among company form of organisation and statutory corporation which of two would you recommend for managing public enterprise and why?
Answers
Answer:
Form of Public Sector Enterprises Public sector organisations are formed ... (ii) Public corporation/Statutory corporation
STATUTORY CORPORATION
Explanation:
The statutory corporations are fully owned by the government, so raising capital for them is an easy process. They can easily raise the required funds by floating bonds at a low rate of interest. Seeing that these bonds are safe, the public also feels comfortable in subscribing to such bonds.
A statutory corporation is a body corporate established by a special act of parliament or by the central or state legislature. It is wholly financed by the government. Its powers, objects, limitations, etc. are also determined by the act of the legislature. It is also called” public corporation”.
The state assists the statutory corporations by subscribing to full capital and it is fully owned by the state. The government selects the board of directors and they manage and operate such corporations. It enjoys the financial independence and is answerable to legislature only which creates it.
To Learn more:
i) what are the merits of statutory corporations?
https://brainly.in/question/4693282
ii) "company form of organisation emerged essential because of "?
https://brainly.in/question/1513779