Q.16 “The public corporation has been the most common form of organization for public enterprise in recent times.” Explain.

CBSE Class 11-commerce Answered

Q.16 “The public corporation has been the most common form of organization for

public enterprise in recent times.” Explain.

Asked by sntshtrk530 | 12 Sep, 2017, 03:55: PM

Expert Answer

A public corporation is formed by a Special Act of Parliament. Powers, functions, rules and regulations for employees of a statutory corporation are defined by this Act. A statutory corporation is a separate legal identity.

i. They are able to set their own policies without government control and intervention which gives them freedom and operational flexibility.

ii. They help in economic development as they are the combination of public (i.e. having power of government) and private enterprises (i.e. have the initiative of private enterprises).

Answered by Tharageswari S | 13 Sep, 2017, 09:14: AM