What is the difference between public sector enterprises and government company?

Question

Answer

The difference between public nd government company :

*Public sector enterprises can be formed in a short time just by government decision.

*The public sector enterprises work with the main motive of providing services to public.

*Public sector enterprises r managed nd controlled by board of directors who generally r representative of government.

Now goverment company :

* Government company means any company in which at least 51 percent of the paid-up share capital is held by the central or state government or partly.

* The government companies r governed nd ruled by the provision of Companies Act.

* It is also separate legal entity.

Answer

Gvt school is best but not students and public school is best  but students also best

Answer

Public Sector Enterprises

Public sector enterprises refer to organizations that are owned and operated by the government. These enterprises play a significant role in the economy by providing goods and services to the public. They are established with the objective of fulfilling the social and economic goals of the government, promoting public welfare, and generating employment opportunities.

Characteristics of Public Sector Enterprises:
- Ownership: Public sector enterprises are owned by the government, either at the central or state level.
- Control: The government exercises control over these enterprises through various means such as appointment of directors, policy guidelines, and financial regulations.
- Objectives: These enterprises are primarily established to achieve social welfare and economic development goals, rather than maximizing profits.
- Funding: Public sector enterprises are funded through government investments, loans, and grants.
- Accountability: They are accountable to the government and are required to follow certain regulations and reporting mechanisms.
- Employment: Public sector enterprises often provide significant employment opportunities and play a role in reducing unemployment rates.
- Public Service: They are responsible for providing essential goods and services to the public, such as electricity, water, transportation, healthcare, and education.

Government Company

A government company is a specific type of public sector enterprise that is formed under the Companies Act, 2013. These companies are registered as separate legal entities and operate in various sectors such as manufacturing, infrastructure, finance, and services. The ownership of government companies is held by the government, which can be at the central or state level.

Characteristics of Government Companies:
- Legal Structure: Government companies are registered as separate legal entities under the Companies Act, 2013, and operate as per the regulations and provisions of the act.
- Shareholding: The government holds the majority of shares in these companies, allowing it to exercise control over their operations and decision-making processes.
- Board of Directors: Government companies have a board of directors appointed by the government, which oversees the management and strategic direction of the company.
- Profit Orientation: Unlike other public sector enterprises, government companies have a profit-oriented approach and are expected to generate profits and dividends for the government.
- Autonomy: Although government companies are owned by the government, they enjoy a certain degree of autonomy in their operations, allowing them to function efficiently.
- Accountability: These companies are accountable to the government and are required to provide regular reports, financial statements, and performance updates.

Differences between Public Sector Enterprises and Government Companies:

Ownership: Public sector enterprises can be owned by the government, public authorities, or a combination of both, while government companies are solely owned by the government.

Legal Structure: Public sector enterprises can be formed under various legal frameworks, including acts of parliament, while government companies are registered as separate legal entities under the Companies Act, 2013.

Profit Orientation: Public sector enterprises are primarily focused on achieving social welfare goals, whereas government companies have a profit-oriented approach and are expected to generate profits for the government.

Decision-making: Public sector enterprises are subject to government control and policy guidelines, while government companies have a certain degree of autonomy in their decision-making processes.

Accountability: Both public sector enterprises and government companies are accountable to the government, but government companies follow additional regulations and reporting mechanisms as per the Companies Act, 2013.

Funding: Both public sector enterprises and government companies are funded through government investments, loans, and grants.

In conclusion, public sector

Similar Commerce Doubts

Chapter 3 business public , private and global enterprises ? The public sector company is incurring heavy losses and government purposes for closing which term is related to the statement a. Disinvestment b. Privatisation c. Dimoralisation d. Socialisation?

Steel Authority Of India Limited is a public enterprise. Identify this form of public enterprises

The Public sector enterprises have played a vital role in the economic development of India. However, government of India vigorously pursues the policy of disinvestment of such units. What is the rationale of disinvestment at this time?

What is the difference between private and public joint stock company?

Top Courses for CommerceView all

Chapter Notes for Commerce

Economics Class 12

Economics Class 11

NCERT Books & Solutions for Commerce

Economics for CBSE Class 12 Board Examinations

Top Courses for Commerce

Top Courses for Commerce

Suggested Free Tests

Related Content

Commerce Courses

Other Courses

How To Prepare?

Related Exams

Company