Departmental Undertakings are __________ sector enterprises.

Departmental Undertakings are independent institutions.

• True

• False

Which of the following is a feature of Departmental Undertakings ?

• Accounting and Auditing is not required

• Lack of Public Accountability

• Difficult in Formation

• Under Governmental control

Which of the following is a merit of Departmental Undertaking ?

• Independent Functioning

• Income for Government

• Sensitive to Consumer needs

• Allows flexibility

Which two from the following are demerits of departmental undertaking ?

• Secrecy

• Red Tapism

• Inflexibility

• Public Unaccountability

Which Departmental Undertaking is most suitable where utmost secrecy is required ?

• Defence

• Broadcasting

• Aircraft

• Railways

Indian Railway is a part of Railway Ministry. It is organized, financed and controlled by the Railway Ministry. The finances are allocated from Government Treasury only. It is treated as part of the government and even the appointment, recruitment and selection of employees is done in the same way as civil servant.

Now Answer the following

Name the type of Public Sector Enterprise Railway is considered as-

• Departmental Undertakings

• Government Company

• Statuary Corporation

What is the status of employees working in railways ?

• Temporary employees

• Private employees

• Government employees

How does it get its finance ?

• Private Placement

• Government treasury

• Loans

What does it do with its revenue ?

• Used up to meet expenses

• Government treasury

• Donated as charity