Question:
Discuss the merits and demerits of Departmental Undertaking.
Answer:
These are established as departments of the ministry and are financed, managed and
controlled by either central government or state government. Examples: Indian railways,
post and telegraph.
Features
- No separate entity: It does not have separate legal entity.
- Finance: It is financed by annual budget allocation of the government and all its earnings go to government treasury.
- Accounting and Audit: The government rules relating to audit and accounting are applicable to it.
- Staffing: Its employees are government employees and are recruited and appointed as per government rules.
- Accountability: These are accountable to the concerned ministry.
Merits
- It is more effective in achieving the objective laid down by government as it is under the direct control of govt.
- It is a source of government income as its revenue goes to government treasury.
- It is accountable to parliament for all its actions which ensures proper utilisation of funds.
- It is suitable for activities where secrecy and strict control is required like defence production.
Demerits
- It suffers from interference from minister and top officials in their working. .
- It lacks flexibility which is essential for smooth operation of business.
- It suffers from red tapism in day to day work.
- These organizations are usually insensitive to consumer needs and do not provide goods and adequate service to them.
- Such organisations are managed by civil servants and government officials who may not have the necessary expertise and experience in management.
Private, Public and Global Enterprises
Q 1.
Multinational Companies have done more harm than good. Explain.
Q 2.
Discuss the merits and demerits of Departmental Undertaking.
Q 3.
State the various types of organizations in the private sector.
Q 4.
Why is the government company form of organization preferred to other types in the public sector?
Q 5.
Explain three trends indicating changing role of public sector.
Q 6.
Can the public sector companies compete with the private sector in terms of profits and efficiency? Give reasons for your answer.
Q 7.
Explain the main features of Multinational Company.
Q 8.
"MNC's are in a position to exercise massive control on an economy."Substantiate.
Q 9.
Explain the merits and demerits of public-private partnership.
Q 10.
"Public sector has changed its role since 1991 a great deal". Do you agree? Justify your answer.
Q 11.
Give the meaning of Government Company. Explain three merits and three limitations of Government Company.
Q 12.
What was the role of the public sector before 1991?
Q 13.
What are the benefits of entering into joint ventures?
Q 14.
What is Statutory Corporation? Explain its features, merits and demerits.
Q 15.
Explain the concept of Public Sector and Private Sector.
Q 16.
Why are global enterprises considered superior to other business organizations?
Q 17.
Describe the Industrial Policy 1991, towards the public sector.
Q 18.
"Global enterprises are giant both in size and operations."Substantiate this statement.
Q 19.
Define Joint Venture and explain its major benefits.
Q 20.
How does the government maintain a regional balance in the country?
Q 21.
What are the different kinds of organizations that come under the public sector?
Q 22.
"The basic rationale of public sector has changed significantly."In the light of this statement explain any four initiatives taken by the government.
Q 23.
List the names of some enterprises under the public sector and classify them.
Q 24.
What is the difference between Public and Private sector?
Q 25.
Differentiate between Statutory Corporation, Departmental Undertaking and Government Company.
