Question:
Can the public sector companies compete with the private sector in terms of profits and efficiency? Give reasons for your answer.
Answer:
It is difficult for a public sector undertaking to compete with a private sector undertaking in terms of profits due to following reasons:
- Motive of public sector is not profit: Public sector works not for profit but for social welfare. It gives first priority to social welfare then it is almost impossible for it to compete with private sector enterprise on the basis of profit which mainly works for profit only.
- Public sector takes care of strategic industries: Public sector invests in strategic areas even when these industries have low return generating capacity and long gestation period. These industries do not give monetary returns but if we consider their return in development of our economy otherwise their return is really high.
- Public sector provides many facilities free of fast to the weaker section of society:
We can't expect a government hospital or a government school to generate profits. Many public sector undertakings provide many facilities for free or at a very low cost due to the benefits that it gives to other sectors of the society.
It is difficult for a public sector undertaking to compete with a private sector undertaking in terms of efficiency due to following reasons:
- Dependence on authorities for taking minor decisions: Public Sector undertakings follow a protocol for everything. It leads to delay in decision making and inefficiency in operations.
- Job security: Workers of Public Sector enjoy job security. It reduces their performance as they know that in spite of bad performance there is no fear of losing job.
- Red tapism and bureaucracy: In public sector undertakings there is red tapism and bureaucracy. It leads to inefficiency in operations.
Private, Public and Global Enterprises
Q 1.
Multinational Companies have done more harm than good. Explain.
Q 2.
Discuss the merits and demerits of Departmental Undertaking.
Q 3.
State the various types of organizations in the private sector.
Q 4.
Why is the government company form of organization preferred to other types in the public sector?
Q 5.
Explain three trends indicating changing role of public sector.
Q 6.
Can the public sector companies compete with the private sector in terms of profits and efficiency? Give reasons for your answer.
Q 7.
Explain the main features of Multinational Company.
Q 8.
"MNC's are in a position to exercise massive control on an economy."Substantiate.
Q 9.
Explain the merits and demerits of public-private partnership.
Q 10.
"Public sector has changed its role since 1991 a great deal". Do you agree? Justify your answer.
Q 11.
Give the meaning of Government Company. Explain three merits and three limitations of Government Company.
Q 12.
What was the role of the public sector before 1991?
Q 13.
What are the benefits of entering into joint ventures?
Q 14.
What is Statutory Corporation? Explain its features, merits and demerits.
Q 15.
Explain the concept of Public Sector and Private Sector.
Q 16.
Why are global enterprises considered superior to other business organizations?
Q 17.
Describe the Industrial Policy 1991, towards the public sector.
Q 18.
"Global enterprises are giant both in size and operations."Substantiate this statement.
Q 19.
Define Joint Venture and explain its major benefits.
Q 20.
How does the government maintain a regional balance in the country?
Q 21.
What are the different kinds of organizations that come under the public sector?
Q 22.
"The basic rationale of public sector has changed significantly."In the light of this statement explain any four initiatives taken by the government.
Q 23.
List the names of some enterprises under the public sector and classify them.
Q 24.
What is the difference between Public and Private sector?
Q 25.
Differentiate between Statutory Corporation, Departmental Undertaking and Government Company.
