Private, Public and Global Enterprises

Flashcards covering forms of public sector enterprises (departmental undertakings, statutory corporations, and government companies) and global enterprises based on the Class 11 Business Services and Private, Public and Global Enterprises notes.

Mixed Economy

An economic system, such as India's, consisting of both privately owned and government-owned business enterprises.

1st Industrial Policy Resolution

The industrial policy resolution enacted in the year 1948.

2nd Industrial Policy Resolution

The industrial policy resolution enacted in the year 1956.

Departmental Undertaking

The oldest and most traditional form of public sector enterprise, established as a department of a ministry and considered an extension of the ministry itself with no independent status from the government.

Departmental Undertaking Examples

Railways, Defence, and post & telegraph.

Features of Departmental Undertakings

Complete government control, lack of a separate legal entity, financing derived directly from the government treasury (annual budgets), direct accountability to the ministry, and staff treated as government employees headed by IAS officers and civil servants.

Statutory Corporations

Public sector corporate bodies brought into existence by a special Act of Parliament that combine the power of government with the operational flexibility of private enterprise.

Statutory Corporation Examples

SBI, LIC, and FCI.

Features of Statutory Corporations

Created by an Act of Parliament or central/state legislature, defined by specific legal powers and limitations, possessing a separate legal entity, operated independently from the government treasury budget, and managed by a government-appointed Board of Directors whose staff are not government employees.

Government Company

A company established purely for business purposes under The Companies Act 2013, in which not less than $51\%$ of the paid-up capital is held by the central government, state government, or both.

President of India (Role in Government Companies)

The official in whose name the shares of a government company are purchased.

MOA & AOA in Government Companies

The Memorandum of Association and Articles of Association, which dictate the specific rules and regulations according to which employees of a government company are appointed.

Global Enterprises / Multinational Companies (MNCs)

Enterprises that operate in multiple countries, having branches across different nations while maintaining headquarters located in one single home country.

MOFA

Majority owned foreign affiliates; the popular designation for the foreign branches of global enterprises and multinational corporations.

Global Enterprise Examples

Coca-Cola, Sony, Reebok, and Hyundai.

Features of Global Enterprises

Key characteristics including huge capital, advanced technology, foreign collaboration, centralised control, effective marketing strategies, and aggressive expansion.