Explain the features of departmental undertakings. What is their suita

1.	Explain the features of departmental undertakings. What is their suitability?
Answer» The features of departmental undertakings are: 1. A departmental undertaking is the oldest form of state enterprise. 2. It is established by a ministry. 3. It does not have a separate legal entity. 4. It is not run on commercial lines. 5. It is answerable to the parliament for its performance. Suitability: The departmental form of organisation is not suitable for those undertakings which are required to be run on business lines. It is suitable only for those industries where strict control and secrecy are required, e.g., defence industries.

Explain the features of departmental undertakings. What is their suitability?

Answer»

The features of departmental undertakings are:

1. A departmental undertaking is the oldest form of state enterprise.

2. It is established by a ministry.

3. It does not have a separate legal entity.

4. It is not run on commercial lines.

5. It is answerable to the parliament for its performance.

Suitability: The departmental form of organisation is not suitable for those undertakings which are required to be run on business lines. It is suitable only for those industries where strict control and secrecy are required, e.g., defence industries.

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