InterviewSolution
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InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
A government company is any company in which the paid - up capital held the government is not less thanA. 49 per centB. 51 per centC. 50 per centD. 25 per cent |
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Answer» Correct Answer - b (B)51 percent |
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| 2. |
Define joint venture. |
| Answer» A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. | |
| 3. |
Explain the features of a government company. |
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Answer» Features of a government company are 1.Formation Government company is created by government under the Company Act. It has separate legal status and it can buy, sell and own property in its own name. Government company can sue and be sued in courts. Main motive of government company is to provide service and also earn profit. 2. Capital The government provides at least 51% of share capital. It can issue shares to public and can borrow funds from government and public. But the government liability is limited to the face value of shares subscribed. 3. Management and control Its management is done by a board of directors. The majority of directors are appointed by the government. The government also appoints the chief executive officer. 4. Flexibility Government company enjoys autonomy and flexibility in internal operations. It has its own rules and regulations. it must follow the provisions of the Company Act. 5. Staffing Government company hires its own employees. Their salaries and facilities are as per company rules. 6. Public accountability Public accountability is another notable feature of government company. It is accountable to public through parliament. The auditor general or his representative audits its books of accounts and reports its performance. |
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| 4. |
In 2005 Mahindra & Mahindra had an agreement with Renault ,a French car manufacturing company to produce and commercialize Logan . It is a `51 : 49` partnership between Mahindra & Mahindra and Renault . The Loagan plant at Nasik has a capacity to produce 50, 000 units per year . the main aim of the two companies t is to produce no - frills Loagan car with classifying features at an aggressive price & launch them exclusively for Indian market . Renault wanted to increase the global car sales by 800, 000 by year 2009 & they believed that this figure could be a achieved by investing in Indian market . What kind of arrangement is between the two companies? Define it . |
| Answer» Correct Answer - Joint venture. | |
| 5. |
Explain the features of joint venture. |
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Answer» Features of Joint VenturesA joint venture typically has the following features. 1. Specific Purposes Parties create joint ventures keeping pre-determined purposes in mind. They generally state this purpose clearly in their agreement. 2. Agreement The parties to a joint venture, i.e. the co-venturers, generally execute a written agreement between them. This agreement states details like their obligations, profit/loss sharing ratios, their rights and liabilities, etc. 3. Specific Duration Since all joint ventures are created for a specific purpose, they generally come to an end once that purpose is fulfilled. The parties can, however, continue working together as well if they mutually agree to do so. 4. Structure of the Venture Parties can create a joint venture by exercising control on any of the following aspects: Assets, Operations, orEntity itself. 5. Profit Sharing The parties always agree on the ratio in which they will share their profits and losses. If there is no agreement to this effect, they have to share profits equally or according to the contribution they made during their admission into the joint venture. |
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| 6. |
Disinvestment of PSFs impliesA. Sale of equity private sector / publicB. Closing down operationsC. Investing in new areaD. Buying shares of PSEs |
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Answer» Correct Answer - a (a)Sale of equity private sector / public |
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| 7. |
State the varous types of organisation in the private sector. |
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Answer» Various types of organisations in private sector are : (i) Sole proprietorship (ii) Partnership (iii) Joint Hindu Family Business (iv) Cooperative Organisation (v) Joint Stock Company. |
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| 8. |
Partnership between any two firms is called as :A. Joint SectorB. Joint VentureC. PPPD. Partnership Firm |
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Answer» Correct Answer - b (b) Joint venture |
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| 9. |
Partnership between private sector firm and a public sector is called :A. Join VentureB. PPPC. PartnershipD. Public Corporation |
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Answer» Correct Answer - b (b) ppp(public private partnership) |
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| 10. |
What term is used for sale of shares to private/ public sector ? |
| Answer» Correct Answer - Disinvestment. | |
| 11. |
Give the classification of companies on the basis of ownership. |
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Answer» On the basis of ownership companies can be divided as (i) Public sector companies (ii) Private sector companies (iii) Joint sector companies. |
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| 12. |
Name the company which operates in more than one country. |
| Answer» Multinational Company. | |
| 13. |
List the names of some enterprises under the public sector and classify them. |
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Answer» Departmental Undertakings. LIC Railway , post and Telegraph dept. Statutory Corporations . LIC , Air India , State Bank of India etc. Government Companies . Gas Authority of india Ltd . (GAIL) . Steel Authority of India Ltd . (SAIL). Bharat Heavy Electricals Ltd . etc. |
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| 14. |
Why are global enterprises considered superior to other business organisations ? |
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Answer» Global enterprises are considered superior to other business organizations because it has following advantages which other business organizations may not have. 1. Availability of capital: MNCs possess ample of capital resources and they are able to raise lot of funds from various sources. 2. International operations: A MNC has production, marketing and other facilities in several countries. 3. Centralized control: MNCs have headquarters in their home countries from where they exercise their control over all branches and subsidiaries. It provides only broad policy, framework to them and there is no interference in their day to day operations. .4. Foreign collaboration: Usually they enter into agreements relating to sale of technology, production of goods, use of brand name etc. with local firms in the host country 5. Advanced technology: These organisations possess advanced and superior technology which enable them to provide world class products and services. 6. Product innovations: MNCs have highly sophisticated research and development departments. These are engaged in developing new products and superior design of existing products. 7. Marketing strategies: MNCs use aggressive marketing strategies. Their brands are well known and spend huge amounts on advertising and sale promotion. |
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| 15. |
What precautions must be kept in mind while allowing a multinaonal company to operate in your country? |
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Answer» Precautions may include 1. They do not exploit resources or labourers. 2. They pay their taxes on time. 3. They do not charge unreasonable price for their product or service. 4. They do not violate the rules and laws of the country. 5. They perform a legal business. |
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| 16. |
Define the term public enterprises. |
| Answer» Public enterprise, a business organization wholly or partly owned by the state and controlled through a public authority. Some public enterprises are placed under public ownership because, for social reasons, it is thought the service or product should be provided by a state monopoly. | |
| 17. |
Which Ltd. Company comes under which sector :A. Private Ltd . CompanyB. MultinationalC. Public Sector CompanyD. Joint Sector company |
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Answer» Correct Answer - b (b)Multinational |
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| 18. |
Define global enterprise. |
| Answer» Global Enterprises are large industrial organisation which extends their industrial and marketing operations through a network of their branchesor subsidiaries in several countries | |
| 19. |
Explain the meaning and features of public corporation. |
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Answer» A public corporation is that form of public enterprise which is created as an autonomous unit, by a special Act of the Parliament or the State Legislature.Since a public corporation is created by a Statute; it is also known as a statutory corporation. Following are the salient features of a public corporation: (i) Special Statute: A public corporation is created by a special Act of the Parliament or the State Legislature. The Act defines its powers, objectives, functions and relations with the ministry and the Parliament (or State Legislature). (ii) Separate Legal Entity: A public corporation is a separate legal entity with perpetual succession and common seal. It has an existence, independent of the Government. It can own properly; can make contracts and file suits, in its own name. (iii) Capital Provided by the Government: The capital of a public corporation is provided by the Government or by agencies controlled by the government. However, many public corporations have also begun to raise money from the capital market. (iv) Financial Autonomy: A public corporation enjoys financial autonomy. It prepares its own budget; and has authority to retain and utilize its earnings for its business. (v) Management by Board of Directors: Its management is vested in a Board of Directors, appointed or nominated by the Government. But there is no Governmental interference in the day-to-day working of the corporation. (vi) Own Staff: A publication corporation has its own staff; whose appointment, remuneration and service conditions are decided by the corporation itself. (vii) Service Motive: The main objective of a public corporation is service-motive; though it is expected to the self-supporting and earn reasonable profits. (viii) Public Accountability: A public corporation has to submit its annual report on its working. Its accounts are audited by the Comptroller and Auditor General of India. Annual report and audited accounts of a public corporation are presented to the Parliament or State Legislatures, which is entitled to discuss these. |
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| 20. |
Name two enterprises which are operating as department undertaking , public corporation and government company. |
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Answer» Departmental Undertakings . Defence , post and Telecommunication Department . Public Coporation . State Bank of india . LIC. |
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| 21. |
When utmost secrecy is required which pubilc sector enterprise is suitable?A. Public CorporationB. Government CompanyC. Deparmental UndertakingD. PPP |
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Answer» Correct Answer - c (c)Departmental Undertaking |
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| 22. |
Who defines the powers , functions , roles and regulations for a statutory corporation? |
| Answer» The special Act , which brings statutory corporation in existence only defines the power , functions and of statutory corporation. | |
| 23. |
Name the company formed as a result of partnership between two companies. |
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Answer» Joint Venture Maruti Suzuki is a company that is formed by the partnership of two companies Maruti, the Indian manufacturer, and Suzuki, the Japanese tech-manufacturer. Explanation: Individuals and companies often enter into partnerships to create a new business entity or a new company. Such a resultant structure can be of a general partnership agreement, a limited liability company or a limited partnership. Maruti Suzuki (I) Limited is the iconic car manufacturer and has a market share of above 53%. The company formed as a result of a partnership between the Japanese and Indian manufacturers resulted in the sharing of their own intellectual properties and manufacturing abilities and creating a widely popular, sturdy, affordable range of cars customized for the Indian roads. |
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| 24. |
Given example of an enterprise operating as departmental undertaking. |
| Answer» Correct Answer - Defence , Railway. | |
| 25. |
The government companies buy shares in whose name :A. Prime MinisterB. President of indiaC. Directors of CompanyD. Registrars of company |
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Answer» Correct Answer - b (B)President of India |
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| 26. |
Identify the form of public sector enterprise in the following cases : (a) It is under the control of concerned Minister of the Department. (b) It enjoys maximum autonomy in all managemant activities. ( c) LIC and Air india are the examples of this form of enterprise. (d) Minimum `51%` of the paid up captal is held by the government. (e) This enterprise is most suitable when national security is concerned. (f) These enterprises are set up under a special Act of parliament. |
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Answer» (a) Departmental undertaking. (b) Government company. ( c) Statutory corporation. (d) Government company. (e ) Depatmental undertaking (f) Statutory corporation. |
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| 27. |
Name the companies having Business operations in more than one country. |
| Answer» Multinational Company (MNC). | |
| 28. |
Multinational companies are mixed blessing to the developing countries " In the light of this statement explain the return of MNC. |
| Answer» It is right to say that multinationals are a mixed blessing , as the multinational companies bring some advantages for host countries but at the same time there are some drawbacks of such enterprises. | |