1.

Explain any four features of statutory corporations.

Answer»
  • Formation: Statutory corporations are set up under an Act of Parliament or state legislature. The objectives, powers, duties of these corporations are described in the act. 
  • Governmental control: This type of organisation is wholly owned by the state. The government has the ultimate financial responsibility (i.e. liable for all profit or loss). 
  • Management: The day-to-day administration is looked after by Board of Directors nominated by the government. 
  • Financial autonomy: This type of enterprise is usually independently financed. It obtains funds by borrowings from the government or from the public and other sources. They need not to depend on budget allocation.


Discussion

No Comment Found

Related InterviewSolutions