Chapter private-public-and-global-enterprises: Private, Public and Global Enterprises Assertion-Reason Questions | business studies Class 11 CBSE

Chapter private-public-and-global-enterprises: Private, Public and Global Enterprises Assertion-Reason Questions | business studies Class 11 CBSE | ByteNotes.in

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 1

Logic Check

Assertion (A): Indian Railways is classified as a Departmental Undertaking. Reason (R): It is funded directly from the Government Treasury and its employees are government servants governed by civil service rules.

Reasoning Options

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Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 2

Logic Check

Assertion (A): A Statutory Corporation has complete operational freedom from government interference. Reason (R): In practice, statutory corporations are subject to government and political interference, especially in major financial decisions.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 3

Logic Check

Assertion (A): A Government Company requires at least 51% of paid-up capital to be held by the government. Reason (R): This majority shareholding ensures that the government retains control over management and policy decisions of the company.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 4

Logic Check

Assertion (A): Departmental undertakings are ideal for running competitive commercial enterprises. Reason (R): Departmental undertakings suffer from red tapism, lack of flexibility, and inability to take prompt independent decisions.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 5

Logic Check

Assertion (A): The Industrial Policy Resolution of 1991 was radically different from all earlier industrial policies. Reason (R): The 1991 policy promoted liberalisation, privatisation, and globalisation, and invited foreign direct investment.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 6

Logic Check

Assertion (A): Global enterprises use aggressive marketing strategies to rapidly capture market share. Reason (R): MNCs possess more reliable and up-to-date market information systems and well-established global brand names.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 7

Logic Check

Assertion (A): Joint ventures must be based on a Memorandum of Understanding signed by both parties. Reason (R): The MoU helps define the terms of the joint venture and avoid legal complications at a later stage.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 8

Logic Check

Assertion (A): In a Contractual Joint Venture, a new jointly owned entity is formed. Reason (R): In a CJV, parties only agree to work together without sharing ownership of the business.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 9

Logic Check

Assertion (A): India is considered a mixed economy. Reason (R): Both private sector enterprises and public sector organisations are allowed to operate in India simultaneously.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 10

Logic Check

Assertion (A): Global enterprises possess technological superiority and conform to international quality standards. Reason (R): MNCs have access to advanced technology through their own R&D and are able to optimally exploit local resources and raw materials.

Reasoning Options

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Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 11

Logic Check

Assertion (A): Public Private Partnership (PPP) does not easily attract private finance. Reason (R): The PPP model transfers design and construction risk entirely away from the private sector, making it unattractive.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 12

Logic Check

Assertion (A): The public sector played a significant role in developing infrastructure after Independence. Reason (R): The private sector was unwilling to invest in heavy industries requiring huge capital and with long gestation periods.

Reasoning Options

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Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 13

Logic Check

Assertion (A): Statutory corporations are subject to the same accounting and audit procedures as government departments. Reason (R): Statutory corporations are financially independent and are not part of the central government budget.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 14

Logic Check

Assertion (A): After 2001, only three industries were reserved exclusively for the public sector in India. Reason (R): These three industries — atomic energy, arms, and rail transport — were kept in the public sector due to their strategic importance.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 15

Logic Check

Assertion (A): Disinvestment encourages wider participation of the general public in ownership of public sector enterprises. Reason (R): Disinvestment involves the sale of equity shares of PSEs to the private sector and the public.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 16

Logic Check

Assertion (A): A Government Company requires a separate Special Act of Parliament for its formation. Reason (R): A Government Company is established under the Companies Act, 2013 and does not need a separate Parliament Act.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 17

Logic Check

Assertion (A): Joint ventures provide access to new markets and distribution networks. Reason (R): When a business enters a joint venture with a foreign partner, it gains access to that partner's established distribution channels and consumer base.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 18

Logic Check

Assertion (A): The public sector acts as a check on concentration of economic power in the private sector. Reason (R): By setting up large industries requiring heavy investment, the public sector ensures income benefits are shared among a large number of workers rather than concentrated in a few hands.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 19

Logic Check

Assertion (A): Global enterprises (MNCs) are limited to a small number of product lines in each country. Reason (R): MNCs operate in several areas producing multiple products with their business strategy extending over many countries.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 20

Logic Check

Assertion (A): The Board for Industrial and Financial Reconstruction (BIFR) was set up to decide whether sick PSUs should be restructured or closed. Reason (R): Post-1991, the government treated sick public sector units on the same basis as sick private sector units.

Reasoning Options

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Chapter private-public-and-global-enterprises: Private, Public and Global Enterprises | Assertion-Reason

Assertion (A): Indian Railways is classified as a Departmental Undertaking. Reason (R): It is funded directly from the Government Treasury and its employees are government servants governed by civil service rules.

Assertion (A): A Statutory Corporation has complete operational freedom from government interference. Reason (R): In practice, statutory corporations are subject to government and political interference, especially in major financial decisions.

Assertion (A): A Government Company requires at least 51% of paid-up capital to be held by the government. Reason (R): This majority shareholding ensures that the government retains control over management and policy decisions of the company.

Assertion (A): Departmental undertakings are ideal for running competitive commercial enterprises. Reason (R): Departmental undertakings suffer from red tapism, lack of flexibility, and inability to take prompt independent decisions.

Assertion (A): The Industrial Policy Resolution of 1991 was radically different from all earlier industrial policies. Reason (R): The 1991 policy promoted liberalisation, privatisation, and globalisation, and invited foreign direct investment.

Assertion (A): Global enterprises use aggressive marketing strategies to rapidly capture market share. Reason (R): MNCs possess more reliable and up-to-date market information systems and well-established global brand names.

Assertion (A): Joint ventures must be based on a Memorandum of Understanding signed by both parties. Reason (R): The MoU helps define the terms of the joint venture and avoid legal complications at a later stage.

Assertion (A): In a Contractual Joint Venture, a new jointly owned entity is formed. Reason (R): In a CJV, parties only agree to work together without sharing ownership of the business.

Assertion (A): India is considered a mixed economy. Reason (R): Both private sector enterprises and public sector organisations are allowed to operate in India simultaneously.

Assertion (A): Global enterprises possess technological superiority and conform to international quality standards. Reason (R): MNCs have access to advanced technology through their own R&D and are able to optimally exploit local resources and raw materials.

Assertion (A): Public Private Partnership (PPP) does not easily attract private finance. Reason (R): The PPP model transfers design and construction risk entirely away from the private sector, making it unattractive.

Assertion (A): The public sector played a significant role in developing infrastructure after Independence. Reason (R): The private sector was unwilling to invest in heavy industries requiring huge capital and with long gestation periods.

Assertion (A): Statutory corporations are subject to the same accounting and audit procedures as government departments. Reason (R): Statutory corporations are financially independent and are not part of the central government budget.

Assertion (A): After 2001, only three industries were reserved exclusively for the public sector in India. Reason (R): These three industries — atomic energy, arms, and rail transport — were kept in the public sector due to their strategic importance.

Assertion (A): Disinvestment encourages wider participation of the general public in ownership of public sector enterprises. Reason (R): Disinvestment involves the sale of equity shares of PSEs to the private sector and the public.

Assertion (A): A Government Company requires a separate Special Act of Parliament for its formation. Reason (R): A Government Company is established under the Companies Act, 2013 and does not need a separate Parliament Act.

Assertion (A): Joint ventures provide access to new markets and distribution networks. Reason (R): When a business enters a joint venture with a foreign partner, it gains access to that partner's established distribution channels and consumer base.

Assertion (A): Global enterprises (MNCs) are limited to a small number of product lines in each country. Reason (R): MNCs operate in several areas producing multiple products with their business strategy extending over many countries.

Assertion (A): The Board for Industrial and Financial Reconstruction (BIFR) was set up to decide whether sick PSUs should be restructured or closed. Reason (R): Post-1991, the government treated sick public sector units on the same basis as sick private sector units.

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