Private, Public and Global Enterprises MCQs with Answers

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

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

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

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

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

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

Question-4. Departmental undertakings are financed through

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

Question-5. Departmental Undertakings are suitable in case of

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

Question-6. Disinvestment in PSEs implies

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. 49 percent
2. 51 percent
3. 50 percent
4. 25 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. 100 percent
2. 91 percent
3. 75 percent
4. 51 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. RBI
2. FIPB
3. BIFR
4. Either RBI or FIPB

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

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

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

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

Question-28. Disinvestments of PSE's implies

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

Question-29. Indian economy is a

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

Question-30. PSE's are organisations owned by

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

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

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

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

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

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

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

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

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

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

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

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. MOFA
2. MNC
3. Public Sector enterprises
4. Private 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. BBUNL
2. LJMC
3. MMTC
4. MoU