Justify the following statements.
1) Departmental Organisations are run for providing public services.
1. Departmental Organisations are the oldest forms of public enterprises.
2. Indian railways, post office, defence, All India Radio are the Departmental Organisations.
3. Indian Railways give services to public.
4. The main Objective of Departmental Organisations is to provide services to public.
5. The private sector aims at Profit maximization while public sector aims to provide reliable services to customers.
6. Thus, Departmental Organisations are run for providing public services.
2) There is direct control of government on departmental organisation.
1. Departmental organisations are run by the Government.
2. Departmental organisations are financed through the annual budget of Government.
3. Revenues of the departmental organisations are directly paid to the Government treasury.
4. The departmental organisation has no separate existence from the Government.
5. The staff of enterprises is treated equally with other civil servants.
6. Thus, there is direct control of the Government on the Departmental organisation
3) There is no political interference in statutory corporation.
1. A statutory corporation is an autonomous corporate body.
2. Statutory Corporation is an artificial person created by law and it has an independent legal entity.
3. Employees are not government servants.
4. A statutory corporation enjoys financial autonomy or independence.
5. A statutory corporation comes into existence by following a particular act, therefore, there is no political interference information.
6. Thus, all statutory corporations are free from political interference.
4) There is professional management in statutory corporation.
1. A statutory corporation is able to manage its affairs with independence and flexibility.
2. Management of statutory corporation is done without any government interference.
3. The statutory corporation is relatively free from red-tapism.
4. There is less file work and less formality to be completed before taking decisions.
5. The Board of directors of the statutory corporation consists of business experts and the representatives of various groups such as labour, consumers, etc. who are nominated by the government.
6. Thus, there is professional management in a statutory corporation.
6) MNC has worldwide existence.
1. Multinational Corporation helps to end local monopolies.
2. Multinational corporations lead to competition in the host countries.
3. Local monopolies of host countries either start improving their products or reduces their prices.
4. Multinational corporations put an end to exploitative practices of local monopolists.
5. As a matter of fact, MNCs compel domestic companies to improve their efficiency and quality.
6. Thus, MN C helps to end local monopolies.
7) MNC has mighty economic powers.
1. Multinational Corporation is operating on a global basis.
2. Multinational corporations have marketing operations in several countries operating through a network and branches.
3. They have production facilities in several countries.
4. Advanced Technology and international business operations are done by MNC.
5. It brings in much needed foreign capital for rapid development.
6. Multinational corporations integrate economies of various nations with the world economy.
7. Thus, MNC has worldwide existence.