Public Sector, Private Sector and Global Enterprises — OCM STD 11 Commerce — Question
Gujarat BoardEnglish MediumSTD 11 CommerceOCMPublic Sector, Private Sector and Global Enterprises3 Marks
Question
Show the classification of business enterprise according to scope.
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Answer
Business enterprises are seen in different form in the world. It includes the business enterprises of private and public sector. The classifications of can be done from the view point of its scope as under.
Domestic or Local Enterprise
The activities of business are limited due to the boundary of its own country are called domestic or local enterprises.
Initially all business units study their own environment and formulate business strategy.
Global Enterprise : The following three types of business are called global enterprises
$(A)$ International Enterprise. $(B)$ Multinational Enterprise $(C)$ Transnational enterprise.
International Enterprise :
When business unit expands its business activity beyond the boundary of the nation to more than one country is called international enterprise.
Multinational Enterprise :
When a business unit of the basis of its experience of local market expands its business activities in foreign markets it is called multinational enterprise.
Transnational Enterprise :
This type of enterprise is involved in manufacturing, sales, investments, and other business activities all over the world. Such type of enterprises consume the combined wealth of the entire world and earn profit from the market of the world.
Conclusion :
The development business enterprise depends on the policy of local government and industrial policy of foreign government.
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