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Chapter 9: Government Organisation — Online MCQ Test

COMMERCE · CLASS 11th · Tamil Nadu State Board
Practice Chapter 9: Government Organisation with a free chapter-wise online MCQ test. This chapter covers: This chapter covers public sector enterprises in India. Students examine structural features advantages and limitations of departmental undertakings statutory public corporations a.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 9: Government Organisation — Important Questions & Answers

Which of the following is a feature of a departmental undertaking?
  • A. Separate legal existence
  • B. Direct control of the government department
  • C. Ownership by private shareholders
  • D. Formation under the Companies Act only
Answer: B. Direct control of the government department
A departmental undertaking functions as a part of a government department and is directly controlled by the concerned ministry.
Public corporations are created by:
  • A. Articles of Association
  • B. Special Act of Parliament or State Legislature
  • C. Partnership deed
  • D. Memorandum of Association only
Answer: B. Special Act of Parliament or State Legislature
A statutory public corporation is established by a special Act passed by Parliament or the State Legislature.
A public corporation is most suitable when the enterprise needs:
  • A. Strict day-to-day political control
  • B. Autonomy with public accountability
  • C. Only family ownership
  • D. No legal powers
Answer: B. Autonomy with public accountability
Public corporations are created to give operational autonomy while still ensuring public accountability through statutory provisions.
Which of the following is NOT a feature of a government company?
  • A. It is registered under the Companies Act
  • B. It has a separate legal identity
  • C. It is always wholly owned by the government
  • D. It can have mixed ownership
Answer: C. It is always wholly owned by the government
A government company need not be wholly owned by the government; it is enough if the government holds at least 51% of the paid-up share capital.
A board question asks: 'Which statement is true about government companies?' Which one is correct?
  • A. They are formed only by ordinance
  • B. They are subject to the provisions of the Companies Act
  • C. They do not have a board of directors
  • D. They cannot issue shares
Answer: B. They are subject to the provisions of the Companies Act
Government companies are incorporated under the Companies Act and are governed by its provisions, along with relevant government rules.