Chapter Exam

Chapter 3: Private Public and Global Enterprises — Online MCQ Test

Q: A government company must have at least how much share capital held by the government?

Answer: C. 51% — As per the Companies Act, a government company is one in which not less than 51% of the paid-up share capital is held by the government.

Q: Which of the following is NOT an advantage of a public sector enterprise?

Answer: C. Easy and quick decision-making — Public sector enterprises often face delays due to bureaucracy and multiple approvals, so quick decision-making is not usually an advantage.

BUSINESS STUDIES · CLASS 11 FIRST PUC · Karnataka State Board

Practice Chapter 3: Private Public and Global Enterprises with a free chapter-wise online MCQ test for Karnataka State Board CLASS 11 FIRST PUC BUSINESS STUDIES. This chapter covers: Focusing on public sector dynamics this chapter examines private vs public sector enterprises departmental undertakings statutory corporations government companies and global enter.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 3: Private Public and Global Enterprises — Important Questions & Answers (FAQ)

Frequently asked questions from Karnataka State Board CLASS 11 FIRST PUC BUSINESS STUDIES — Chapter 3: Private Public and Global Enterprises, with answers and explanations. These are sample questions; the exam has its own separate question set.

Which of the following is a feature of a departmental undertaking?

A. It has separate legal existence from the government
B. It is controlled directly by a government ministry ✓
C. It raises capital only from private investors
D. It functions under the Companies Act

Answer: B. It is controlled directly by a government ministry
A departmental undertaking works as part of a government department and is directly controlled by the ministry concerned.

A government company must have at least how much share capital held by the government?

A. 25%
B. 50%
C. 51% ✓
D. 100%

Answer: C. 51%
As per the Companies Act, a government company is one in which not less than 51% of the paid-up share capital is held by the government.

Which of the following is NOT an advantage of a public sector enterprise?

A. Public welfare orientation
B. Economies of scale
C. Easy and quick decision-making ✓
D. Availability of large financial resources

Answer: C. Easy and quick decision-making
Public sector enterprises often face delays due to bureaucracy and multiple approvals, so quick decision-making is not usually an advantage.

Which of the following correctly compares a statutory corporation and a government company?

A. Both are created under the Companies Act
B. Both are owned entirely by private investors
C. A statutory corporation is created by a special Act, while a government company is formed under the Companies Act ✓
D. A statutory corporation has no legal status

Answer: C. A statutory corporation is created by a special Act, while a government company is formed under the Companies Act
The method of formation differs: statutory corporations are created by a special law, while government companies are incorporated under the Companies Act.

Which of the following statements about government companies is correct?

A. They are established only by a special Act of Parliament
B. They are outside the purview of the Companies Act
C. They are subject to provisions of the Companies Act, but government control is through shareholding ✓
D. They cannot have private shareholders at all

Answer: C. They are subject to provisions of the Companies Act, but government control is through shareholding
Government companies are incorporated under the Companies Act and government control is exercised mainly through majority shareholding.

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