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Chapter Analysis
Intermediate20 pages • EnglishQuick Summary
The chapter discusses the various types of enterprises in India including private, public, and global enterprises. It explains the characteristics of business organizations in the Indian economy, highlighting the mixed economy model where both private and government enterprises coexist. The chapter covers the forms of organizing public sector enterprises, the changing role of the public sector, and features of global enterprises. It also touches on policies towards public sector reforms and the growth of joint ventures and public-private partnerships.
Key Topics
- •Private Sector Organizations
- •Public Sector Enterprises
- •Global Enterprises
- •Disinvestment and Privatization
- •Public Private Partnerships
- •Types of Public Sector Organizations
- •Changing Role of Public Sector
Learning Objectives
- ✓To explain the concept and characteristics of business.
- ✓To understand features of different forms of public enterprises.
- ✓To critically examine the changing role of the public sector.
- ✓To explain features of global enterprises.
- ✓To appreciate the benefits of joint ventures.
Questions in Chapter
What are the different sectors of the economy covered in this chapter?
Answer: The chapter covers the private sector, public sector, and global enterprises as part of the economy.
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What is the significance of the public sector in achieving economic objectives?
Answer: At the time of Independence, it was expected that the public sector would play an important role in achieving economic objectives by building infrastructure and investing in key areas. The public sector was to act as a catalyst for the private sector.
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How has the role of the public sector changed after 1991?
Answer: Following the economic reforms post-1990s, the role of the public sector was redefined to actively compete in the market with the private sector; it was held accountable for investment returns and losses.
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Additional Practice Questions
Explain the concept of disinvestment and its implications on the Indian economy.
mediumAnswer: Disinvestment involves the sale of government equity in public sector enterprises to private sectors. It raises resources and encourages wider participation of the public in ownership. Disinvestment is aimed at improving management efficiency and ensuring financial discipline.
What are the features and challenges of global enterprises?
hardAnswer: Global enterprises are large industrial organizations with operations in several countries, characterized by huge capital resources, advanced technology, and strong marketing strategies. They face challenges like managing foreign collaborations and adapting to different regulatory environments.
Discuss the importance of joint ventures in the modern business world.
mediumAnswer: Joint ventures are crucial for business expansion, product innovation, and entry into new markets. They involve pooling resources and expertise, sharing risks and rewards, and often provide access to new technologies and distribution networks.
Define Public Private Partnerships (PPP) and their role in infrastructure development.
mediumAnswer: PPP is a cooperative arrangement between public and private sectors, typically of a long-term nature, where the government provides capital support, and the private partner provides technical and managerial expertise. PPPs are instrumental in infrastructure projects like roads, schools, and hospitals.
How do departmental undertakings differ from statutory corporations?
easyAnswer: Departmental undertakings are part of government ministries, with staff being government employees. Statutory corporations are created by an act of parliament, having financial autonomy and are managed independently.