Answer :

The government company form of organisation preferred to other types in the public sector are :

a. Government company can easily be established as compared to other types in the public sector. The guidelines mentioned in the Companies Act need to be followed. There is no need to pass a separate bill in the parliament.


b. The government company is independent in terms of financial and administration terms. It has a Board of Directors which are extremely professional and work on the principle of Business Ethics.


c. The annual report of every government company is presented before both the houses of the Parliament. This is the efficiency and accountability of the company.


d. It creates healthy competition for the private sector to provide goods and services at a reasonable price and excellent quality.


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