CBSE Class 11 Business Studies Chapter-3 Important Questions - Free PDF Download
FAQs on Important Questions for CBSE Class 11 Business Studies Chapter 3 - Private, Public and Global Enterprises
1. What are the main differences between Private Enterprises and Public Enterprises as per CBSE Class 11 Business Studies syllabus?
- Ownership: Private enterprises are owned by individuals or private entities; public enterprises are owned and managed by the government.
- Objective: Private aims for profit; public focuses on social welfare and public interest.
- Control: Private is controlled by owners/board; public is managed by government officials.
- Accountability: Private answers to shareholders; public is accountable to the government and public at large.
- Example: Tata Steel (private), Indian Railways (public).
2. How do Global Enterprises differ from local enterprises according to CBSE Class 11 Important Questions?
- Global enterprises operate in two or more countries; local enterprises function within one nation.
- Global enterprises have larger capital, advanced technology, and influence international trade policies.
- Local enterprises have limited resources, focus on domestic markets, and follow only local regulations.
3. What are the major objectives of Public Enterprises in India as per CBSE 2025–26 guidelines?
- Providing essential goods and services to the public.
- Ensuring balanced regional development.
- Promoting employment opportunities.
- Preventing concentration of economic power.
- Supporting economic development and infrastructure.
4. List and briefly explain the three forms of Public Sector Enterprises introduced in Business Studies Class 11 Chapter 3.
- Departmental Undertakings: Managed by government departments. Examples: Indian Railways.
- Statutory Corporations: Set up by special acts of Parliament. Example: Life Insurance Corporation (LIC).
- Government Companies: Government holds at least 51% of share capital. Example: Bharat Heavy Electricals Limited (BHEL).
5. Why was disinvestment of shares introduced in public enterprises, and what impact has it had?
- Purpose: To reduce the financial burden on government, increase efficiency and involve private sector participation.
- Impact: Improved management, more accountability, but sometimes loss of state control in strategic sectors.
6. Explain the concept of Foreign Collaboration in the context of Indian enterprises. (CBSE Important Question)
- Involves partnership between an Indian company and a foreign entity for technology, capital, or expertise.
- Boosts technological advancement and international quality standards in Indian businesses.
- Common in sectors like automobiles, IT, and pharmaceuticals.
7. What is a Statutory Corporation? State its main features as highlighted in Class 11 Important Questions 2025–26.
- Established by a special act of Parliament or State Legislature.
- Has independent legal identity and operational autonomy.
- Enjoys financial independence but is still accountable to Parliament.
- Example: Reserve Bank of India.
8. How does the role of Government Companies differ from Departmental Undertakings in Public Sector Enterprises?
- Government Companies are registered under the Companies Act; enjoy more flexibility and quicker decisions.
- Departmental Undertakings are managed as direct government departments, with less autonomy and slower decision-making.
9. What are the challenges faced by Global Enterprises operating in India?
- Complex regulatory environment and compliance requirements.
- Cultural and language barriers.
- Competition from local businesses.
- Political and economic policy changes affecting investment.
10. How does the government ensure accountability and efficiency in Public Sector Enterprises? (Exam-Focused FUQ)
- Regular audits by government-controlled bodies.
- Annual performance reviews by Parliament or State Assembly.
- Appointment of professional managers and implementation of efficiency targets.
- Disinvestment and public listing to increase transparency.
11. In the context of Class 11 Business Studies, what are some conceptual misunderstandings students have about public and private enterprise objectives?
- Assuming public enterprises always make losses (in reality, some are profitable and efficient as per latest CBSE data).
- Believing all private companies ignore social responsibility (recent CBSE papers ask about private sector CSR efforts too).
12. What criteria determine whether a business is classified as a Global Enterprise according to CBSE Business Studies 2025–26?
- Presence in multiple countries via subsidiaries or branches.
- Centralized control with decentralized operations.
- Large capital investment and advanced technology use.
- Examples: Unilever, Toyota.
13. Why might the government choose to create a departmental undertaking instead of a government company?
For essential public utilities or sectors of strategic importance (such as defense or national railways), greater government control and oversight are necessary, making departmental undertakings more suitable than government companies.
14. How has privatization influenced the performance of Indian Public Sector Enterprises in recent years?
- Led to better efficiency and competitiveness due to private sector practices.
- Helped in resource mobilization and technological upgrading.
- However, concerns over job security and equitable distribution remain (as per recent CBSE exam trends).
15. What are some exam-focused tips for answering 5-mark Important Questions on Private, Public and Global Enterprises as per latest CBSE pattern?
- Begin with a definition and relevant example.
- Structure answer in points or small paragraphs for clarity.
- Highlight two unique/special features.
- Mention CBSE 2025–26 syllabus if possible for accuracy.
