Government Company Features Merits And Demerits, Cash Transfers Merits And Demerits The Economic Times

It can follow a flexible policy to the changing business conditions.

What is flexible furlough. The following are some of the advantages or merits of government companies. Poor management labour relation. A government company can manage its affairs independently.

It has a separate legal entity. The main features of government companies are as follows. Government being the sole or the bulk shareholder dictates its terms and the management is conducted by the board of directors according to the will of the government.

Government company facilitates all round industrial development by taking up projects in the neglected areas where private sectors hesitate to invest. This video is highly rated by commerce students and has been viewed 1913 times. Meaning of government company.

Merits of government companies. Better relationship with labour force. The formation of a government company is comparatively easy.

Lack of autonomy flexibility. No prior approval of the parliament is required. Ministerial interference in the working of the government company is found to be frequent and far reaching.

Demerits of government companies. The annual reports of the government companies are required to be presented in parliament. Merits of a government company.

Better deal to consumers. It is registered under the companies act. A government company can be easily formed under the companies act just by an executive decision of the government.

It can sue and be sued and can acquire property in its name. Government companies are free to raise finance from private investors financial institutions and other companies apart from government funding. Advantages of government company.

General advantages of government undertakings. Features of government companies. It provides a healthy competition to private sectors.

Equal distribution of wealth. Deaths insanity insolvency of shareholders or directors do not affect the companys. Oct 08 2020 features merits and demerits of government company and changing role of public sector commerce video edurev is made by best teachers of commerce.

The followings are some of the disadvantages of a government company. The relatively independent character of the government company has proved to be farce. The greatest merit of this form of organization lies in its flexibility in running the business of the enterprise.

The important advantages of company form of ownership are as follows. The liability of shareholders unless and otherwise stated is limited to the face value of shares held by them or guarantee given by them. Following are the advantages of a government company.