Ch 3Private, Public and Global Enterprises — Class 11 Business Studies, concept-first.

A story that sets the stage - Anita, a Class XI student, was flipping through the newspaper when a headline caught her eye: the government planned to disinvest its shares in a few companies.

As you learnt in the previous chapter, businesses in India come in many forms and ownership patterns. Because the Indian economy contains both privately owned and government owned enterprises, it is d…

For the government to take part in business and the economic life of the country, it needs some kind of organisational framework through which to function.

A departmental undertaking is the oldest and most traditional way of organising a public enterprise.

A statutory corporation is a public enterprise brought into existence by a Special Act of Parliament.

A government company is established under The Companies Act, 2013 and is registered and governed by that Act.

At the time of Independence, the public sector was expected to play a leading role in the economy — either by taking part in business directly or by acting as a catalyst.

Development of infrastructure is a prerequisite for industrialisation in any country, and this was a central task of the public sector.

Regional balance means developing all regions and states evenly and removing regional disparities — a major responsibility of the government.

Economies of scale arise when very large-scale industries can produce more cheaply per unit because of their sheer size — and here too the public sector had to step in.

The public sector also acts as a check over the concentration of economic power in private hands.

Import substitution means producing goods at home instead of importing them — a key aim of the public sector during the early plan periods.

In its new industrial policy of 1991, the Government of India introduced four major reforms in the public sector.

Multinational Corporations (MNCs), also called global enterprises, have played an important role in the Indian economy over the last two decades and are now a common feature of most developing economi…

Meaning Any business organisation — private, government-owned or global — can join hands with another organisation for mutual benefit.

Joint ventures are of two types, distinguished by whether or not a new jointly-owned entity is created.

Businesses can achieve unexpected gains through joint ventures, which can be highly beneficial for both parties.

The Public Private Partnership (PPP) model allocates tasks, obligations and risks among public and private partners in the most optimal way.

- Public sector — organisations owned and managed by the central or state government. - Public enterprises — government-owned undertakings run with public funds and accountable to the public through P…

Private sector and public sector - India is a mixed economy where both private and government enterprises operate, so the economy is split into the private sector and the public sector.