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Question
Answer in brief.
State any four merits of Government Company.
Solution
- Profitability and Accountability: It works on business principles and follows a commercial approach. Though not profit oriented like the private sector, it does make a reasonable profit which is used for public welfare, modernisation, renovation, and development. Moreover, its performance can be evaluated by the Parliament as it has public accountability.
- Internal Autonomy: Government Company enjoys financial and administrative autonomy. Its dependence on Government authority is minimum. It has its own capital structure, financial plan, borrowing powers, and so on.
- Government Ownership: The ownership of the government company rests with Central or State Government who owns the major capital of the company and as such looks after its management and control. The government always promotes the public welfare.
- Foreign Capital and Technical Know how: As the government provides 51% of the capital, the rest 49% can be raised through foreign investment. By seeking foreign capital, Government companies bring advanced technology and technical know how.
- Acquisition of Sick Units: A government company can acquire a sick unit in the private sector without rationalisation. It can be acquired by purchasing 51% of the share capital of a private company.
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Explain the following term/concept.
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Distinguish Between.
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Distinguish Between.
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Attempt the following.
Features of Government Company.
Attempt the following.
Demerits of Government Company.
Answer the following in detail.
Explain Government Company and its features.
Answer the following in detail.
Explain merits and demerits of Government Company.
What is meant by a Government Company?
What are the Features of Government company? (Any 5)
Match the pairs.
| Group ‘A’ | Group ‘B’ | ||
| A) | BHEL | 1) | Special Legislature |
| B) | Statutory Corporation | 2) | 49% paid up capital by govt. |
| C) | Departmental Organisation | 3) | Service Motive |
| D) | Private Sector | 4) | Railway |
| E) | Public Sector | 5) | Profit Motive |
| 6) | 51% paid up capital by govt. | ||
Match the pairs.
| Group 'A' | Group 'B' | ||
| A) | BHEL | 1) | Special Legislature |
| B) | Statutory Corporation | 2) | 49% paid up capital by govt. |
| C) | Department Organisation | 3) | Service Motive |
| D) | Private Sector | 4) | Railway |
| E) | Public Sector | 5) | Profit Motive |
| 6) | 51% Paid up capital by govt. | ||
Match the pairs.
| Group ‘A’ | Group ‘B’ | ||
| A) | BHEL | 1) | Special Legislature |
| B) | Statutory Corporation | 2) | 49% paid up capital by govt. |
| C) | Departmental Organisation | 3) | Service Motive |
| D) | Private Sector | 4) | Railway |
| E) | Public Sector | 5) | Profit Motive |
| 6) | 51% paid up capital by govt. | ||
