question_answer

There is an organization in most traditional form of public sector enterprises which are established by the departments of the ministry and are considered part or an extension of ministry itself. It is not autonomous or independent legal institution. It acts through the government.

(a) Which type of organization is being referred to in above lines?

(b) Explain any two merits of this organization?

(c) Explain any two demerits of this organization?

Answer:

Ans.     (a) Departmental Undertaking

(b) Two merits:

(i) There is complete Government Control and these are answerable to Parliament;

(ii) They are a source of Income and they are suitable from national security point of view.

(c) Two Demerits:

(i) There is lack of flexibility an delay in decision making.

(ii) There is undue government intervention.