Private, Public and Global Enterprises Class 11 Notes: CBSE 11th Business Studies Chapter 3, Download PDF

 CBSE Class 11 Private, Public, and Global Enterprises Notes: Find attached a PDF download link for complete Revision Notes of CBSE Class 11 Business Studies Chapter 3, Private, Public, and Global Enterprises. These revision notes can be useful for students of class 11, appearing in annual examinations 2023-2024.

Private, Public, and Global Enterprises Class 11 Notes: In this article, you can find Revision Notes for CBSE Class 11 Business Studies Chapter 3, Private, Public, and Global Enterprises. A PDF download link for the same has also been attached here. Referring to these revision notes can help you prepare well for examinations, finish your revision in a shorter span of time and assist you to score well in the examinations.

Revision notes provide the following benefits:

• Makes students feel more confident
• A better understanding of the concepts
• Assists in recalling details
• Improves capacity for memorization
• Reduces stress and anxiety at the time of examinations

Related:

Revision Notes for CBSE Class 11 Business Studies Chapter 1

Revision Notes for CBSE Class 11 Business Studies Chapter 2

Mind Maps for CBSE Class 11 Business Studies 2023-2024(PDF)

MCQs for CBSE Class 11 Business Studies 2023-2024(PDF)

Revision Notes for CBSE Class 11 Business Studies Chapter 3 (Private, Public, and Global Enterprises)

Private Sector– Businesses owned by individuals or groups of individuals.

Public Sector– Consists of organizations owned and managed by the government. Some fall under the operation of the central while others fall under the operation of the state government.

Forms of Organizing Public sector enterprises

1.Departmental Undertaking– This is the oldest and most traditional form of organizing public enterprises. These enterprises are established as departments of the ministry and are considered part or an extension of the ministry itself. They act through the officers of the Government and its employees are Government employees. Examples of these undertakings are railways and post and telegraph departments.

Features:

• Funds are derived from government treasury and profits are paid to the same treasury.
• They are subject to accounting and audit controls applicable to other Government activities;
• Employees working under these are government employees and their recruitment takes place as per the rules.
• Directly controlled by the ministry
• Accountable to ministry

Merits:

• Facilitates parliament to exercise effective control over their operations.
• A high degree of public accountability
• Revenue earned goes to the government treasury and is a source of income for the government.
• Ensures national security, directly under the supervision of the concerned ministry

Limitations:

• Inflexible
• Delay in the decision-making process
• Over-cautious bureaucrats don’t let businesses take risky ventures
• Prevalent red-tapism
• High political intervention
• Insensitive to consumer needs

2.Statutory Corporation– Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. This is a corporate body created by the legislature with defined powers and functions and is financially independent with clear control over a specified area or a particular type of commercial activity.

Features:

• They are set up under an Act of Parliament
• Wholly owned by the state
• It is a body corporate that can sue, be sued, enter into contracts, and can acquire property in its name.
• Independently financed.
• A statutory corporation is not subject to the same accounting and audit procedures applicable to government departments.
• The employees of these enterprises are not government or civil servants and are not governed by government rules and regulations.

Merits:

• Enjoys independence and has operational flexibility.
• No financial interference from the government
• They frame their own rules, policies, and procedures
• A valuable instrument for economic development

Limitations:

• Does not enjoy much operational flexibility
• Government interference in matters concerning high budget
• Rampant corruption
• The Government has a practice of appointing advisors to the Corporation Board. This curbs the freedom of the corporation in entering into contracts and other decisions.

3.Government Company– According to section 2(45) of the Companies Act 2013, a government company means any company in which not less than 51 percent of the paid-up capital is held by the central government, or by any state government or partly by Central government and partly by one or more State governments and includes a company which is a subsidiary of a government company.

Features:

• Created under the Companies Act 2013
• Can sue and be sued
• The company can enter into a contract and acquire properties in its own name
• Management is regulated by The Companies Act
• The employees of the company are appointed according to their own rules and regulations as contained in the Memorandum and Articles of Association of the company.
• These companies are exempted from the accounting and audit rules and procedures.
• The government company obtains its funds from government shareholdings and other private shareholders.

Merits:

• Can be established by fulfilling the requirements of the Indian Companies Act. A separate Act in the Parliament is not required.
• It has a separate legal entity, apart from the Government.
• Enjoys autonomy in all management decisions
• by providing goods and services at reasonable prices are able to control the market and curb unhealthy business practices.

Limitations:

• The provisions of the Companies Act do not have much relevance.
• It is not answerable directly to the Parliament.
• The management and administration rests in the hands of the government.

The changing role of the public sector

• Development of infrastructure
• Regional balance
• Economies of scale
• Check over-concentration of economic power
• Import substitution
• Government policy towards the public sector since 1991(Reduction in the number of industries reserved for the public sector from 17 to 8, Disinvestment of shares of a select set of public sector enterprises, Policy regarding sick units to be the same as that for the private sector, Memorandum of Understanding)

4.Global Enterprises– Global enterprises are huge industrial organizations that extend their industrial and marketing operations through a network of their branches in several countries. These enterprises operate in several areas producing multiple products with their business strategy extending over a number of countries. They do not aim at maximizing profits from one or two products but instead spread their branches all over. They are also referred to as Multi-national Companies(MNCs).

Features:

• They possess huge financial resources and the ability to raise funds from different sources.
• Foreign collaboration for the sale of technology, production of goods, and use of brand names for the final products
• These enterprises possess technological superiority in their methods of production.
• They have highly sophisticated research and development departments engaged in the task of developing new products and superior designs of existing products.
• They use aggressive marketing strategies in order to increase their sales in a short period.
• Their operations and activities extend beyond the physical boundaries of their own countries.
• Headquarters are based in their own countries and the control is centralized.

For complete Revision notes of Class 11 Business Studies Chapter 3, click on the link below.

Also find:

CBSE Class 11 Syllabus 2023-24 (All Subjects)

CBSE Class 11 Deleted Syllabus 2023-24 (All Subjects)

NCERT Class 11 Rationalised Content 2023-2024 (All Subjects)