Question

Match the correct pairs.

Group 'A'	Group 'B'
a) Departmental organization	1) Private sector
b) Statutory company	2) Operates globally
c) Multinational company	3) Profit oriented
d) Public sector enterprise	4) Objectives based agreement
e) Joint venture	5) Service oriented
	6) Established by passing a special act
	7) Government company
	8) Sole-trading
	9) Owned by government
	10) Temporary partnership

Answer 1

Group 'A'	Group 'B'
a) Departmental organization	7) Government company
b) Statutory company	6) Established by passing a special act
c) Multinational company	2) Operates globally
d) Public sector enterprise	9) Owned by government
e) Joint venture	10) Temporary partnership

Explanations:
a) A departmental organisation is a government company (i.e., public sector enterprise) that is created by the ministries and is considered as their extension. For instance, railways and telegraph are examples of departmental organisation.

b) A statutory corporation is formed by passing a special Act of Parliament. These corporations are wholly owned by the state, with ultimate financial responsibility (both profit and loss) lying with the government. Examples of statutory corporation are State Bank of India, Food Corporation of India, etc.

c) A multinational company (MNC) operates globally, i.e. in more than one country. MNCs are big industrial organisations in terms of size, range of products, use of advanced technologies and sophisticated marketing strategies. Hence, MNCs are able to capture a bigger share of the market compared to other enterprises.

d) Public sector enterprises are directly owned and operated by the government. These organisations are either partly or completely owned by the central or state governments. Bharat Heavy Electricals Ltd, Oil India Ltd and Life Insurance Corporation of India are examples of public sector enterprises.

e) A joint venture is a temporary partnership. This is because it is a business agreement in which two or more organisations come together for mutual benefits and gains for a fixed period of time. Business organisations in a joint venture share not only the physical, financial and human resources available but also the risks and profits of the business.