Question

Why is the government company form of organisation preferred to other types in the public sector?

Answer 1

Answer:

The Government company form of organisation preferred to other types in the public sector due to the following reasons :  

• It is easy to form a Government company because there is no need for a special act.
• The management of a Government company is more flexible than a departmental organisation.
• The directors of a Government company can take quick decisions according to the circumstances , because they are not bound , like departmental organisation, by rigid rules and regulations.
• It enjoys freedom from financial and other controls which a departmental undertaking subjected to.
• It functions with caution because it is subjected to the scrutiny of Parliament.
• It will encourage a healthy competition between Government and private company.

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Explanation: