CBSE Class 11-commerce Answered

The public sector enterprises are a part of the government, having no separate entity. It functions under the overall control of one of the ministers of the Central or State Government and is known as departmental undertakings. For example: Railways and post office.

The merits of departmental undertakings over other forms of public enterprises are

1. It ensures effective control over their operations by the Parliament. Annual reports of these undertakings are laid on the table of both the houses of the Parliament.
2. It is established for some specific work of the ministry. The working of these undertakings is reviewed through government audit.