NCERT Solutions for Class 11 Business Studies Chapter 3

The NCERT Solutions for Class 11 Business Studies Chapter 3 have answers to all the textbook questions that are given at the end of this chapter. All the answers are explained in detail with relevant examples, wherever required so that students can understand them thoroughly. Using these resources along with the textbook itself will help students prepare better for the exams. Students should also refer to these solutions in order to get an idea of how to frame their answers. NCERT Solutions for Class 11 Business Studies Chapter 3 are also a great resource for last-minute preparations.

Class 11 NCERT Solutions Business Studies – Chapter 3 

Access NCERT Solutions for Class 11 Business Studies – Chapter 3 Private, Public and Global Enterprise

NCERT Solutions for Class 11 Business Studies Chapter 3 Private, Public and Global Enterprises

Chapter 3 of Class 11 Business Studies covers the different types of business enterprises on the basis of who owns them. The chapter talks about 3 different types of enterprises namely Private, Public and Global Enterprises. Private enterprises refer to the companies owned and operated by individuals. Public enterprises are wholly or partly owned by the government. Global enterprises are the ones that are owned by foreign entities. Students will get to learn the features and the importance of all these enterprises in an economy in this chapter.

Private Sector and Public Sector Enterprises

Private sector enterprises are businesses that are owned by individual people or groups and not by the government. The main type of organisations that fall under this category are partnerships, businesses, and companies. Public sector enterprises, on the other hand, are owned by the government. These include state or central government enterprises. The government participates in the economic activities of the country through public sector enterprises. These are primarily funded by the government and the main motive of these enterprises is the welfare of the people. The public enterprises are accountable to the people for whatever they do, and the control and management lie either entirely or partly with the government. 

Department Undertakings and Statutory Corporations

Department undertakings are recognised departments by the ministry and are fully controlled and financed by the state or central government. Indian Railways and the Telegram are examples of departmental undertakings and statutory corporations. There are no separate entities in these undertakings and the finance comes directly from the government. The merits of these undertakings include achieving the goals of the government, a source of national income, and allowing the government stricter control when it comes to defence production and other sensitive areas of production. However, these organisations lack flexibility and suffer red-tapism. 

Statutory corporations on the other hand are created by acts that specifically mention their functions. They are made by the Parliament and the State Assembly. They have their staff and are independently financed, like Unit Trust of India and LIC. This gives these enterprises internal autonomy and the ability to make quick decisions. However, there is little to no operational flexibility in these organisations, which leads to the development of monopolies. 

Government Companies 

The provisions of the Companies Act govern the formation of government companies, and an executive decision of the government is required. At the same time, it has management and operational autonomy. This category includes companies such as Hindustan Cables and State Trading Corp. They have the ability to control the market and put a stop to unethical business practices. However, such businesses frequently face government interference in their decision-making and bear constitutional responsibility that prevents them from making profit.  

Why Choose Extramarks?

Extramarks has compiled answers to all the textbook questions. Students can access Class 11 Business Studies Chapter 3 NCERT Solutions and can make the most of the study material. The Class 11 Business Studies Chapter 3 NCERT Solutions are precise and reliable as they are prepared by subject matter experts. They are also made keeping in mind the guidelines by the CBSE.

Solved Examples 

Question: Who owns public sector enterprises?

  1. Joint Hindu Families
  2. Government 
  3. Private parties
  4. MNCs 

Answer: 2. Government

Question: What is the percentage of the minimum paid-up capital held by the government in a public enterprise?

  1. 51%
  2. 49%
  3. 50%
  4. 100%

Answer: 1. 51%

FAQs (Frequently Asked Questions)

The role of the public sector before 1991 was to develop the country’s heavy industries and infrastructure because there were no heavy industries or infrastructure before 1991. The public sector was crucial in setting up steel plants in the rural backward regions to remove the rural-urban divide. In addition, the public sector ensured that the country’s economic wealth was not monopolised. It was also important for India to become self-reliant by reducing imports and increasing the production of all essential goods domestically.  

The private sector is companies, organisations or institutions owned and run by an individual or a group of individuals. The sole purpose of the private sector enterprises is to earn profits. The public sector is those organisations or institutions that are partly or completely owned and run by the government. Through its participation in the public sector, the government accelerates the economic growth of the country. The purpose of the public sector is the welfare of the people. 

Global organisations are considered superior to other organisations due to several factors. Firstly, global enterprises have a wide market, which means they have greater geographic and resource accessibility. Secondly, global organisations have several options and sources for raising funds due to their international presence. Thirdly, because of the sufficient availability of funds, global enterprises have a superior and efficient research and development network that helps them create high-quality products.

Extramarks provides comprehensive NCERT Solutions for Class 11 Business Studies Chapter 3 that are easily accessible to students. Each answer is explained in an easy to understand manner, which helps students prepare for exams in a better way.

There are different types of organisations that fall under the public sector. The first of them is departmental undertaking, where the enterprises are established as ministry departments and are seen as the extension of the ministry. Examples of such organisations are railway and telegraph. 

The statutory organisations are formed by a special Act in the Parliament and are a financially independent body and have autonomy in managing their own affairs. Government companies also fall under the category of public sectors and have ownership of the government. These companies are established solely for business purposes. 

The different types of organisations in the private sector include various sole proprietorships, partnership, and other types of companies and societies. Sole proprietorship refers to a type of organisation where the management and decision-making authority is under the proprietor. This single individual faces all the risks and enjoys all the profits made. Such a type of company is usually an individual-owned business. A partnership is where two or more people have associated with each other to run the business together, and the risks and profits are shared between them. This is a very commonly seen method of managing a business. The other type of organisations in this category includes joint Hindu families, Joint Stock companies, and cooperative societies. 

The government maintains a regional balance in the country by building steel plants in rural areas. It helps in the development of the rural economy by generating employment and providing financial stability to the rural populations. Similarly, several other industries are set up by the government in the rural areas to increase the contribution of rural resources and population to the country’s economic development. The direct impact of setting up industries is that it increases the connectivity of rural areas by building infrastructure in the form of roads, railways, bridges, etc. 

A public-private partnership is the long-term involvement of the private sector in government-based projects. In this type of partnership, both the public and private sectors share risks, costs, finances, tasks, obligations, and technology with each other. The PPPs takes advantage of the technical skills and the finances of the private sector.

In this, the public sector partners can be ministries, government bodies and the private sector partners can be businesses, investors with technical expertise. Examples of PPPs are power generation, railways, infrastructure, water, hospital etc.