Business Services and Public, Private & Global Enterprises

Vocabulary flashcards covering core concepts of Business Services and Private, Public, and Global Enterprises.

Classification of Services

The three main classifications of services: Business Services, Social Services, and Personal Services.

Categories of Business Services

The five major categories of business services: Postal & Telecom, Insurance, Banking, Transportation, and Warehousing.

Public Sector Enterprises

State-owned business organizations classified into Departmental Undertakings, Statutory Corporations, and Government Companies.

Intangibility

A primary characteristic of services stating that they are felt or experienced and cannot be seen or touched.

Inseparability

A service feature stating that production and consumption occur simultaneously, making services tied directly to the provider.

Bank Draft

A cheque drawn by one bank against its funds deposited in another bank, authorizing payment to a named party, which is never dishonored or bounced.

Banker's Cheque (Pay Order)

A financial document instructing a bank to pay a specified sum to a third party locally within a town, charging a lower commission than a bank draft.

Real Time Gross Settlement (RTGS)

A digital fund transfer system supervised by the RBI for high-value transactions with a minimum limit of $\text{Rs. 2,00,000}$, operating on a real-time and gross settlement basis.

National Electronic Fund Transfer (NEFT)

An electronic fund transfer method that operates on a net settlement basis with no minimum transaction limit.

Principle of Utmost Good Faith

An insurance principle requiring both the insurer and the insured to transparently and honestly disclose all material facts regarding the policy.

Principle of Indemnity

An insurance principle stating that insurance aims to compensate the insured for actual losses incurred rather than to generate a profit.

Principle of Contribution

An insurance principle where multiple insurers covering the same risk contribute proportionately using the formula: $\frac{\text{Sum Insured with a particular insurer} \times \text{Actual Loss}}{\text{Total Sum Assured}}$.

Principle of Subrogation

An insurance principle specifying that after the insured is fully compensated for loss or damage to property, ownership rights of that property transfer to the insurer.

Departmental Undertakings

The oldest form of public enterprise, established as extensions of government ministries, financed via annual government budgets, and managed directly by civil servants.

Statutory Corporation

A public enterprise established by a Special Act of Parliament defining its powers, functions, and employee rules, operating as a separate legal entity (e.g., RBI, LIC, ICAI).

Government Company

An enterprise registered under the Companies Act, 2013 where at least $51\%$ of the paid-up capital is owned by the government, with shares registered under the President of India.

Contractual Joint Venture

A business partnership where entities collaborate for a common purpose without creating a new separate legal entity, sharing inputs and control under an agreement.

Equity Joint Venture

A joint venture structure involving the creation and joint ownership of a separate legal business entity, where partners share ownership, responsibilities, profits, and losses.

Public-Private Partnership (PPP)

A long-term collaborative arrangement between the public and private sectors to jointly execute projects or provide public services while sharing associated risks and rewards.

Multinational Corporation (MNC)

A large-scale enterprise operating in multiple countries, possessing substantial financial resources, advanced technology, foreign collaborations, and centralized headquarters control.