Question

merits and demerits of government company​

Answer 1

Merits of a Government Company

The government organization enjoys all autonomy in management decisions and flexibility in day to day activities. These companies control the local market and sustain it to curb the unhealthy business practices.

1) Lacks Flexibility:The government companies have to follow the policies & rules framed by the Legislative or Parliament & most of the rules are rigid. (2) Lack of Motivation: The Directors other officers of Government company are least interested operational activities of government company

Answer 2

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Merits of Government Company :-

• Easy to establish. Government companies are easy to be established.

• Large capital base. This is one important advantage of government companies.

• Greater flexibility.

• Professional management.

• Facilitates private participation.

Demerits of Government Company :-

• Lack of initiation and efficiency.

• Lack of selection of goods.

• Lack of flexibility.

• Slow growth.

• Poor management.