Question

9)In an organization, there are 51% share are owned by Central
Government. It has a separate legal entity & its established under the
Indian Companies Act, 2013& is registered & governed by the provision
of Indian companies Act, 2013. It is established for purely business
purpose & compete with the companies in private sector in true spirit.
i)Identify the form of organisation being referred in the above line.
ii)Explain the merits of such organisation.
(3)

Answer 1

Answer:

These are considered as Government Company and main advantage is that there is less chance of bad debts of funds invested with these companies.. Income may be more or less.