CBSE Class 11 Business Studies – MCQ and Online Tests – Unit 3 – Private, Public and Global Enterprises
Every year CBSE schools conducts Annual Assessment exams for 6,7,8,9,11th standards. These exams are very competitive to all the students. So our website provides online tests for all the 6,7,8,9,11th standard’s subjects. These tests are also very effective and useful for those who preparing for any competitive exams like Olympiad etc. It can boost their preparation level and confidence level by attempting these chapter wise online tests.
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CBSE Class 11 Business Studies – MCQ and Online Tests – Unit 3 – Private, Public and Global Enterprises
Question 1.
The shares of a Government Company are purchased in the name of which of the following?
(a) The Indian Government.
(b) The President of India.
(c) The Chief Minister of the state, where the head office of the company lies.
(d) The Managing Director of the company.
Answer
Answer: (b) The President of India.
Explanation:
This is correct. The shares of a Government Company are purchased in the name of the President of India.
Question 2.
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?
(a) Departmental undertaking
(b) Statutory corporation
(c) Government company
(d) Cooperatives
Answer
Answer: (a) Departmental undertaking
Explanation:
This is the correct answer. The funding for a departmental undertaking 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.
Question 3.
A government company is any company in which the paid up capital held by the government is not less than
(a) 49 percent
(b) 51 percent
(c) 50 percent
(d) 25 percent
Answer
Answer: (b) 51 per cent
Question 4.
Indian economy is a
(a) socialist economy
(b) pure market economy
(c) mixed economy
(d) traditional economy
Answer
Answer: (c) mixed economy
Expalnation:
India is a mixed economy.
Question 5.
Which of the following enterprises may benefit the most by an established brand name at the time of incorporation?
(a) Departmental Undertaking
(b) Government Company
(c) Statutory corporations
(d) Joint Venture
Answer
Answer: (d) Joint Venture
Expalnation:
This is the correct answer. When two parties enter a joint venture one of the parties benefits from the other’s goodwill, which has already been established in the market. With an established brand name there is a ready market waiting for the product to be launched. A lot of investment is saved in the process.
Question 6.
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?
(a) MOFA
(b) MNC
(c) Public Sector enterprises
(d) Private sector enterprises
Answer
Answer: (b) MNC
Explanation:
Multi National Corporations are global enterprises that undertake expansion of market territories extending beyond the physical boundaries of their own country. They operate through a network of subsidiaries, branches and affiliates in their host countries.
Question 7.
Which of the following statements regarding recent Government policy measures towards the public sector is/are true?
a. Restructuring and reviving potentially viable PSU’s.
b. Closing down of those PSU’s that can not be revived.
c. Bringing down government equity in all non strategic PSU’s to 50 percent or lower.
d. Fully protecting the interest of workers.
(a) Only a, b and c
(b) Only a, c and d
(c) Only a, b and d
(d) Only b, c and d
Answer
Answer: (c) Only a, b and d
Explanation:
This is the correct option. These are the true statements regarding recent Government Policy measures towards the public sector.
Question 8.
Which of the following was the first successful privatisation of a Central Public Sector Undertaking, carried out by the Government?
(a) BBUNL
(b) LJMC
(c) MMTC
(d) MoU
Answer
Answer: (b) LJMC
Explanation:
This was the first successful privatisation of a Central Public Sector Undertaking, carried out by the Government. Lagan Jute Machinery Company was a Calcutta based company that was in decline, In the initial stages of dis investment LJMC was approved for privatisation through sale of 74 % stake to a strategic partner.
Question 9.
Which of the following has the power of the Government and the considerable amount of operating flexibility of private enterprises?
(a) Departmental Undertakings
(b) Statutory Corporations
(c) Government companies
(d) All of the above
Answer
Answer: (b) Statutory Corporations
Explanation:
This is the correct answer. These are public corporations brought into existence by a Special Act of Parliament. It is a corporate body created by legislature and is a corporate person. Thus, these have the power of the Government and the considerable amount of operating flexibility of private enterprises.
Question 10.
Disinvestments of PSE’s implies
(a) Sale of equity shares to private sector/public
(b) Closing down operations
(c) Investing in new areas
(d) Buying shares of PSE’s
Answer
Answer: (a) Sale of equity shares to private sector/public
Question 11.
PSE’s are organisations owned by
(a) Joint Hindu family
(b) Government
(c) Foreign Companies
(d) Private entrepreneurs
Answer
Answer: (b) Government
Question 12.
Which of the following is true about statutory corporations?
(a) Statutory corporations are public enterprises that come into existence by a special act of the parliament.
(b) Statutory corporations are subject to the same accounting and audit procedures as are applicable to government departments.
(c) Statutory enterprises are funded directly by the government treasury.
(d) The employees of statutory enterprises are civil servants.
Answer
Answer: (a) Statutory corporations are public enterprises that come into existence by a special act of the parliament.
Explanation:
This is the correct answer. Statutory corporations come into existence by a special act of the parliament.
Question 13.
Reconstruction of sick public sector units is taken up by
(a) MOFA
(b) MoU
(c) BIFR
(d) NRF
Answer
Answer: (c) BIFR
Question 14.
Centralised control in MNC’s implies control exercised by
(a) Branches
(b) Subsidiaries
(c) Headquarters
(d) Parliament
Answer
Answer: (c) Headquarters
Question 15.
Which of the following is/are the correct way(s) of forming a joint venture company?
a. Two parties can incorporate a company in India and the business of both parties can be transferred directly to the new company.
b. The above two parties can subscribe to the shares of the joint venture company in agreed proportion, in cash, and start a new business.
c. Promoter shareholder of an existing Indian company and another party may jointly collaborate to jointly carry on the business of that company.
(a) Only a
(b) Only b
(c) Only c
(d) Only a and b
(e) Only b and c
Answer
Answer: (e) Only b and c
Explanation:
This is the correct answer as both these statements are correct.
Question 16.
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?
(a) RBI
(b) FIPB
(c) BIFR
(d) All of these
(e) Either RBI or FIPB
Answer
Answer: (e) Either RBI or FIPB
Explantion:
This is the correct answer. Reserve Bank of India gives approval if the joint venture is covered under the automatic route. Foreign Investment Promotion Board has to approve a joint venture specially, if it is not covered under the automatic route and it is a special case.
Question 17.
Which of the following roles are played by the public sector in the economy?
a. Regional balance
b. Economies of scale
c. Check over concentration of economic power
d. Import substitution
e. Development of infrastructure
(a) Only a, b and d
(b) Only a, c, d and e
(c) Only a, b, c and e
(d) Only b, c, d and e
(e) All of these
Answer
Answer: (e) All of these
Explanation:
This is the correct answer, as all these factors are important roles played by the public sector in the development of the nation.
Question 18.
All public sector units were referred to _______________, to decide whether a sick unit was to be restructured or closed down.
(a) PSU
(b) MOFA
(c) MoU
(d) BIFR
Answer
Answer: (d) BIFR
Explanation:
This is the correct option the Board of Industrial and Financial Reconstruction decides, whether a sick unit is to be restructured or closed down.
Question 19.
In the 2001 resolution on industrial policy the number of industries exclusively reserved for the public sector was brought down. This meant that the private sector can now enter all areas, except these and the public sector would have to compete with them. Which of the following areas are now exclusive for the public sector?
a. Atomic energy
b. Arms
c. Communication
d. Railways
(a) Only a, b and c
(b) Only a, c and d
(c) Only a, b and d
(d) Only b, c and d
Answer
Answer: (c) Only a, b and d
Expalnation:
This the correct option because atomic energy, arms and railways are exclusive to the public sector only.
Question 20.
The public sector enterprises are to invest and operate in certain spheres. Which of the following is not one of these core sectors?
(a) Civil aviation
(b) Power generation plants
(c) Pharmaceuticals
(d) Project management consultancies
Answer
Answer: (c) Pharmaceuticals
Explanation:
This is a core sector where the government invested through public sector enterprises.
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