International Commerce Olympiad

1. Which of the following is a departmental undertaking?

(a) Bharat Heavy Electicals limited

(b) Delhi Transport Corporation

(d) State Bank of India

Ans: (c) Indian Railways

2. The Shares of Government in a Government company should not be less than:

(a) 51% (b) 50%

Ans: (a) 51%

3. How are statutory corporations created?

(a) They are incorporated under the companies Act, 1956.

(b) They are created by a Special Act of Parliament.

(d) They are created by a notification promulgated by the President of India.

Ans: (b) They are created by a Special Act of Parliament.

4. Privatization of the public sector means:

(a) The employees are private now.

(b) Selling the shares of the public sector company.

(d) Allowing the politicians to run the company.

Ans: (b) Selling the shares of the public sector company.

5. A Multi-National Company operates in:

(a) One country (b) Two or three countries

Ans: (d) More than one country

6. A Joint Venture may come into existence when:

(a) Foreign investor acquires an interest in an existing local company.

(b) A local firm acquires interest in a foreign firm.

(d) Any one of the three methods specified above.

Ans: (c) Both local and foreign entrepreneurs jointly form a new enterprise.

7. Reconstruction of sick public sector units is taken up by:

(a) MOFA (b) MOU

Ans: (c) BIFR

8. Which of the following is an Indian multinational corporation:

(a) Wipro (b) Microsoft

Ans: (a) Wipro

9. Which of the following is a correct feature of a departmental undertaking?

(a) The funding of these enterprises comes through shares, debentures and other instruments from Financial Markets.

(b) They are subject to accounting and audit standards applicable to all other Government Activities.

(d) They are not accountable to the parent ministry.

Ans: (b) They are subject to accounting and audit standards applicable to all other Government Activities.

10. Which of the following is a correct merit of a Statutory Corporation?

(a) They do not enjoy independence in their functioning and there is high

degree of operational inflexibility.

(b) Funds for their operations come from the central budget.

(c) Since they are autonomous organizations they frame their own policies and procedures within powers assigned to them by the Act.

(d) It is not a valuable instrument of economic development.

Ans: (c) Since they are autonomous organizations they frame their own policies and procedures within powers assigned to them by the Act.

11. Which of the following is a correct merit of a Government Company?

(a) It is formed under Companies Act, 1956 so a separate act is not required for its formation.

(b) It does not have a separate legal entity apart from government.

(d) These companies face stiff competition from Private sector companies and are thus not able to fulfill the social responsibility for which they are formed.

Ans: (c) The company cannot enter into any contract without permission of the government.

12. ‘Global enterprises usually enter into agreements with Indian companies pertaining to the sale of technology, production of goods, use of brand names for final products etc.’ Which feature of Global Enterprises does this statement signify?

(a) Expansion of Market territory (b) Foreign Collaboration

Ans: (b) Foreign Collaboration

13. Birla Yamaha Ltd and Hero Honda Ltd are examples of:

(a) Multinational corporations (b) Government Companies

Ans: (d) Joint Venture Companies

14. Which of the following statements is FALSE about PUBLIC PRIVATE PARTNERSHIP (PPP):

(a) PPP is an arrangement which facilitates partnership between governments on the one hand and private enterprise on the other.

(b) It is made to undertake a project or service of national importance.

(d) Revenue is shared by the government and private enterprise in the agreed ratio.

Ans: (c) It is suitable for very small projects whose gestation period is very long.

15. Match column-I (Name of the enterprise) with Column-II (Type of enterprise):

Column-I Column-II

(Name of the enterprise) (Type of enterprise)

(a) Bharat Heavy Electricals (i) Global Enterprise Limited

(b) Coca Cola Company (ii) Joint Venture

(d) Pantaloon Retail (India) (iv) Public Sector Limited

Choose from the following options:

(a) A-(i); B-(ii); C-(iv); D-(iii) (b) A-(iv); B-(iii); C-(i); D-(ii)

Ans: (d) A-(iv); B-(i); C-(ii); D-(iii)

16. Which of the following is the correct merit of a Departmental Undertaking?

(a) No control can be exercised by the government over its functioning.

(b) The revenue earned by this type of enterprise goes directly into the treasury.

(d) It has no public accountability.

Ans: (c) When national security is concerned this form is most unsuitable.

17. Which of the following is the correct Limitation of a Statutory Corporation?

(a) In reality, a statutory corporations does not enjoy much operational

flexibility as its actions are subject to many rules and regulations.

(b) There is no government and political interference in its functioning.

(d) The government does not appoint any advisors to the boards of statutory corporations.

Ans: (a) In reality, a statutory corporations does not enjoy much operational

flexibility as its actions are subject to many rules and regulations.

18. Which of the following is the correct limitation of a Government Company?

(a) Although the government is the majority shareholder still the company law has much relevance in its operation.

(b) It is answerable to Parliament directly.

(d) The company cannot enter into any agreement without the government sanction.

Ans: (c) The main purpose of a government company, is defeated since the autonomy is on papers only.

19. ‘Their operations and activities extend beyond the physical boundaries of their own countries.’ Which feature of Global Enterprises does this statement signify?

(a) Product innovation (b) Advanced Technology

Ans: (d) Expansion of Market territory

20. Which of the following statements is NOT correct about objectives of Privatizing the Public Sector?

(a) It reduces the huge amount of public debt and interest burden and it also

helps the government to reduce its budget deficit.

(b) It encourages private sector to exploit the public resources for profit at

the cost of public welfare.

(d) It increases competition in the market for the benefit of consumers.

Ans: (b) It encourages private sector to exploit the public resources for profit at

the cost of public welfare.

21. Which of the following is a correct statement about a departmental undertaking?

(a) They are subject to accounting and audit controls as applicable to other Government departments.

(b) It is most suitable form of business enterprise for companies dealing in Fast Moving Consumer Goods like soaps and tooth paste.

(d) The revenue earned by a departmental undertaking wholly belongs to it.

Ans: (a) They are subject to accounting and audit controls as applicable to other Government departments.

22. Which of the following statement is Correct about a Statutory Corporation?

(a) It is formed by an executive order of the Government.

(b) It has to take permission of the government to take any decision.

(d) It combines the power of the Government and the operational flexibility

of a private enterprise.

Ans: (a) It is formed by an executive order of the Government.

23. Which of the following statements is correct about the role of public sector in India?

(a) Public sector has no role in the contemporary economic development of India.

(b) Public sector leads to concentration of economic power in the hands of the Government.

(d) Public sector has led to regional imbalance in economic development.

Ans: (c) Public sector has played a vital role in the development of infrastructure etc.

24. “There are usually restrictive clauses in the agreement relating to transfer of technology, pricing, dividend payment and tight control by foreign technicians etc.” Which feature of Global Enterprise does this statement signify?

(a) Advanced Technology (b) Foreign Collaboration

Ans: (c) Centralized Control

25. “Joint Ventures allow the companies to come up with something new and creative for the same market” Which benefit of joint venture does this statement signify the best?

(a) Access to technology (b) Increased resources

Ans: (a) Access to technology

26. Which of the following is a correct feature of a PPP?

(a) Arrangement with a private sector entity.

(b) Arrangement for the benefit of private sector entity.

(d) Entire earnings are given to the private entity.

Ans: (a) Arrangement with a private sector entity.

27. Which of the following statements is NOT true?

(a) ‘Air India’ is a limited company owned by Government of India

(b) ‘Reliance Industries’ is a public limited company

(d) ‘India Post’ is a departmental undertaking.

Ans: (c) ‘LIC’ is a government company

28. “In the Railway Budget, the concerned minister provides for more trains for his/her home state.” Which limitation of Departmental undertakings does this statement reflect?

(a) Lack of flexibility (b) Insensitive towards consumer’s needs

Ans: (c) Political Interference

29. The Tata Consultancy Services is a:

(a) Limited Liability Partnership (b) Government company

Ans: (c) Indian Private Company

30. Read the following statements and find the correct option:

1. Public sector refers to public companies

2. Public sector refers to public enterprises

3. Public sector refers to government sector

4. Public sector is owned by general public Options:

(a) 1 and 2 are correct (b) 3 and 4 are correct

Ans: (d) 2 and 3 are correct

31. Which of the following is NOT a correct feature of ‘Public Private

Partnership’?

(a) It is suitable for small projects

(b) It facilitates partnership between public and private sectors

(d) It pertains to high priority projects

Ans: (a) It is suitable for small projects

32. ‘Maruti Udyog Limited has been able to introduce new models of cars as a result of its joint venture with Suzuki and has thus enhanced its market share.’ Which feature of Joint Venture does this statement reflect?

(a) Low Cost of Production (b) Increased resources and capacity

Ans: (b) Increased resources and capacity

33. In which condition Government company form of PSU is not suitable?

(a) When high degree of public accountability is required.

(b) When national security is concerned.

(d) When goods and services are to be provided at reasonable prices.

Ans: (c) When flexibility of operations is required.

34. Identify the type of organization highlighted in the given statement:

“It is a government service or private business venture which is operated through a collaboration of government and one or more private sector companies”.

(a) Joint venture (b) Government company

Ans: (d) Public Private Partnership

35. A joint venture may come into existence when:

(a) A foreign investor acquires an interest in an existing local company

(b) A local firm acquires interest in a foreign firm

(d) None of the above

Ans: (c) Both local and foreign entrepreneurs jointly form a new enterprise

36. Privatisation of public sector refers to:

(a) selling debenture of public sector to the private sector

(b) selling shares of public sector to the private sector

(d) public sector companies competing with private sector

Ans: (b) selling shares of public sector to the private sector

37. Name the system by which management of a public enterprise is granted

more autonomy but held accountable for specified results.

(a) Business Ethics (b) Social Responsibility

(d) Privatisation

Ans: (c) Memorandum of Understanding

38. GAIL has 70% equity share in Brahmputra Cracker and Polymer Limited (BCPL), a subsidiary with Qil India Limited (Qil), Numaligarh Refinery Limited (NRL), Government of Assam, each having 10% equity share. In 2016, there were advertisement for vacancy in BCPL for 52 managerial and for engineer posts. BCPL was set up under Ministry of Chemicals and Fertilisers.

State what type of enterprise is BCPL?

(a) Private company (b) Government company

Ans: (b) Government company

39. Which statement is incorrect about the Departmental Undertakings?

(a) It has separate existence than government

(b) These are oldest and most traditional form of business organizations

(d) These are managed by deputed Managing Directors

Ans: (a) It has separate existence than government

40. Tata sons and Starbucks joined their hands together to transform Indian Beverage Industry by introducing freshly brewed flavored coffee. Identify such kind of arrangement.

(a) Public Private Partnership (b) Joint Venture

Ans: (b) Joint Venture

41. Which of the following statements is Merit of Government Companies:

(a) It is a private company owned by Government.

(b) It creates healthy competition in private sector.

(d) A change in Government leads to change in rules, policies and procedure of Government Company.

Ans: (b) It creates healthy competition in private sector.

42.Identify the correct limitation of organizations such as LIC, RBI and ONGC:

(a) These are formed on autonomous basis.

(b) They have independent financial structure.

(d) They have high level of efficiency and accountability.

Ans: (c) There is excessive interference in their work by Government.

43. Find the suitable terms for X and Y, as given below:

PPP is a partnership between (X) ............... and (Y) with clear

agreement on provision of a service or a project for public utility.

(a) X-Central Government; Y-State Government

(b) X-Government; Y-Public

(d) X-Government; Y-Private sector enterprise

Ans: (d) X-Government; Y-Private sector enterprise

44. Municipal of Mumbai decided to utilize the underground space and undertake parking project with individually managed parties: Trimplex. Name the type of enterprise referred here.

(a) Partnership (b) Cooperative Society

Ans: (c) Public Private Partnership

45. Which of the following is a Departmental Undertakings?

(a) Business Organisation established by the government and controlled by the Ministry concerned.

(b) Organisations incorporated under a special Act of Parliament or state legislature.

(d) None of the above

Ans: (a) Business Organisation established by the government and controlled by the Ministry concerned.

46. Identify the correct statement from the following:

(a) Statutory Corporations are autonomous organizations.

(b) Statutory corporations are part of government as well as private undertakings

(d) Statutory corporations are formed as per Companies Act 2003.

Ans: (a) Statutory Corporations are autonomous organizations.

47. Recently, Commerce Teachers’ Foundation (CTF) joined hands with one of the premier commerce education Institute of the country Institute of Cost Accountants of India(ICAI) entered into a strategic partnership for attaining their common goal of spreading commerce education. This alliance marked

beginning of a novel and exciting chapter in the journey of CTF. In the formal launch ceremony, the heads of both the organisations signed and exchanged a document. The document included all details about terms and conditions of the strategic alliance. Identify the document.

(a) Partnership deed (b) Memorandum of Understanding

Ans: (b) Memorandum of Understanding

48. ONGC finance head started independently taking decisions of borrowing from the Government and the public. He raised revenue derived from sale of goods and services. Identify the type of organisation. It also serves overseas.

Its shares are traded in BSE

(a) Public Limited Company (b) Multinational companies

Ans: (c) Statutory corporation

49. Such business enterprise helps the Parliament to exercise effective control over their operations and also ensures high degree of public accountability. The employees of such enterprise are government servants. Identity the Business Enterprise referred to here.

(a) Departmental undertaking (b) Statutory corporation

Ans: (a) Departmental undertaking

50. PPP stands for:

(a) Public Press Publication (b) Private Press Publication

Ans: (d) Public Private Partnership

51. Identify the correct difference between Public and Private Sector:

(a) Public sector means resources owned by any one in the public and private sector means resources owned by some private individuals.

(b) Public sector means resources owned by any one in the public and not hiding anything about it and private sector means resources owned by some private individuals secretly.

(d) Public sector means resources owned by any one in the public and private sector means resources owned by Government privately.

Ans: (c) Public sector means resources owned by Government and private sector means resources owned by private individuals.