Question

5. Discuss the features of departmental undertakings. Under what conditions are these undertakings
suitable for organising public enterprises?​

Answer 1

Features of Departmental Undertaking

1. Audit and Accounting

Normal budgeting, accounting and audit procedures are applicable to departmental undertakings just like government departments.

2. Managed by Civil Servants

The departmental undertakings are managed by the civil servants, who are subject to the same services condition as applicable to civil servants of the government.

3. Sovereign Immunity

Without the consent of the government, a departmental undertaking cannot be sued at all.

Answer 2

Answer:

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Explanation:

Advantages Provides easy information.

• It is easy to set up departmental undertaking.
• ...Direct control over Parliament or State Legislature.
• ...Tax on the Public is lesser. ...Tool for social change.
• ...Avoid misuse of Government Treasury.
• ...Monitored by the rules and regulations of the Ministry.