BBA 1st Year Business Environment Economic Systems Very Short Question Answer : BBA Semester II Business Environment Book Code 205 Unit 2 Section A Very Short Question Answers Practice Set Notes. Syllabus Covered : Economic Systems – Capitalism, Socialism, Communism, Mixed Economy Public Sector and Private Sector.
BBA 1st Year Economic Systems Short Question Answer Index
BBA Economic Systems 1st Year Short Question Answer | Page 1
Economic Systems BBA 1st Year Short Question Answer | Page 2
B.B.A. 1st Year Short Question Answer | Page 3
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Section – A (Very Short Answer Questions
BBA 1st Year Business Environment Economic Systems Very Short Question Answer
Q. 1. Explain privatization.
Ans. Privatization is the general process of involving the private sector in the ownership or operation of a state owned enterprise.
Q. 2. Growth of private sector is helpful in the development of public sector. Give two genuine reasons.
Ans. (a) Making public sector units more competitive.
(b) Enabling the profit earning public sector units to modernize and diversify the business.
Q. 3. What do you mean by the term “Public Enterprises”?
Ans. All such enterprises which are owned, managed and controlled by the state or local government are termed as “Public enterprises.”
Q. 4. Give the reason which leads to the problem of control and public accountability in the public enterprise.
Ans. The reason behind the problem is undue influence of political leaders several committees and commissions are appointed for different issues etc.
Q. 5. What are some of the core sectors of economy where I public enterprise plays a major role?
Ans. Public enterprise play an important role in the development of core sectors of economy such as : coal, power, iron, steel etc. About 5S% of total investment of public enterprises is . invested in these industries.
Q. 6. How administration problem leads to low profitability ility?
Ans. Administration means an overall control of each and every activity from paper work to implementation of the plans in reality. Among them, delay in project completion, red-tapes, lack of determination of responsibility lead to low profiteers.
Q 7. What is the characteristics company?
Ans. A government company – major contribution by government in share capital, the accounts and audit functions which are performed according to companies act.
Q. 8. Mention some disadvantages of mixed ownership cooperation.
Ans. (a) Conflicts are bound to arise as public and private interests are opposed to each other.
(b) Profit motive creates, conflicts over basic policies.
Q. 9. What are the various forms of public enterprises?
Ans. Public enterprises are said to behaving the various following forms as given below:
(a) Departmental organization.
(b) Public corporation.
(c) Government company.
(d) Mixed Ownership Corporation.
(e) Holding company.
Q. 10. Write down the four importance of public enterprises in India.
Ans. (a) Better allocations of resources.
(b) Social justice.
(c) Economic stability.
(d) Generation of surplus.
Q. 11. What is public enterprise?
Ans. The term public enterprise usually refers to government ownership and active operation of agencies engaged in supplying the public with goods and services which alternatively might be supplied by private enterprise operations.
Q. 12. Define mixed-economy. (2013)
Ans. An economic system in which both the private enterprise and a degree of state monopoly (usually in public services, defense, infrastructure, and basic industries) co-exist. All modern economies are mixed where the means of production are shared between the private and public sectors, also called dual economy.