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Questions and Answers
What are the two sectors into which the Indian economy can be classified?
Private sector and Public sector
What are the main objectives of private sector enterprises?
To earn profit and generate wealth for the owners
Name three forms of organization in the private sector mentioned in the text.
Sole proprietorship, Partnership, Joint Stock Company
What are the main objectives of public sector enterprises?
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What are the three forms of public enterprise mentioned in the text?
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Study Notes
Indian Economy Classification
- The Indian economy is classified into two main sectors: the private sector and the public sector.
Objectives of Private Sector Enterprises
- Aim to maximize profits and achieve high returns on investment.
- Focus on providing quality goods and services to meet consumer demands.
- Strive for innovation and competitive advantage to secure market share.
Forms of Organization in the Private Sector
- Proprietorship: Owned and managed by a single individual, offering complete control and profit retention.
- Partnership: Involves two or more individuals who share profits, responsibilities, and liabilities.
- Company: A legal entity that operates independently, with limited liability for its shareholders.
Objectives of Public Sector Enterprises
- Aim to provide essential services and goods to the public at large.
- Focus on promoting social welfare and balanced regional development.
- Seek to generate employment opportunities and improve the quality of life for citizens.
Forms of Public Enterprise
- Departmental Undertakings: Operated by government departments, handling public goods or services.
- Statutory Corporations: Established by an act of legislation, offering specific services under government control.
- Government Companies: Registered under the Companies Act, engaging in commercial activities with the government holding a majority stake.
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Description
Test your knowledge of private, public, and global enterprises in India with this quiz. Learn about the classification of the economy into private and public sectors, and understand the objectives and operations of private sector enterprises.
