Private, Public and Global Enterprises MCQs with Answers

Question-1. A company whose ownership and control vested in holding company is known as

1. Statutory corporation
2. MNC
3. Departmental undertakings.
4. Statutory corporation

Question-2. A government company is any company in which paid up capital; held by government is not less than

1. 0.48
2. 0.51
3. 0.5
4. 0.49

Question-3. Centralised control in MNC implies control is exercised by

1. Parliament.
2. Head quarters
3. Branches
4. Subsidiaries

Question-4. Departmental undertakings are financed through

1. Issue of shares and debentures.
2. Budgetary Allocation.
3. Public loans
4. Loans from financial institutions.

Question-5. Departmental Undertakings are suitable in case of

1. Infrastructural Facilities
2. National security
3. Commercial undertakings.
4. Industrial undertakings.

Question-6. Disinvestment in PSEs implies

1. Buying shares of PSEs
2. Sale of equity shares to public
3. Investment in new areas
4. Closing down public sector

Question-7. Mergers and Monopolistic Activities is a disadvantage of which form of business enterprise?

1. Government companies.
2. Joint Ventures
3. Statutory corporation
4. Departmental undertakings.

Question-8. Reconstruction of sick public sector units is taken by

1. IDBI ( Industrial Development bank of Indi
2. BIFR ( Board of Industrial and Financial reconstruction
3. MOU ( Memorandum of Understanding)
4. FERA ( Foreign Exchange Regulation Act)

Question-9. Reserve bank of India has been set up as which type of public enterprise?

1. Government companies
2. Statutory corporation
3. MNC
4. Departmental undertakings.

Question-10. Steel Authority Of India Limited is a public enterprise. Identify this form of public enterprises

1. Multinational Company.
2. Government Company
3. Statutory Corporation.
4. Departmental Undertaking

Question-11. The oldest form of organization of public enterprises

1. Multinational Company.
2. Departmental Undertaking
3. Statutory Corporation.
4. Government Company

Question-12. The total number of industries reserved for public sector undertakings are:

1. 7
2. 3
3. 17
4. 8

Question-13. When two business enterprises agree to join together for a common objective and mutual gain, it gives rise to

1. MNC
2. Joint ventures.
3. Partnership
4. Company

Question-14. Which of the following industry is NOT reserved for public sector undertakings?

1. Railway industry.
2. Sugar industry
3. Atomic industry
4. Arms

Question-15. Which one of the following DONOT justify the objective of establishing public sector enterprises?

1. To achieve regional balance.
2. To achieve Nuclear power development in the country.
3. To achieve Nuclear power development in the country.
4. To achieve Economic growth.

Question-16. Which one of the following is a Statutory corporation?

1. Steel Authority of India.
2. Food Corporation of India
3. Hindustan Machine tools.
4. Chittranjan Locomotive Works.

Question-17. Which one of the following is a transnational Enterprise?

1. Neither a nor b.
2. Coca-Cola, Nestle
3. Coca - Cola
4. Nestle

Question-18. Which one of the following is an example of PPP?

1. Tata Sky
2. Delhi Metro Railway Corporation
3. Maruti Suzuki
4. Hero Honda

Question-19. Which one of the following is NOT a feature of departmental undertaking?

1. No financial Autonomy.
2. Separate legal entity.
3. Accountability to concerned ministry.
4. No functional autonomy.

Question-20. Which one of the following is NOT a public sector undertaking?

1. Statutory corporation.
2. Partnership
3. Departmental undertaking
4. Government companies

Question-21. Which one of the following is the disadvantage of MNCs?

1. Bringing Advanced Technology.
2. Disregard national Priorities.
3. Bringing foreign exchange.
4. Improved standard of living.

Question-22. Which one of the following public sector undertaking is established by passing a special law under Parliament?

1. Departmental Undertaking
2. Statutory corporation
3. Partnership
4. Sole proprietorship.

Question-23. A government company is any company in which the paid up capital held by the government is not less than

1. 25 percent
2. 49 percent
3. 51 percent
4. 50 percent

Question-24. According to the Indian Companies Act 1956, a government company means, any company in which not less than _______________ of the paid up capital is held by the central government or partly by central government, and partly by one or more state governments.

1. 51 percent
2. 100 percent
3. 91 percent
4. 75 percent

Question-25. All joint ventures in India require government approvals if a foreign partner or a Non Resident Indian is involved. The approval can be obtained from which of the following?

1. Either RBI or FIPB
2. RBI
3. FIPB
4. BIFR

Question-26. All public sector units were referred to _______________, to decide whether a sick unit was to be restructured or closed down.

1. BIFR
2. PSU
3. MOFA
4. MoU

Question-27. Centralised control in MNC's implies control exercised by

1. Parliament
2. Branches
3. Subsidiaries
4. Headquarters

Question-28. Disinvestments of PSE's implies

1. Buying shares of PSE's
2. Sale of equity shares to private sector/public
3. Closing down operations
4. Investing in new areas

Question-29. Indian economy is a

1. traditional economy
2. socialist economy
3. pure market economy
4. mixed economy

Question-30. PSE's are organisations owned by

1. Private entrepreneurs
2. Joint Hindu family
3. Government
4. Foreign Companies

Question-31. Reconstruction of sick public sector units is taken up by

1. NRF
2. MOFA
3. MoU
4. BIFR

Question-32. 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?

1. Cooperatives
2. Departmental undertaking
3. Statutory corporation
4. Government company

Question-33. The public sector enterprises are to invest and operate in certain spheres. Which of the following is not one of these core sectors?

1. Project management consultancies
2. Civil aviation
3. Power generation plants
4. Pharmaceuticals

Question-34. The shares of a Government Company are purchased in the name of which of the following?

1. The Managing Director of the company.
2. The Indian Government.
3. The President of India.
4. The Chief Minister of the state, where the head office of the company lies.

Question-35. Which of the following has the power of the Government and the considerable amount of operating flexibility of private enterprises?

1. All of the above
2. Departmental Undertakings
3. Statutory Corporations
4. Government companies

Question-36. Which of the following is true about statutory corporations?

1. The employees of statutory enterprises are civil servants.
2. Statutory corporations are public enterprises that come into existence by a special act of the parliament.
3. Statutory corporations are subject to the same accounting and audit procedures as are applicable to government departments.
4. Statutory enterprises are funded directly by the government treasury.

Question-37. Which of the following types of organisations has the capability of expansion of market territory and operates through a network of subsidiaries, branches and affiliates?

1. Private sector enterprises
2. MOFA
3. MNC
4. Public Sector enterprises

Question-38. Which of the following was the first successful privatisation of a Central Public Sector Undertaking, carried out by the Government?

1. MoU
2. BBUNL
3. LJMC
4. MMTC