Question

Write the merits of government companies.

Answer 1

The merits of government companies:

1. Ease of formation: A separate ad of the parliament is not required for setting up a government company, as it is established under the Indian Companies Act, 1956.

2. Independent status: A government company has its own legal entity separate from the government.

3. Autonomy: A government company has full autonomy in doing its business operations and in all business decisions. It can take any decisions which is favourable for the company for its effective growth.

4. Good market control: These companies are able to control the market and reduce unhealthy business practices by providing goods and services at reasonable prices.