Government company Quiz-1

What is a government company?

• A company owned and operated by the government

• A company that operates independently of the government

• A company funded by the government but privately owned

• A company involved in political activities

Answer explanation

A government company is a company owned and operated by the government.

The main objective of a government company is to:

• Maximize profits for shareholders

• Generate revenue for the government

• Provide essential services to the public

• Promote international trade

Answer explanation

The main objective of a government company is to provide essential services to the public.

Which of the following is NOT a feature of a government company?

• It is a company registered under the Companies Act, 2013.

• The central or state government holds at least 51% of the paid-up share capital of the company.

• The company is subject to the same laws and regulations as a private company.

• The company is managed by a board of directors, which is appointed by the government.

Answer explanation

A government company is not subject to the same laws and regulations as a private company.

Which of the following is NOT a benefit of government companies?

• They can provide essential services at a lower cost.

• They can help to achieve social objectives.

• They can be more efficient than private companies.

• They are less susceptible to political interference.

Answer explanation

Government companies are generally not more efficient than private companies.

Which of the following is a major difference between a government company and a statutory corporation?

• A government company is registered under the Companies Act, 2013, while a statutory corporation is created by a special act of Parliament.

• The central or state government holds at least 51% of the paid-up share capital of a government company, while the government does not hold any shares in a statutory corporation.

• The board of directors of a government company is appointed by the government, while the board of directors of a statutory corporation is appointed by the President of India.

• A government company is subject to the same laws and regulations as a private company, while a statutory corporation is subject to a special set of laws and regulations.

Answer explanation

A government company is registered under the Companies Act, 2013, while a statutory corporation is created by a special act of Parliament.

Which of the following is the definition of a government company as per the Companies Act, 2013?

• A company in which not less than 51% of the paid-up share capital is held by the Central Government, or by any State Government or by both together, and which is a subsidiary of a Government company.

• A company in which not less than 51% of the paid-up share capital is held by the Central Government, or by any State Government or by both together, and which is not a subsidiary of a Government company.

• A company in which not less than 50% of the paid-up share capital is held by the Central Government, or by any State Government or by both together, and which is a subsidiary of a Government company.

• None of the above.

Answer explanation

A government company is defined as a company in which not less than 51% of the paid-up share capital is held by the Central Government, or by any State Government or by both together, and which is not a subsidiary of a Government company.

Which of the following is a government company?

• Bharat Heavy Electricals Limited (BHEL)

• Indian Oil Corporation Limited (IOCL)

• National Thermal Power Corporation Limited (NTPC)

• All of the above

Answer explanation

All of the above options, Bharat Heavy Electricals Limited (BHEL), Indian Oil Corporation Limited (IOCL), and National Thermal Power Corporation Limited (NTPC), are government companies.

Which of the following is a benefit of being an employee of a government company?

• Job security.

• Pension.

• Medical benefits.

• All of the above.

Answer explanation

Being an employee of a government company offers job security, pension, and medical benefits, making it a beneficial choice.

Which of the following is a responsibility of an employee of a government company?

• To serve the public interest.

• To obey the rules and regulations of the company.

• To maintain confidentiality.

• All of the above.

Answer explanation

An employee of a government company is responsible for serving the public interest, obeying company rules and regulations, and maintaining confidentiality. All of the above choices are correct.

Which of the following is NOT a mandatory document for a government company?

• Memorandum of Association

• Articles of Association

• Certificate of Incorporation

• Board of Directors' Report

Answer explanation

The Board of Directors' Report is not a mandatory document for a government company. It is not required by law.