POM-U1-Q6

1.What is the primary objective of a public sector enterprise?

• a) Maximizing profits

• b) Providing public services
  

• c) Reducing costs

• d) Promoting competition

2.Which of the following is a characteristic of a private sector enterprise?

• a) Owned by the government

• b) Funded through taxes

• c) Driven by profit motive

• d) Focused on social welfare

3.Which of the following is an example of a public sector enterprise in India?

• a) Tata Motors

• b) Reliance Industries

• c) Indian Oil Corporation

• d) Infosys

4.Public sector enterprises are primarily funded by which of the following?

• a) Private investors
  

• b) Government revenues

• c) Stock market

• d) Bank loans

5.What is a key advantage of private sector enterprises?

• a) Access to unlimited government funds

• b) Flexibility in decision-making

• c) Guaranteed market monopoly

• d) No competition

6.Which sector is typically more responsive to market changes?

• a) Public sector

• b) Private sector
  

• c) Both equally responsive

• d) Neither sector

7.Public sector enterprises often face challenges related to which of the following?

• a) High competition

• b) Political interference

• c) Lack of capital

• d) Rapid innovation

8.Which of the following is a feature of privatization?

• a) Increased government control

• b) Reduction in public accountability
  

• c) Elimination of competition

• d) Decrease in operational efficiency

9.In which sector are enterprises generally more focused on social objectives?

• a) Public sector

• b) Private sector

• c) Both sectors equally

• d) Neither sector

10.Which of the following is an advantage of public sector enterprises?

• a) High profitability

• b) Social and economic equity

• c) Fast decision-making

• d) High level of innovation