# Short Answer Type Questions: Explain merits of departmental undertaking.

##### SOLUTION
Following are the merits of departmental undertaking:
• Ease of formation: It is formed by the administrative decision taken by the government. It does not include any legal acts or formalities for formation.
• Accountability: The department is fully accountable to the parliament
• Control: The government has direct control over it which helps it to achieve government objectives effectively.
• Social welfare: The objective of departmental undertaking is social welfare. Hence, it focuses on the economic growth and development by effective control over production and distribution of goods and services.
• Less misuse of funds: Since the government oversees the expenditure incurred by the department, there is less misuse of funds.
• Secrecy: Secrecy of policies are maintained as there is no one to question the policies or to reveal them. Hence it is best suited for organisations related to National security.

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Subjective Medium Published on 18th 08, 2020
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 146

#### Realted Questions

Q1 Single Correct Medium
_________ refers to the company in which $51\%$ or more of the paid up capital is held by the government.
• A. Departmental undertaking
• B. Statutory corporation
• C. Government company
• D. All of the above

1 Verified Answer | Published on 18th 08, 2020

Q2 TRUE/FALSE Medium
Global enterprises have a problem in market penetration.
• A. True
• B. False

1 Verified Answer | Published on 18th 08, 2020

Q3 Single Correct Medium
Bharat Heavy Electrical Limited is _________?
• A. Government company
• B. Private sector company
• C. Non-profit making company
• D. All of the above

1 Verified Answer | Published on 18th 08, 2020

Q4 Subjective Medium
Give two examples of government company.

1 Verified Answer | Published on 18th 08, 2020

Q5 Single Correct Medium
_____ makes it possible to execute large projects requiring huge capital outlays and manpower.
• A. Wholly Owned Subsidiaries
• B. Franchising
• C. Joint venture
• D. Contract manufacturing