Class Xi BST Chapter 3.public Private and Global Enterprises (Competency - Based Test Items) Marks Wise

COMPETENCY – BASED TEST ITEMS
CLASS: 11
SUBJECT: BUSINESS STUDIES
NAME OF CHAPTER: PUBLIC PRIVATE AND GLOBAL ENTERPRISES
LEARNING
Q. OUTCOME
QUESTION MARK
NO /ASSESSMENT
OBJECTIVE
1 LO: Able to understand Which of the following has both the authority of the state and a 1
the specific benefits of sizable degree of operational flexibility enjoyed by private
statutory corporation. businesses?
AO: To assess the
competence of (a) Departmental Undertakings
enjoying operational (b) Statutory Corporations
flexibility even under (c) Government companies
political interference in (d) All of the above
PSUs.
2 LO: Able to understand In MNCs, centralised control indicates that _____ exercises 1
the hierarchy of control
MNCs.
AO: To assess the (a) Branches
functioning and (b) Subsidiaries
centralized control of (c) Headquarters
MNCs. (d) Parliament
3 LO: Able to recognize Which of the following businesses has annual appropriations from 1
the types of public the government budget, receives funds directly from the
sector organizations. government treasury, and also pays its revenue into the treasury?
AO: To develop the
competence to (a) Departmental undertaking
differentiate the (b) Statutory corporation
functioning of various (c) Government company
public sector (d) Cooperatives
organizations.
4 LO: Able to describe Which of the following businesses, at the time of incorporation, 1
the meaning and may stand to gain the most from an established brand name?
feature of joint
ventures. (a) Departmental Undertaking
AO: To assess the (b) Government Company
understanding of (c) Statutory corporations
functioning of various (d) Joint Venture
types of joint venture.
5 LO: Able to understand PSE (Public Sector Enterprise) disinvestments imply _____ 1
the condition of
disinvestment in public (a) Sale of equity shares to private sector/public
sector enterprises. (b) Closing down operations
AO: To assess the (c) Investing in new areas
competency to make (d) Buying shares of PSE’s
the Public enterprises
viable by giving its
shares to public.
6 LO: Able to recognize Any business where the government owns at least _____% of the 1
the public company. paid-up capital is considered a government firm.
AO: To assess the
competency to (a) 49 percent
differentiate between (b) 51 percent
government company (c) 50 percent
and public limited (d) 25 percent
company of private
sector.
7 LO: Able to Public sector businesses must make investments and run 1
Understand the operations in specific industries. One of these essential sectors is
functioning of which one of the following?
pharmaceuticals PSUs.
AO: To assess the (a) Civil aviation
competency of learner (b) Power generation plants
to recognize the (c) Pharmaceuticals
specific requirements (d) Project management consultancies
and establishment of
“PSUs” for social
welfare.
8 LO: Able to understand Which of the following is used to purchase shares of a 1
the process of issue of government company?
shares to government
by government (a) The Indian Government.
companies. (b) The President of India.
AO: To assess the (c) The Chief Minister of the state, where the head office of the
competence of company lies.
subscriptions of shares (d) The Managing Director of the company.
by government
companies.
9 LO: Able to Assertion (A): The ministry itself is considered to be an extension 1
differentiate between of the department that the Central Government of India has
public corporation and created.
departmental
undertaking. Reason(R): LIC is an illustration of one of these departments.
AO: To assess the Select the right response from the list of possible answers based
competence of making on the aforementioned assertion and justification.
difference between
various public sector (a) Both Assertion and Reason are correct and the Reason is a
enterprises. correct explanation of the Assertion.
(b) Both Assertion and Reason are correct but Reason is not a
correct explanation of the Assertion.
(c) The Assertion is correct but the Reason is incorrect.
(d) Both the Assertion and Reason are incorrect.
10 LO: Able to describe Assertion (A): A government-owned corporation should not 1

the powers of minister engage in political interference.
in public sector
enterprises. Reason (R): Ministers’ whims and fancies determine the operating
AO: To assess the
understanding of policies of government-owned businesses.
power of ministers in
various types of public (a) Both Assertion and Reason are correct and the Reason is a
sector units to correct explanation of the Assertion.
maximize the welfare (b) Both Assertion and Reason are correct but Reason is not a
of public. correct explanation of the Assertion.
(c) The Assertion is correct but Reason is incorrect.
(d) Both the Assertion and Reason are incorrect.
11 LO: Able to understand The Gas Authority of India Ltd. (GAIL) is working on several 3
the steps of formation energy and electricity projects. Government of India holds a large
and functions of majority of its shares. It has all the features of a corporation and is
government company. registered under the Companies Act of 1956. The government
AO: To assess the appoints the board of directors. The Board and the shareholders
capacity to form and are in charge of the effective operation of the business. The
run the government business draughts and submits its annual report to the proper
company. authorities.
(a) Name the category of public sector enterprise to which the

previous paragraph refers.
(b) Whose name are government buy shares under?
(c) Where do government organizations submit their reports in ?
12 LO: Able to understand Electronics market leader Sony Ltd. It is registered as a company 3
the concept of and operates in many different nations throughout the world. Its
multinational headquarters are in Tokyo, Japan.
companies and their
roles in developing The corporation hires qualified and experienced managers to
underdeveloped oversee its branches and subsidiaries throughout several nations.
countries. To continue to be a leader in electronics, they always use the
AO: To develop most recent technologies.
competency to judge
the role of (a) Name the sort of business indicated in the aforementioned
multinational company scenario.
specially for (b) Describe the location of Sony's headquarters.
underdeveloped (c) List the two advantages of Sony that were mentioned in the
countries. previous paragraph.
13 LO: Able to learn the The Railway Ministry includes Indian Railway. The Railway 3
features and merits of Ministry is in charge of organising and managing it. The funds are
departmental allotted from the federal treasury, and any income it generates is
undertakings. deposited solely into the treasury. It is treated like a component of
AO: To judge the the government, and hiring, selecting, and appointing staff all
competency of forming follow the same procedures as for public servants.
departmental
undertakings and their (a) Identify the category of public sector enterprise that railway
critical evaluation. falls within.
(b) What is the situation of the railway workers?
(c) Where does it get its money from?
14 LO: Able to understand The Indian government launched the METRO project, in which 3
the meaning and the private sector was invited to participate in order to get the
necessity of “PPP”. advantages of the private sector's efficiency, in order to address
AO: To assess the the challenges, the public encountered with the transport system.
necessity of “PPP” The project was a huge success because millions of people are
specially for using the metro to travel from one location to another.
underdeveloped
countries like India. (a) Describe the business type described last in the sentence
above.
(b) Identify the 'PPP' that runs Delhi's metro system.
(c) Cite one advantage of PPP.
15 LO: Able to understand With Enactment of LIC Act, 1956, an autonomous body, Life 4
the operational Insurance Corporation of India was formed. The act defines its
flexibility and powers, duties and functions. It has a separate legal entity. It is
government control as fully owned by government. It has independent financial policy
combined form in and can raise funds by borrowing from public and government.
public sector however, it is not subject to any budgetary accounting or audit
enterprises. control like Railways. It 's annual report is presented in parliament
AO: To develop the every year.
competency how
operational flexibility (a) Name the type of public sector enterprise referred in above
and power of case.
government exercises (b) Name the act under which it is formed.
by “PSUs”. (c) Name any other statutory corporation.
(d) State two features of statutory corporation mentioned above.
16 LO: Able to understand The Department of Post and Telegraph is a Government Ministry. 4
the functioning of It is entirely managed, supervised, and funded by the relevant
departmental ministry. The monies required by the department are included in
undertakings. the ministry's annual budget. The parliament is the ministry's
AO: To assess the primary line of accountability.
competency to
recognize the (a) State which sector the Postal and Telegraph Department falls
departmental under.
undertakings and their (b) Identify the type of organization or group it is as well as the
relation with concerned relevant ministry.
ministry. (c) Name the other departmental undertaking controlled by
ministry?
(d) How does the department treat its revenues?
17 LO: Able to understand A road project was about to get started by the Jharkhand 4
the working relation of government. This is why the government needed a management
government with expert. and resources to execute it. The private sector was
private people in contacted by the government to complete requirement. Now, the
“PPP”. public and private sectors will work together to complete this
AO: To assess the project.
competence of making
working relation (a) What type of project did the Jharkhand Government plan to
between government begin?
and private people by (b) What did the Jharkhand Government require to complete the
using the resources of Road Project?
private people to (c) How did the Jharkhand Government plan to fulfill its
complete the requirement for the Road Project?
Jharkhand road project. (d) How will the project be completed?
18 LO: Able to understand A high-quality product that is well-liked in China is produced by a 6

the process of entering china company, Nitisha Ltd. The business is looking into the
in foreign market to get potential of exporting its goods to other nations. It concluded that
the benefit of large- India can be a good market for its products after doing a
scale operations. comprehensive online search. However, the corporation is
AO: To judge the ignorant of the Indian distribution network. The organization is
competence of currently searching for a business that is established in India and
extending the business has a reliable distribution network. It once more scanned the
to foreign territories. internet and discovered an Indian company called Shamma Ltd.
that was struggling financially but had a powerful distribution
network.
(a) What kind of products does Nitisha Ltd. manufacture?

(b) Why did Nitisha Ltd. consider India as a potential market?
(c) What was the challenge that Nitisha Ltd. faced when
considering the Indian market?
(d) How did Nitisha Ltd. address the distribution challenge in
India?
(e) What was the financial situation of 'Shamma Ltd.' when
Nitisha Ltd. approached them?
(f) How did Nitisha Ltd. benefit from the agreement with
'Shamma Ltd.'?
19 LO: Able to assess the Ark Ltd., a foreign company, started its business in a under- 6
most profitable use of developed country. The size of the business is quite large. The
our resources with the company has plenty of resources. It employs thousands of people
help of foreign in the under-developed country. The raw materials used by the
companies as well as company are readily available here. However, since there was not
the employment demand for these raw materials here, the producers were unable to
opportunities of get the best price for it. Due to this reason, the producers were
underdeveloped discouraged. Some local businessmen used to act arbitrarily
countries. earlier, but now they have corrected themselves. The reason for
AO: To judge the their becoming better is competition with the foreign company.
understanding of Now their arbitrary approach has ended altogether. Ark Ltd. is
optimum use of various using completely the latest technology in its various business
resources with the help activities. As a result, the local people also have got the
of foreign technologies opportunity to learn the new technology. Because of using the
and employment modern technology and doing production at a large scale, the
opportunities in company's cost of production is very low. Because of its huge size
underdeveloped and status, the company occupied a dominant position in the
countries like India. market and took over some domestic firms.
(a) What caused some local businessmen to change their

approach?
(b) How has Ark Ltd. contributed to the local people's
knowledge?
(c) What factor contributes to Ark Ltd.'s low cost of production?
(d) What advantage has Ark Ltd. gained in the market due to its
size and status?
(e) Which type of business enterprise is referred to in the above
para?
(f) State any three features of the enterprise from the above para.
20 LO: Able to understand One of the political parties made a promise that if they came into 6
the role of government power, they would set up such public sector enterprises in the
in business as well as states which will have the partnership of both the public and the
welfare activities with government. However, in these enterprises, the ownership of the
the help of private government shall not be less than 51%, like as SAIL, BHEL,
people in form of HEC, etc. Setting up of these enterprises is done as per the
public sector units. provisions of the Indian Companies Act, 2013. The financing of
AO: To judge the these enterprises is done jointly by both, the people and the
competence of government. The burden of financing them will not be put on the
formation of shoulders of the people only. This organisation will work like as
government public company of private sector. The interference of government
companies. How these will be minimised. The directors will be appointed as per the
companies work with numbers of shareholders of both sectors.
private people in
business as well as
welfare areas. 1) What was the sector in which the political party promised to
open the commercial unit: -
(i)Public sector.
(ii)Private sector.
(iii)Joint sector.
(iv)None of these.
2) Recognize the type of units proposed by political party: -

(i)Departmental undertakings.
(ii)Public corporations.
(iii)Government Company.
(iv)None of these.
3) The liability of proposed unit will be: -

(i)Unlimited.
(ii)Limited.
(iii)Fixed by Government.
(iv)None of these.
4) In which form of PSUs, a private individual can also become a

shareholder?
(i)Departmental undertakings.
(ii)Public corporations.
(iii)Government Company.
(iv)None of these.
5) Government companies are formed by :-

(i)Passing special act in parliament.
(ii)The order of concerned minister.
(iii)Complying the provisions of Companies Act 2013.
(iv)None of these.
6) Which of the following is not the example of proposed unit?

(i) SAIL
(ii)HEC
(iii)LIC
(iv)BHEL
ANSWERS:
Q. NO ANSWER
1 (b) Statutory Corporations.
2 (c) Headquarters
3 (a) Departmental undertaking
4 (d) Joint Venture
5 (a) Sale of equity shares to private sector/public
6 (b) 51 percent
7 (c) Pharmaceuticals
8 (b) The President of India.
9 (c) The Assertion is correct but the Reason is incorrect.
10 (a) Both Assertion and Reason are correct and the Reason is a correct explanation of the
Assertion.
11 (a) 'Government Company'.
(b)President of India.
(c) In both the houses of parliament, Lok Sabha as well as Rajya Sabha.
12 (a) 'Multinational Company' or global enterprise.
(b) Japan (Tokyo)
(c) (i) Efficient management.
(ii) Use of sophisticated or latest technology.
13 (a) Departmental undertaking.
(b) They are considered as civil servants or government employees.
(c) From government treasury.
14 (a) ”PPP” Public Private Partnership .
(b) DMRC
(c) Use of local resources of private people.
15 (a) Public Corporation or Statutory Corporation.
(b)LIC Act 1956
(c) ONGC
(d)i. Separate Legal Entity
ii. Financial Autonomy
16 (a) Public sector.
(b)Departmental undertaking
(c) Railways.
(d)Deposited in Government Treasury.
17 (a) The Government planned to begin a Road Project.

(b)The Government needed management specialists and financial help to complete it.
(c) The Government contacted the private sector to fulfill this requirement.
(d)Now, this project will be completed jointly by both the public sector and private sector.
18 (a) Nitisha Ltd. manufactures high-quality products.

(b)After a thorough search on the internet, Nitisha Ltd. concluded that India could be a good
market for its products.
(c) Nitisha Ltd. was unaware of the distribution system in India.
(d)Nitisha Ltd. searched and found an Indian company named 'Shamma Ltd.' with a strong
distribution system, and they negotiated to jointly run their businesses.
(e) 'Shamma Ltd.' was facing severe financial constraints.
(f) Through the agreement with 'Shamma Ltd.', the American company gained a good
experience of entering foreign markets with the help of Shamma Ltd.'s strong distribution
system.
19 (a) Competition with the foreign company (Ark Ltd.) caused some local businessmen to
change their arbitrary approach.
(b)Ark Ltd.'s use of modern technology in its business activities has given the local people an
opportunity to learn the new technology.
(c) Ark Ltd.'s use of modern technology and large-scale production contribute to its low cost
of production.
(d)Ark Ltd. has occupied a dominant position in the market and has taken over some domestic
firms due to its huge size and status.
(e) Multinational company
(f) Features:
i. Expansion of market
ii. Giant size and huge resources
iii. Advanced technology
20 1) (i) Public sector.

2) (iii)Government Company.
3) (ii) Limited.
4) (iii) Government company.
5) (iii)Complying the provisions of Companies Act 2013.
6) (iii) LIC.
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COMPETENCY – BASED TEST ITEMS

10 LO: Able to describe Assertion (A): A government-owned corporation should not 1

(a) Name the category of public sector enterprise to which the

18 LO: Able to understand A high-quality product that is well-liked in China is produced by a 6

(a) What kind of products does Nitisha Ltd. manufacture?

(a) What caused some local businessmen to change their

2) Recognize the type of units proposed by political party: -

3) The liability of proposed unit will be: -

4) In which form of PSUs, a private individual can also become a

5) Government companies are formed by :-

6) Which of the following is not the example of proposed unit?

17 (a) The Government planned to begin a Road Project.

18 (a) Nitisha Ltd. manufactures high-quality products.

20 1) (i) Public sector.

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