Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 9 Government Organisation Text Book Back Questions and Answers, Notes.
Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 9 Government Organisation
11th Commerce Guide Government Organisation Text Book Back Questions and Answers
I. Choose the Correct Answer
The share capital of the government company must not be less than ……………
Airport Authority of India is a public enterprise ………………… Identify the form of organisation
a) Statutory Corporations
b) Departmental Undertakings
c) Multi-National Corporations
d) State Owned Company
b) Departmental Undertakings
The oldest form of organisation in public sector ……………
a) Public Sector Undertakings
b) Departmental Undertakings
c) Multi National Corporations
d) Statutory Corporation
b) Departmental Undertakings
A Government company purchases shares in the name of …………….
a) Prime Minister
c) Chief Justice of India
d) State Chief Minister
The primary objective of the state enterprises is to …………………….
a) Earn profit
b) Provide Employment
c) Serve the People
d) All the Above
c) Serve the People
II. Very Short Answer Questions
State the different types of public sector enterprises.
- Departmental Undertakings
- Public Corporation
- Government Company
What is the basic feature of a Departmental undertaking?
- Formation: A departmental undertaking is established either as a separate full-fledged ministry or as a sub-division of a ministry (i.e. department) of the Government.
- No Separate Entity: A departmental undertaking does not have an independent entity distinct from the Government.
Give two examples for each of the following.
- Private sector enterprises – Reliance Industries & Hindustan Lever Limited
- Global enterprises – Tata; Mahindra & Mahindra
- Public enterprises – Coal India Ltd &Steel Authority of India
State the form of public enterprises which is most suitable for projects related to National Security.
Strategic industries like defence, and atomic power cannot be better managed other than government departments. Departmental undertakings can maintain secrecy in their work.
The Industrial Policy Resolution 2001 exclusively reserved for few industries for the public sector. Name these industries.
Arms, ammunition and allied items of defence equipment, Atomic energy, Coal and lignite, Mineral oils, Minerals specified in the schedule to the Atomic Energy order 1953, Railway transport.
III. Short Answer Questions
List the areas where the state or central ownership is a preferred form of business organisation. Justify your choice of areas.
- Coal Miners Authority Ltd.
- Steel Authority of India Ltd.
- Indian Telephone Industries
- Tamil Nadu State Corporation Ltd.
A company owned by the central and/or State Government is called a Government Company. Either whole of the capital or the majority of the shares is owned by the Government.
List the names of some enterprises under the public sector and classify them.
Name of the enterprises under public sector
|Indian Railways||Departmental undertakings|
|Tamilnadu Police department||Departmental undertakings.|
|Food Corporation of India (FCI)||Public Corporation|
|Tourism Corporation of India||Public Corporation|
|Coal India Ltd||Government Company|
|Steel Authority of India Ltd||Government Company|
Define Departmental undertakings.
The department form of organisation is the oldest form of organisation. Under the departmental form of organisation, a public enterprise is run as a separate full-fledged ministry or as a major subdivision of a department of the Government. For example, the Indian Railways are managed by the Ministry of Railways.
What is meant by Government Company?
The departmental form of organisation of managing state enterprises is the oldest form of organisation. Under the departmental form of organisation, a public enterprise is run as a separate full-fledged ministry or as a major subdivision of a department of the Government.
IV. Long Answer Questions
What are the advantages and disadvantages of Departmental undertaking?
Department form of organisation of managing state enterprises is the oldest form of organisation.
Following are the advantages of the departmental undertaking.
It is easy to set up a departmental undertaking. The departmental undertaking is created by an administrative decision of the Government, involving no legal formalities for its formation.
Direct and Control of Parliament or State Legislature:
The departmental undertaking is directly responsible to the Parliament or the State legislature through its overall head i.e. the minister concerned.
Strategic industries like defence and atomic power cannot be better managed other than government departments. Department undertakings can maintain secrecy in their work.
Lesser Burden of Tax on Public Earnings:
Departmental undertakings are entirely paid into the Government treasury, resulting in a lesser tax burden on the public.
Instrument of Social Change:
The government can promote economic and social justice through departmental undertakings. Hence, a departmental undertaking can be used by the Government, as an instrument of social change.
Lesser Risk of Misuse of Public Money:
As the departmental undertaking is subject to budgeting, accounting and procedures of the government; the risk of misuse of public money is relatively less.
Guided by Rules and Regulations of the Ministry:
The officers of the departmental undertaking are under the supervision of the direct administrative control of the ministry. They are guided by the rules and regulations of the ministry, framed with a focus on public welfare.
Following are the major limitations of the departmental undertaking.
There are too many procedures which result in a delay. The commercial organisation cannot afford delay in taking decisions.
Incidence of Additional Taxation:
Losses incurred by a departmental enterprise are met out of the treasury. This very often necessitates additional taxation the burden of which falls on the common man.
Lack of Competition:
Civil Servants are given control of these undertakings who may not have a business outlook or commercial experience. So, they run the undertaking in their own fashion without considering the sovereignty of the
Casual Approach to Work:
As officers of a departmental undertaking are subject to frequent transfers; they develop a sense of a casual approach to work. As a result, the operational efficiency of the undertaking suffers a lot.
There are excessive government interference and control in department organisation. These undertakings are not given the freedom to decide their own policies. Centralised control leads to delay in action. Red-tapism and bureaucracy have become the limiting features of these organizations.
Lack of Professional Management and Fear of Criticism:
A departmental undertaking is managed by civil servants, who do not possess professional management skills. Moreover, these managers could not afford to be innovative, because of a fear of criticism by the minister or the Parliament.
A departmental undertaking is economically and financially dependent on the Government’s budgetary allocations. As such, it cannot have its own independent long-range investment decisions, which may bring enormous prosperity to the undertaking.
What are the features of a public corporation? (Any 5)
1. Special Statute:
A public corporation is created by a special Act of the Parliament or the State Legislature. The Act defines its powers, objectives, functions, and relations with the ministry and the Parliament (or State Legislature).
2. Separate Legal Entity:
A public corporation is a separate legal entity with perpetual succession and a common seal. It has an existence, independent of the Government. It can own property; can make contracts and file suits, in its own name.
3. Capital Provided by the Government:
The capital of a public corporation is provided by the Government or by agencies controlled by the government.- However, many public corporations have also begun to raise money from the capital market.
4. Financial Autonomy:
A public corporation enjoys financial autonomy. It prepares its own budget; and has the authority to retain and utilize its earnings for its business.
5. Management by Board of Directors: Its management is vested in a Board of Directors, appointed or nominated by the Government. But there is no Governmental interference in the day-to-day working of the corporation.
What are the features of a Government Company? (Any 5)
Under the Companies Act A Government company is formed through registration under the Companies Act, 1956; and is subject to the provisions of this Act, like any other company. However, the Central Government may direct that any of the provisions of the Companies Act shall not apply to a Government company or shall apply with certain modifications.
Executive Decision of Government:
A Government company is created by an executive decision of the Government, without seeking the approval of the Parliament or the State Legislature.
Separate Legal Entity:
A Government Company is a legal entity separate from the Government. It can acquire property; can make contracts and can file suits, in its own name.
Whole or Majority Capital Provided by Government:
The whole or majority (at least 51%) of the capital of a Government company is provided by the Government, but the revenues of the company are not deposited into the treasury.
Majority of Government Directors:
Being in possession of a majority of share capital, the Government has the authority to appoint a majority of directors, on the Board of Directors of a government company. vi. Own Staff A Government company has its own staff; except Government officials who are sent to it on deputation. Its employees are not governed by civil service rules.
What are the advantages and disadvantages of a public corporation?
1. Bold Management due to Operational Autonomy:
A public corporation enjoys internal operational autonomy; as it is free from Governmental control. It can, therefore, run in a business-like manner. Management can take bold decisions involving experimentation in its lines of activities, taking advantage of business situations.
2. Legislative Control:
Affairs of a public corporation are subject to scrutiny by Committees of Parliament or State Legislature. The Press also keeps a watchful eye on the working of a public corporation. This keeps a check on the unhealthy practices on the part of the management of the public corporation.
3. Qualified and Contented Staff:
The public corporation offers attractive service conditions to its staff. As such it is able to attract qualified staff.
1. Autonomy and Flexibility, Only in Theory:
Autonomy and flexibility advantages of a public corporation exist only in theory. In practice, there is a lot of interference in the working of a public corporation by ministers, government officers, and other politicians.
2. Misuse of Monopolistic Power:
Public corporations often enjoy a monopoly in their field of operation. As such, on the one hand, they are indifferent to consumer needs and problems; and on the other hand, often do not hesitate to exploit consumers.
What are the features of the Departmental Organisation? (Any 5)
1. Formation: A departmental undertaking is established either as a separate full-fledged ministry or as a sub-division of a ministry (i.e. department) of the Government.
2. No Separate Entity: A departmental undertaking does not have an independent entity distinct from the Government.
3. Ultimate Responsibility: The ultimate responsibility for the management of a departmental undertaking lies with the minister concerned who is responsible to the Parliament or State Legislature for the affairs of the departmental undertaking. The minister, in turn, delegates his authority downwards to various other management levels, in the departmental undertaking.
4. Governmental Financing: The departmental undertaking is financed through annual budget appropriations by the Parliament or the State Legislature. The revenues of the undertaking are paid into the government treasury.
5. Accounting and Audit: The departmental undertaking is subject to the normal budgeting, accounting, and audit procedures, which are applicable to all Government departments.