What went wrong when the king rode under the arch?

It was too low and knocked off his crown

How does the chain of blame unfold in the poem?

Each accused person blames another, ending with the king's own changes

Name the three forms of organising public sector enterprises.

Departmental undertaking, statutory corporation and government company.

What is a departmental undertaking?

A public enterprise run as a major subdivision or department of a government ministry, financed from the treasury — e.g. the Railways.

How is a statutory corporation created?

By a special Act of Parliament or a state legislature that defines its powers, duties, objects and degree of autonomy.

What minimum shareholding defines a government company?

The government must hold not less than 51% of the paid-up capital of the company.

What is disinvestment?

The sale of equity shares of a public sector enterprise to the private sector and the public.

State two features of global enterprises.

Huge capital resources and advanced technology, along with foreign collaboration and centralised control.

What are the two types of joint ventures?

Contractual joint ventures (no new entity, only an agreement) and equity-based joint ventures (a jointly owned new entity).

State the meaning of Public Private Partnership.

PPP is a relationship between public and private entities to finance, build and operate infrastructure or provide services, sharing tasks, obligations and risks.

How does the public sector maintain regional balance?

By setting up enterprises in backward and underdeveloped regions to reduce regional disparities, as with the location of steel plants in backward areas.

Private, Public and Global Enterprises

Q: What is a mixed economy?

An economy in which both privately owned and government-owned enterprises coexist, as in India.

Class 11 Business Studies · Business Studies · Chapter 3

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CBSE Class 11 · Business Studies

Every merit and limitation of 11 chapters

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CBSE Class 11 · Business Studies

Every merit and limitation of 11 chapters

Marks booster + cheatsheet: key concepts in 2 lines each, common traps
20 marks: finance and MSME units
20 marks: internal and international trade
Five comparison tables, insurance to retail
Case cues for each chapter
Common traps, corrected

Page 1 free about 8 min read, Full kit about 55 min read

₹159See the full kit

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Summary

India has a mixed economy with both privately owned and government-owned enterprises, supplemented by global enterprises operating in many countries. The private sector consists of businesses owned by individuals or groups — sole proprietorships, partnerships, joint Hindu families, cooperatives and companies. The public sector consists of organisations owned and managed by the central or state government, marked by public ownership, public funds and public accountability, and shaped by the Industrial Policy Resolutions of 1948, 1956 and 1991. Public enterprises take three forms: departmental undertakings (run as a department of a ministry, funded from the treasury, staffed by government servants — e.g. Railways, Post and Telegraph), statutory corporations (created by a special Act of Parliament with operational autonomy and a body-corporate status) and government companies (registered under the Companies Act with at least 51% government shareholding). After 1991 the role of the public sector changed through disinvestment, reduction of reserved industries, referral of sick units to the BIFR and Memoranda of Understanding for greater autonomy and accountability. Global enterprises or multinational corporations are huge organisations with vast capital, advanced technology, product innovation, marketing strength and centralised control. Joint ventures pool the resources and expertise of two or more firms (contractual or equity-based), giving access to capital, markets, technology, innovation, low-cost production and established brand names. Public Private Partnership (PPP) links public and private entities to build and operate infrastructure, transferring design and construction risk to the private partner.

Private sector and public sectorDepartmental undertakingsStatutory corporationsGovernment companiesChanging role of the public sector after 1991Global enterprises (MNCs)Joint ventures — contractual and equity-basedPublic Private Partnership (PPP)

Key terms

Public sector

Organisations owned and managed by the central or state government, characterised by public ownership, public funds and public accountability.

Departmental undertaking

The oldest form of public enterprise, run as a department of a ministry, financed from the government treasury and staffed by government servants.

Statutory corporation

A public enterprise brought into existence by a special Act of Parliament that defines its powers, objects and operational autonomy.

Government company

A company registered under the Companies Act, 2013 in which the government holds not less than 51% of the paid-up capital.

Global enterprise (MNC)

A huge industrial organisation that operates in several countries with large capital, advanced technology and centralised control.

Joint venture

The pooling of resources and expertise by two or more businesses to achieve a particular goal, sharing risks and rewards.

Extra questions & answers

Try one from this chapter

The public sector consists of enterprises owned and managed by the:

Flashcards & interactive practice