OCM

forms of business organisation 2

Public sector vs Private sector

In India, there is co-existence of Private and Public sector. Private sector organisations are owned by individual or group of individuals whereas, Public sector organisations are owned by the Government.

Multiple Choice

private sector is owned by ?

• government

• MNC

• defence

• none of the above

Public Sector Organisations are classified as follows:

1. Departmental Organisation.

2. Statutory Corporation.

3. Government Company

The organisation which is owned, managed, controlled and financed by government is known as Departmental Organisation

Multiple Choice

who owns departmental organisation

• governemnt

• public

• both

• none of the above

MERITS OF DEPARTMENTAL ORGANISATION

1. Direct Control:

In departmental organisation there is a direct and absolute control of government over the enterprise.

2. Direct Revenue to the Government:

The revenues of the enterprise directly go to the Government treasury in a Departmental Organisation.

3. Less Overheads:

As departmental organisations are operated by government themselves, the administrative overhead charges are less.