Government Companies and Departmental Undertakings

A public sector enterprise that is directly controlled by a government department, responsible for specific functions.

They are a part of a government department, directly controlled by the government, do not have a separate legal entity, financed by the government treasury, and accountable to the ministry.

An example of a departmental undertaking that provides transportation services.

An example of a departmental undertaking that manages mail delivery.

An example of a departmental undertaking responsible for national defense.

The benefit of establishing a departmental undertaking quickly and easily due to no separate legal entity requirement.

The advantage of centralized control over departmental undertakings, ensuring consistent direction.

The disadvantage of limited autonomy for departmental undertakings due to direct government control.

They are run by the government. They are responsible for providing services to the public. They are accountable to the public. They have a centralized control system.

They aim to use their funds in the most efficient way possible. They try to minimize waste and use their resources effectively. The revenue generated goes directly to the government's treasury.

They are not very flexible and are unable to make changes quickly. They are often slow to respond to changes and have a lot of red tape. The employees may lack motivation due to the lack of autonomy and flexibility.

They are created by a special act of parliament. They are autonomous bodies that have their own board of directors.

They have more flexibility than departmental undertakings. They have more autonomy and can make their own decisions. They have financial independence and can manage their own finances.

They have more flexibility than departmental undertakings. They can make their own decisions and manage their own finances. They have financial independence.

Departmental undertakings are directly controlled by the government, while state corporations are established by parliament and have more autonomy.

An organization established by a special act of parliament with a separate legal entity and a board of directors.

A body corporate created by a special act of parliament, which has its own board of directors and financial independence.

The government has limited control over their operations.

A body set up by a special act of parliament that has its own legal identity.

An organization managed by a board of directors with a defined structure.

They offer the advantage of quick and flexible decisions.

Strategic operations are not part of a ministry and do not have a direct link to government departments.

A public sector enterprise established as an extension of a ministry, without a separate legal entity.

A company established under the Companies Act 2013, with a board of directors appointed by the government, and some operational autonomy.

Government Companies have more flexibility to manage their operations and hire staff based on their own rules.

Government Companies can face political interference, limiting their decision-making.

A company with operations in multiple countries, often with branches or subsidiaries in each.

MNCs have their headquarters in one country but operate in many others, often with a significant presence in each.

It refers to the freedom to make decisions and act independently. Government companies have a high level of this, meaning they can make decisions quickly and easily.

These companies are owned by the government but enjoy a significant degree of autonomy, making decisions quickly and driven by profit generation.

The ability to make decisions and act quickly, without much bureaucracy or red tape. Strategic operations are known for their high level of this.

This term refers to the extent to which a business is controlled by the government. Government companies have minimal government control.

The ability to respond rapidly to changing situations. Strategic operations are known for their capability to make fast decisions.

The main purpose of strategic operations is to serve the public. They prioritize public benefit over profit maximization.

A business entity with operations in multiple countries, characterized by a large capital base, advanced technology, and foreign collaborations.

An agreement between two or more parties to collaborate on a project or venture, sharing resources, expertise, and risks.

A company where the government has a majority ownership (at least 51%).

Companies often collaborate with other companies in foreign countries, allowing for technology and expertise transfer.

MNCs typically operate, invest, and manage their businesses globally, with branches or subsidiaries in various countries.

MNCs rely on significant financial resources to fund their global ventures and investments.

MNCs utilize advanced technology to compete effectively in the global market.

MNCs are managed by a private board of directors, making decisions independently with autonomy, but subject to local regulations.