or State Government or part by Centre and part by State.
2. Government Companies are registered under Indian Companies Act, 2013 and its working is as per the Act and hence has distinct legal entity apart from the government,
3. Being a company registered under 2013 Act, it has all features like common seal, limited liability, stability, etc. It can enter into contracts and acquire property in its own name.
4. Thus, Government Company enjoys legal status or management is in the hands of Board of Directors and ownership is with Government.

Question 4.
Government interference is more in public sector enterprises.
Answer:

1. Public enterprises are accountable to the public and Government as the money is financed by the annual budget.
2. Public sector is welfare oriented and not profit oriented as public sector carries out work which is essential in the larger interest of public like making roads, bridges, flyovers, etc.
3. Various Parliamentary committees are set up to scrutinise the working of public enterprises and the reports are tabled before the Parliament.
4. The PSE’s do not enjoy financial autonomy, operational or administrative autonomy.
5. Thus, more government interference in public sector enterprises.

Question 5.
Multinational Companies help the host companies.
Answer:

1. MNC’s offer growth opportunities for domestic firms. They help domestic producers to enter the global markets through their international network of production and marketing.
2. MNC’s provide ready markets for raw materials or semi-finished goods produced by the local producers in the host countries.
3. The entry of MNC’s in the domestic market tends to break the monopoly of the selected few domestic companies. Due to this consumers in the host countries are benefited.
4. MNC’s help host countries by providing new sophisticated technology.
5. Thus, due to their global presence and superior marketing skills, MNC’s are in a position to help the host companies.