Shivam Singha 965468 46 75

Date

CHAPTER-3
Public, Pivate amd Globol Enteebaises
Forms of Business Organisation

Joint Sector
Private Sector Public Sector

Non- Non-
ncorporated Incorporated incorporated Incorporated

Sole Joint Stock Public

Departmental Corporations
Proprietorship Company Undertakings
Joint Hindu Cooperative Govemment
Family Business Enterprises Company

Partnership

Joint
Venture

pte: A detailed description of the above-mentioned forms of business organisation is given

ahead.

Poblic Secko Rasis Pivate geCHat.

)GnoUe9nmemi aoni9clle l iale indiiduals

b
Rublic wellaoe obiectie ofit ca9ning
3Taz utiesfees Eires3)iance3)Shoee Dehentges etc
4) hbil4)No
4yess bilE

5 Alleuamces, P., tea5ombeiakive spiait self

RetisementhenehtS benefits | G9oomimg,G2owth
Sprat
.()
 6Sy68 46 75
Shivam Singhol Date

Public Enteshaises

Debogtrnenal Stakutoay/ablic GOveAnment

Urdeatoaking Co9po9otion. CompamieS

Depaortmemtal undetaking
This is the oldest_kogm of Pblic c9qamisation
which a9e CStorblished as depcotmemts of
he miniSt9y_amd a9e Consideacd_oat c9 am
Crtemsion of He_miniSt9y itself

These OndestaKing_moy Come Udeg he

Centoci09 he_State goLegnmemi ama the
9ules of cenigalstcuhe gouespment aae apblicabe
They act h9aLgh he officess_of the gauesbmeht
amd iS Emblayees_CLLe_aoeAnmemt emmloyee

Fo9erample-_The Thdiam kaiMurys CIe mamogA_

by he mmistey of 9cilurys.
s t ad teeg9.cph Sesuices_age 9uh as a
Deaatnmemt, in he _oinstay of CommnUhicatOh
ALTodic Radio, Dco9daasbam_c9e ohes
Examples Depcatental uUndestalKirg

Spirat
 g65465g 46 7S Date
Shiomm Sirghol
Featuges of
Depaotnmental
undesteking

Finapce Acccwntabiliy
Accouning- marogememtApfointment
System
Cmployees

Einamce - TL is Financed bY he geueenmemt

h9augh allocationn O fonds inthe
Annual_Gnene0ck bdget opf halicmemt Goueghmen
+9eoLSway P9oideS Linanc
+e0SOGY- and euene _eang
is_also a i d i n t o he t9aSu9y-

Accunting System- ThiS_09ganiSatioh is alsc Subiect

audiE
to acCOUnting a d
Cont9olS aS abpli coable_to otheg GnoUes mend
achiutes

and c o n t 9 e l l e d
S Naagement=_TL iS mamaged
DepaGHmeM#
y_a GOLeAhmemA
ano_S Subiet to d 9ect CoNt9ol ot he
miniStOy-
4 AbLointmentof Lmployees As he nelesStureth

Undegta Ring oloes c t

have Sepa9cte lega Excistemce AsembYees
Spiral

(3
 Vam SIhgo
Date
96su68 46 7S
QSegovegnmemt employees_amd teomS
*

COnditicns of thei9 abpoltmemt, Gemunesction

moton etc a9%e
They a9 headed dete9min@d by goveanMent
by Tdiam
gesuiceCTAS)_oLfice3S Alminist9otive
ama Ciuil Seaamts
who aLe_ t9amsEeabe fsom One
to anoheg mLniSt9y

5 Hcccuntability-The employeesof he
Ho the entesboise a9e accouhtable
(oncesn miniSt9, who 1S
ultinately 9esponsiblefos he
hsliomemt
Suitable
to9
COmblee
ationa9secLATyy GOUe9bment
Con+9o Y
Hnsuegahle Scuscé5
OE
oaliam@rd 7Iptome

Meits ot
Debaatmenkal
undes takirg

Spiral
 Shivam Singtol q6s46g 4675
Date

Comblete GoUehment Cont9l=TAis (cropleely

OLwhed,rorog
Cmd contoalled byagovesnmemt
miniStay T facilates he Pasliamert
to eregcise _eEfectiue_Contool oves
Hheig opesction
AnsEGable to keliamemt- AllL the Depostmenta
Undestakings
ae acccuntabke to halianent aa hejs
Pea foamamceS So hey hove to be co9e ful
about heig bcgsess Ond Pestasmamie:
SoUSCe of ThCome- The 9euenue ea@nedby
he entes haise_isa
Soucea f ncome fogHhe lac/eShnent
as itgoes disecHy to he_ tsaSusy

)Suitable as atonal secuaity-_he emteshaise S

mest Suitable
Lwhen mationa) SeCuSity is_onces ned as it
1S Undeg Hhe di9ect Conteo amd SupesviSIC
of the Conceshe minisSy

Limitation of Debookmerka undestakirg

Lack OF TrdrffeeNFTO
Fleribl Cosumel_
hedS

Delay in Red Bu9ealtSacy GaVelhhmet

DeciSiob Tapism amd Intesfeaente
Making ConsesiakiueapeccchSpiral
5)
 g6s4 68 Y6 FS
Shivam Singhal Date

Theaeisltle Scobe-
Lock of fleribily-_ rescising
ImhsO/ementS
iniHaLhie _ad
maKir
Hutonomy i t Lails to
Due +o lack of theopescukions
PsovideQutono my In

Decision-akirg- The embleyaes os

Delku in hCadsOE he
to t a k e abb9olal
of
Defo9tments have takKing
Concegned minist0y befoLe
he leads to deloys _lb
amy decisiOnThis
amy
attes_wheae 9ompt 0eciSonS 09se
equiscd
CohsesLalhiuve Hpplcach
BueLauCIacy_amd
3)
to
Dehastnnental udetakings
ae uable
ehefitsal bsine¢S oppo9tanitiee
take b to ake
age hotE allbue
beause hey IaUCIcts
SiSKy emtuSes due fo bu
OVes-cautOUS_ad_ConseucHVE aboach-

abism- Een fo9 9ouhne roate9 _amd

4 )Re dayopeLaHionS, Siag
day to
0 f h e 9eeant
auhogy i
Samction
becessa0y the emteah%ISe is_ bound
by buLAUCIaHC_eoceduseS amd

GuleS ThisLLCates Uhaloida.ble

Poblems h tuncHiohing of_hE A LHabiSation

Spinat
(6
 Shiom Singhol 96568 u6 5 -
Date

5Gouanment intes feserte These is aict

intes Fegence_hcLght he miniS+sy which
Peoblems o a Debas+mEr-ol
urderiakig
6Todi£fesent to_cenSuneS necdsThese
eriespsses
aLe Samewhat insehsiLve ConSume
heisam onot ovdeieqiae Suice
hem

Statukasy coabosation

S into
Erisience ioment

Statuto9y Coa9aton_is a cospaite b

with a sebesate leaal eristemce sae unie
S S
a shecial act ol csliament as cf
islatae.
2 TH isalso knawn as Abic sion

ISmamcQedicontsolled b a codd
DiaectoaS aphinted Dyhe mit

7
 G6sy 68 46 7Ss
Shivamm Singhod Date *

TH is Co9poscte emtity- havingPeapetua!

SuccessIon a Common Secl w h P o w e g
tO acqUiLe,_hold Oisbose_of_Poopesty md
to
Sue amo be Sued by_ itS bame C Subject
PooviSionS_oE hegovegbnemt A c t )

Reseave Bamk cof IndiaCRBI), bood Coabooakion

o f Tnada lECT), Li£e Insuaance comamyCLTU
am Aia Tndia ase Sooe impo94amE
Examples StadutaRy Co9o9ctOnsS

Featuaes oF
Statuta9%y
Coopo9ation

StaEting _
t9ation TEms Of SeaViCe

OnelSh1b Hccountigd
Cospcaate Einancia Audit
GcisHemce. Hukonomy Paoceduee

Eoamation= Tt IS establiShad umeg a

Special Act OF he_Pcaliamemt,
hat loyS dewn the obzects, oue9s ama
Lurctions of the ccamaation
d)Ownegship- THis holly ousned by he State
Gnoehment_has Hhe_
oweg
(8) Spiral
 96su68 467-S
Shivam Sirghol Date

to abb9op9iate its Poolits ad ole hCS

t o bea9 he lssesiE amy

3)Cospo9ate Eristemce A Statbto9y CSkcsati

iS a body Co9.pcsate
whichbas a sepasate legal eiSterce
indebemdemtO he gCueshmert TE Cam
Sue amd be Sued mtes into Cont9act
ad acquigePaohesty h ts Own ame

4)Einamcia Hulonomy This 4ybe CE

Cntesbse is
uSuay indeemdentl finamced TH
ObtainS fund S by bo.owings sam
he goyeshmemt_OL hgough 9eehues

Deaied feomSaVe of gondSamd

Seauices to the Pbic T has autha&ty
o Aeain tS_Oning Cml ut iise Hem
Los itS busines

_5 Accounting cm Audit Psoceduses_TiS hot

Subiect to
he goveghment ules amd 9eaulations lp
the mades of ACcCnting bdgeting amd
adit as applica ble to Deko9tnoentod undes tciKirg

62 Sta£fingd mS of 3Lie he Employees of h e e

entepisesc 9o t .
cvesbmemt a9 civil SealamiS_g d c 9 e _YO
goean@d by JoLGmemt 9ulesamd segulacians
Howeves at ines Some ofices aRe Laken 490m
dovem nt_dehoAtment SOnd@putadi0hto head heseasg
Sprat

9
 g6su 68 46 75S
Shivam SinghalN Dute

Facikales opesationol
btcnonic
oush Flexiblit
Aukohomdusi Eséedom Flóm
InteaeRence
Setu

Meits oF
StatutAy
Cospoakion

opeaautionalElexibliy-They enjoy indebendence

in thei9 funtionirg
amd hese i s SUEficient Scobe fos flexibliBy
AdiniHoie Tbey_C9e £9ee490m
UndesiSable goueanmemt 9equlcution
Contol-

2)E9eedom fo.om intertesence- Hs furds of hese

09ganiscationS
do ot Come_ Bom he cent9a_budget
i tis F9ee keom intesfe9ence o£ he goveanment
in tS doy o day unaRing wbich emcuse
beHes_Cmd efficiemt uoAKirg-

3. Autonomaus Se-up _As hese eteabaises ase

Cutonomous O9ganiSCtIOnS,
they 9ame owh blicies dd
Poccedu.es WLh inhe Powegassigndfo
Hem y h e Act How eve9 he
lo) Spinal
 Shivam Singhol q6su68 46 7S
Dale

9equiaePaics ablhsovad of a Hicuha

MinSt9y On Cegtaum SSUGS

4)Facilitates cchomic n9athSuch entespases

Cont9bUte o te
economiC deelobmentaS they hove he e a
Of Hhe goveabmert aWong ith he initiahye
PAiyate emteaises

Theosetica
Undesi9able
upoachices
Autonoy

YYn
Limitaion of
Statutoy
Coshosation
7
Uovesnment
TTnteaFeiemee Delay in
Acion ?
w

Theo9elico) HOkoncomy -The Hotonomies amd

Eleriblity ofScch
Enteahaises Exists on kapeg only th 9ealiH, a
Slatuto9y. Ca9ho9atión is SubjecA +O maNy Gues
a d9eguk1tiohS Omd does hot hjoy cSmuth
Spiral
flo)
 A6sy 68 467S
Shivom Singho Date

ohesctioal fleriblity i n itS wogking:

The wa9Kirg OE
a ) oUeRnmemt TnHeR Fegence
Public Cc9pagotions
(S. Subyectto intesfegencE tsom
iS especia00y
buseauC9ats Cmd_Polt iticms
i nCaseo f _ m a j a sd e c i s
O h 0g heg9©
bug f u n d S a g e involued
e
Undesioa ble PoactiCes Ih Sotutog y co9ko9atohs
OEEiciols boouy miause
heisautonOmy O m d indulg e h Onlous
PeciCices [like cagsubtion), hez thct c9e
b9/ses,
QlmS+ Heobpective of Such eniea

bovehmemd OFHem aubpointS

4 )Delay in Acion- advicogS tohe Cag00cutid
Boaod E4 Odvegsely_a£fectS he facedom
i n eDtesing nto_Ccnt9aLS amd ctae
deeisiOnS h_mse_of amy disoLeehe
golegnh@p
he mcutes is gef£ eged to Ho
wbith tustheR, Deleuus aLich

Spnal

(12)
 Date.
q65MM6R4675
Goveanmemt CompomDy
A
HGnoveanmen
in wbich Comamy meomS Ory
less ham 5
Cornpany
pescent
manS u d ub Of he
Cabitois held by Lent9al
goUegnment_O9 by amYStoue govesnmer
O9
lostlyby cen9ol goveanment Ond
by One_Og mO9e_SBote GOvesnnemts
2HGovesnment Comomy iS also CStablished
UndegHhe Combanies Hct,lol3
The Sbages of he Combamy ase Puschased
in he name of he P9esident ofIrdia

Steel Autha9ity of Ilia limitei CSATL), Basc

Haauy ElecLOicals L4. CBHEL) Comd Bhagat
Echth_movegS CagHotd CBEmL) a9e the leading
Examples of gcenment ompanes

Featuaes oF
Gnovesnhn@mt
Combam
Linance
naboscttoh Accountng4
AlitPaocedue
SALegate Mamgeaemt _noVGnedby
maA AoA
ICgay
Endity
13)
Shivam Singhol 46su 6? 16 75
Date

2ntcsbolation- The goueenmentcombond

is 9eguStesed Lndeg he
Compames_Act dol3 o9 amy PevioS
Comomy_law: TiSfosmed by On
Cxecutive _ahes hom a l e g i s l t E
decisioh

dSeposate_Lega Lptity-TL has a seosoke

legal e i s t e n c e
The
independent_Of he goueepmem
Compamy ca emtes into O C o n t o t ,
acquie PoopestyComtile a Suut
amd cc be SUed by he ied_es+y

3MomagemCmt THis managed by a

bocso of dioedo gS
hominot e by negovesnmend The
mamgemmt_iS eguloted b e-
Povisions of he CompoamiesAct_
iHe amy otbes Poblic limital cOoj y
4 cueaned by Psouisions ofmof4 AoA
Tae merosamdum and Aoticle cf Asscciat on
cse the mim documenis OLHhe [omjnry
Contcming he obiects of Hhe comgoy
Oa Ules omd 2egulaionS oe lCting_
t o apboint ment of employces f h
Comamy

(14) Spirat
 Shiam Singhol g65 68u6 7s
Date

5) Accounting amd Audit soceduses

budgetaay accCunting a aud LontSaS

appli edto Debostm ental uniea+abings
HoL evezam Anral iepes is b e
Paeseni in he Posliamei ps he Sake
legsietuse by he _cudtCS appcniee
he ceptLal govenment:

6Einance- A least6 Cf he_canital ofE

he company is ConSbu+Sdb
h e Staute 09he centsa Jouesnmer ube
he Aesi cam be aisedLn he copia
maaKet
FonoHoN
Easy

fopesational
Indebendene Autonom
Status
Zeyent UbherHs
business Macthica
Meils OF
GaoVeanment/
Combamy
Easy Fasation-thee_is o _ h E E d HasS
Sehesate legislation of he
oaliament fasiis lasmetion T cam bsesiabshes
byfolHling he geuisemen#S_f the TCA oolsat.
Spaal
5)
 a6su 68 U675
Shivam SingholN Dute

obeactioncuw AutonomyTA emsoyS Autonomf

in al mamag e memt
achionSaCCO9ding
decisionS amd akes
Ho buSinesS udCmce T i s f9.eet o m
bu9ecUC9dtiC Con49aama Poltical
Intesf egenCe ofthe goues hmemd

3) frdebendent Status- I t has a sebaacte legal

entity,apat +9o
e GoVehment So Ca99ies
businesS activitiePS like cmy o-heg ivcute _

Compamy

e u e p t unhealthy Business Paactice

These COmapies PaaVide gand quclit

SoductS_at 9eascncble P9CeS_TH helbs
Lo Contsol he_o k e _amd 9educe
ynhealthy busihess Paacties

SLimitaukionof
Grovenment
Compamy-

(Eeet CBefeat o
only in Lack of maum
name
A
Acntiabiliby Aapoe
(16) Spirat
 Shivam Singhok q6s68U6 7S
Date

F9eedom only in haMe HS GoueannentisS

the aIo91ty
Shose holdess, it ex escises Cont9coves
affauas of he compomy omd PoviSions
Of the Comamies A Ct_does nod kouue
much 9elevcnce
)Lack of Accountobilty= As it is tiromced hy
Hhe govespment
tShouldbyacCAuntable to the gouesrmeN.
HoweveR i is not_antiueCLhC_digectly tO
the hs.liament due to iheffectiue gcuesnmCnt
Cont9ol

3)Defect of aim kuapose Being a majos

Shase holdeg h
govesmeniCont9ls he LwhOle amIaemen~
amd HalminiSt%ation 6fHhe campany T
deleatS he mim Puabose of 9cqiSteRing_
iL undeg he_COopanies Act

Chomging kole oE PUblic

Secta
L)Develobment OF TnE9aSAuctIe -In£cstaucAuIO
hetess to alW SuCh
activites a d £eiclities, hich cAe_heeded to
Poovide Difleent Kindsof PUicesn am
Econoy
Spinal
517)