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Question
Distinguish Between.
Departmental Organisation and Multinational Corporation.
Solution
| Points | Departmental Organisation | Multinational Corporation |
| 1. Meaning | The organisation which is owned, managed, controlled, financed, and operated by the government is known as Departmental Organisation. | Multinational Corporation is a company which is incorporated in one country and has business units in several countries |
| 2. Capital | The capital of the departmental organisation comes from the annual budget appropriations of the government. | The capital is contributed by the shareholders or financial institutions in several countries. |
| 3. Management | It is managed by government officials of the concerned ministry. | Multinational corporation is managed by a parent company. It manages affairs of the subsidiary from the respective home country. |
| 4. control | It is controlled by the concerned ministry. | Multinational corporation are controlled by respective parent companies and mostly home strategic. |
| 5. Legal status | There is no separate legal status distinct from the government. | It has separate legal status |
| 6. Borrowing power | Departmental undertaking cannot borrow from the public. It has to depend on the budget allocated by the government. | Multinational corporations use resources of different countries. |
| 7. Ownership | Departmental undertaking is fully owned by the Government. | Ownership of MNC is in the hands of shareholders of the company. |
| 8. Privileges and Concessions | It receives the highest government concessions and privileges. | MNC does not have any concessions. They have to pay duties and taxes. |
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RELATED QUESTIONS
Give one word/phrase/term.
The organisation which is owned, managed, controlled, and financed by government.
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The oldest form of business organisation under the public sector.
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The organisation which performs it’s all activities as an integral part for government only.
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The organisation which is financed through annual budget appropriations made by the legislature.
State True or False.
Departmental organisation performs its all activities separately from the government.
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Departmental organisation is the oldest form of business organisation under public sector.
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_____________ is owned, managed, controlled, and financed by government.
Answer in one sentence.
What is a Departmental Organisation?
Correct the underlined word and rewrite the following sentence.
Departmental Organisation has separate existence from the government.
Study the following case/situation and express your opinion.
- Name the business organisation, which is self-financed, delegates authority, and run by the government as an integral part of it.
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Distinguish Between.
Department Organisation and Statutory Corporation.
Justify the following statement.
Departmental Organisations are run for providing public services.
Justify the following statement.
There is direct control of Government on departmental organisation.
Attempt the following.
Merits of Departmental Organisation.
Attempt the following.
Demerits of Departmental Organisation.
Answer the following in detail.
Explain the Departmental Organisation and its features.
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. | ||
