Explain the following terms/concepts.

1) Public Sector Organisation
Ans:-
1. It is owned, managed, controlled, and financed by the government.
2. It includes Departmental Organisation, Statutory Corporation, and Government Companies.
3. Its main objective is to provide services to society.
4. It is managed by government officials or the Board of Directors.
5. It is large in size and operates on a large scale.

2) Private Sector Organisation
Ans:-
1. It is owned, managed, controlled, and financed by individuals or groups of individuals.
2. It includes Sole Trading Concern, Joint Hindu Family Firm, Partnership Firm, Joint Stock Company, and Cooperative Society.
3. Its main objective is to maximise profit.
4. It is managed by the owner himself or by their elected representatives.
5. It generally operates in industrial and commercial areas only.

3) Departmental Organisation
Ans:-
1. It is owned, managed, controlled and financed by the government.
2. It is managed by government officials of the concerned ministry.
3. They do not have autonomy in decision making.
4. They do not have separate legal entity distinct from government.
5. It is funded through the annual budget of the government.

4) Statutory Corporation
Ans:-
1. It is formed under a Special Act of Parliament or State Legislature.
2. It is managed by the Board of Directors who is appointed by the government.
3. They enjoy autonomy in decision making.
4. They have separate legal entity distinct from the government.
5. It is funded by the government initially and also in need of additional capital.

5) Government Company
Ans:-
1. It is a company where 51% of the paid up capital is held by the Central Government or State Government jointly or individually.
2. It is managed by the Board of Directors appointed by Government and Shareholders.
3. It is formed and registered under the Companies Act, 2013.
4. They can borrow funds by issuing shares to the public or through debentures, deposits, etc.

6) Multinational Corporation
Ans:-
1. It is a business organisation that operates in many different countries.
2. It conducts business activities in more than one country.
3. It is controlled through a centrally located head office.
4. They are also called as transnational or international corporations.
5. Example: Bata India, Infosys, Tata Motors, etc.