International operations: A MNC has production, marketing and other facilities in several countries. Lack of Competition – This has led to carelessness and lethargy in their activities. Please update your name. Memorandum of Association contains the objects of the company and Articles of Association contains its rules and regulations.
Hindustan Petroleum, which engages in the refining of crude oil and marketing of petroleum products, was formed in 1974 when the government took over two refining companies belonging to the private sector. So, it can change its policies and practices according to the circumstances, Thus, it enjoys flexibility of operations. Pses are organisations owned by us. It has a separate legal entity, apart from the Govt. Easy Formation: Formation of a departmental undertaking is quite easy because it is set up by an administrative decision of the Government. This was expected to result in improved managerial efficiency and financial discipline. It is able to face market challenges and capitalize new opportunities more effectively.
Long Answer Type Questions. Actually there is government interference and the management is not free to take decisions. OTP has been sent to your mobile number and is valid for one hour. Development of infrastructure: It is the responsibility of the Government to provide infrastructural facilities to the core sector which requires huge capital investment, complex and upgraded technology etc. Pses are organisations owned by companies. Comparative Features of the various forms of Public Enterprises: Role and importance of Public Sector: 1. Units of electric power, natural gas, petroleum, etc were set up in public sector as these units required a larger base to function economically which was possible only with government resources and mass production.
Statutory Corporations, and. A departmental organisation is liable to political interference, whereas a government company is comparatively free for political interference. Appointments of Employees – Its employees are appointed according to its own rules and regulations as contained in its Memorandum and Articles of Association which contain objective and internal rules and regulations of company respectively. Stocks of all the companies mentioned above except for SBI are included in the holdings of the WisdomTree India Earnings Fund (EPI). Promote healthy business practices – These companies curb unhealthy business practices by providing goods and services at reasonable prices. NCERT Solutions class 11 Business) Studies Private, Public, Global Enterprises. Public Corporation: These kinds of organizations started to grow all around the world after the finish of WWI. After the inception of planning in 1951, the government started paying special attention to those regions which were lagging behind and public sector industries were deliberately set up in those backward regions. When international corporations invest in developing countries through joint ventures, they are able to benefit from low cost of raw materials and labour.
8. Financing – Financing is done mostly by Government. Then, you'll be expected to search available opportunities and to then individually apply for every job opening in which you are interested in. Ii) Hindustan Machine Tools Ltd (HMT). Answer: The government is responsible for developing all regions of a country.
The company logo is a familiar sight of Indian roads thanks to its network of over 14, 000 fuel stations. Plus One Business Studies Notes Chapter 3 Private, Public and Global Enterprises. Answer: These are established as departments of the ministry and are financed, managed and. C) Foreign companies (d) Private entrepreneurs. It is a financially independent corporate body created by the legislature and has a clear control over a specified area or a particular type of commercial activity.
It occupies a dominant position in the world market due to its great size. Therefore, these conditions are designed in such a way that they become competitive. Registration – There is no need to pass a separate Act in the Parliament as a government company can be established by fulfilling the requirements of the Indian Companies Act. Profit Motive: The main objective of private sector enterprises is to earn profit instead of rendering services to the society. Discuss the merits and demerits of departmental undertakings. There may be different types of public sector organizations, but many have something fairly important in common: civil service laws. Efficient management: Their Directors and top Executives are professionals and experts of different fields. Is pse a private company. Private enterprises lead to concentration of wealth and income in the hands of a few individuals.
When specialised activities are required to be performed with considerable flexibility and autonomy. This ensures public accountability of the company. Legal Entity: A statutory corporation is a separate legal entity with perpetual succession and a common seal. Types of Organizational Structure in the Public Sector. Define Joint Venture and explain its major benefits. The demerits of Government companies are: - The directors of a Government company are merely paid officials.
They play a crucial role in the economic development of the nation. Pepsi, Coca Cola, Cadbury, Sony, Susuki etc. This monopoly may be abused and may result in poor service to the public. Iii) Efficient Management. At times due to disagreement the matters are referred to the government for final decisions leading to delayed action. Since they are autonomous organizations, they can frame their own policies and procedures. Differentiate between Statutory Corporation, Departmental Undertaking and Government Company. The two Government companies are: - Bharat Heavy Electricals Ltd. - Hindustan Machine Tools Ltd. Inefficient Management: For managing a business undertaking, professionally competent managers are required while departmental undertakings are managed by civil servants. The various types of organizations in private sector are: (i) Sole Proprietorship.
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