Question 1

Q1: Describe the Industrial Policy 1991, towards the public sector.

Accepted Answer

The Industrial Policy of 1991 brought radical changes to the role and functioning of the public sector in India. It marked a shift from a state-led development model to one that emphasized liberalisation, privatisation, and globalisation. The main elements of the government's policy towards the publ...

Question 2

Q2: What was the role of the public sector before 1991?

Accepted Answer

Before the economic reforms of 1991, the public sector was considered the primary engine of economic growth and development in India. It was assigned a strategic and dominant role in the economy with several key objectives:    Development of Infrastructure: The public sector was responsible for buil...

Question 3

Q3: Can the public sector companies compete with the private sector in terms of profits and efficiency? Give reasons for your answer.

Accepted Answer

Yes, public sector companies can compete with the private sector in terms of profits and efficiency, but they often face certain inherent challenges that can hinder their performance. The Industrial Policy of 1991 was specifically designed to make them more competitive. Arguments for their ability t...

Question 4

Q4: Why are global enterprises considered superior to other business organisations?

Accepted Answer

Global enterprises, also known as Multinational Corporations (MNCs), are often considered superior to other business organisations due to a combination of factors that give them a significant competitive advantage. Their superiority stems from the following key features:    Huge Capital Resources: G...

Question 5

Q5: What are the benefits of entering into joint ventures and public private partnership?

Accepted Answer

Entering into joint ventures and public private partnerships (PPPs) offers significant benefits to the participating businesses and entities. Benefits of Joint Ventures: A joint venture is a business arrangement where two or more parties pool their resources to achieve a particular goal. The key ben...

Question 6

Q1: Make a list of Indian companies entering into joint ventures with foreign companies. Find out the apparent benefits derived out of such ventures.

Accepted Answer

This is a project that requires research into current business activities. To complete this assignment, you should follow these steps: Step 1: Research and List Joint Ventures    Look for business news in newspapers, financial magazines, or reliable online sources to identify recent examples of Indi...

Question 7

Q1: Explain the concept of public sector and private sector.

Accepted Answer

The Indian economy is a mixed economy, which means it comprises both the public sector and the private sector.    Private Sector: This sector consists of business enterprises owned by individuals or a group of individuals. The primary objective is typically profit maximization. Various forms of priv...

Question 8

Q2: State the various types of organisations in the private sector.

Accepted Answer

The private sector consists of businesses owned by individuals or a group of individuals. According to the chapter, the various forms of organisation in the private sector are:    Sole Proprietorship    Partnership    Joint Hindu Family Business    Cooperative Society *   Company

Question 9

Q3: What are the different kinds of organisations that come under the public sector?

Accepted Answer

Public sector enterprises can be organised in various forms depending on their nature, operations, and relationship with the government. The three main forms of organisation in the public sector are: 1.  Departmental Undertaking: This is the oldest form, where the enterprise is managed as a departme...

Question 10

Q4: List the names of some enterprises under the public sector and classify them.

Accepted Answer

Based on the information and examples provided in the chapter, here are some enterprises under the public sector, classified according to their form of organisation: 1.  Departmental Undertakings: These are run as departments of a government ministry.        Indian Railways        Post and Telegraph...

Question 11

Q5: Why is the government company form of organisation preferred to other types in the public sector?

Accepted Answer

The government company form of organisation is often preferred in the public sector due to several advantages it offers over departmental undertakings and statutory corporations. The key reasons for its preference are:    Ease of Formation: A government company can be established simply by fulfillin...

Question 12

Q6: How does the government maintain a regional balance in the country?

Accepted Answer

The government is responsible for ensuring balanced development across all regions of the country and removing regional disparities. It maintains a regional balance primarily by establishing public sector industries in backward or underdeveloped areas.  Before independence, industrial development wa...

Question 13

Q7: State the meaning of public private partnership.

Accepted Answer

A Public Private Partnership (PPP) is a relationship or arrangement between public sector entities (like government ministries or departments) and private sector entities (local or foreign businesses). The purpose of a PPP is to deliver infrastructure projects and other services to the public.  Unde...

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