Anjana and Babita are best friends. Both of them are commerce students. Anjana tells Babita that all government undertakings have common features and all organizations under Public Sector enjoys same merits and demerits. Babita tells Anjana that it is not true. There are many forms of Public Sector undertaking and each form has its own merits and demerits. |
(a) Who of the two is right? |
(b) Name different forms of organizations in public sector. |
(c) Give three points of difference in these forms of organizations. |
Answer:
Ans. (a) Babita is right.
(b) Different forms of organizations in public sector are:
(i) Government Company
(ii) Departmental Undertaking
(iii) Statutory Corporation
(c) Any three
Basis
Statutory Corporation
Departmental Undertaking
Government Company
Formation
By a special Act of Parliament or State legislature
By a ministry
Under Companies Act with or without private sector participation
Ownership
Wholly owned by the government
Wholly owned by the government
At least 51% share capital is held by the government.
Autonomy
Sufficient
No Autonomy
Highest
Legal status
Separate Legal Entity
No Separate Legal Entity
Separate Legal Entity
Public Accountability
Moderate
Highest
Low
Personnel
Not Government Employees but hired under a contract of service
Government Employees
Not Government Employees but hired under a con- tract of service
Funds
Financed from its own resources which may include issue of shares and debentures.
Financed from Government Budget
Financed from its own resources which may include issue of shares and debentures.
Suitability
Industrial and Commercial Undertakings
Defense, services of public utility like education, health etc.
Industrial and Commercial Undertakings
Example
LIC, GIC, SBI, RBI etc
Railways, Post and Telegraph
SAIL, GAIL, BHEL etc.
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