Subject: Business Studies
The autonomous organizations established, owned, managed and controlled by the government for the purpose of providing goods and services to the people at reasonable prices. The aims of public enterprises are to provide public utilities like drinking water, communication, fuel, electricity, transport facilities etc. at a reasonable price. Nepal Telecom Co. Ltd., Nepal Airlines Corporative, Nepal Oil Corporative, Nepal Electricity Authority, Dairy Development Corporation, Salt Trading Corporation, National Trading Corporation are the some examples of public enterprises operating in Nepal.
The autonomous organizations established, owned, managed and controlled by the government for the purpose of providing goods and services to the people at reasonable prices. The aim of public enterprises is to provide public utilities like drinking water, communication, fuel, electricity, transport facilities etc. at a reasonable price.
Nepal Telecom Co. Ltd, Nepal Airlines Corporative, Nepal Oil Corporative, Nepal Electricity Authority, Dairy Development Corporation, Salt Trading Corporation, National Trading Corporation are some examples of public enterprises operating in Nepal.
A business organization which is wholly or partially owned by the state is called public enterprises. These are the business organization which is wholly invested by government managed by government or the majority of investment is made by a government. Public enterprises are classified into the following three types:
Those business enterprises which are totally invested and controlled by the specific ministry of government are called departmental undertaking. The ministry of government will be established to promote departmental undertaking. It is the oldest form of public enterprises. The example of departmental undertaking in Nepal is a postal department.
The features of department undertaking are explained as below:
Business enterprises which are established after passing a special act or law from parliaments are called the public corporation. These enterprises are established to solve the specific need of the country. A public corporation is also called a statutory company. This company invests a large amount of capital to provide product or service for the general public.
The features of a public corporation are as follows:
Public enterprises established under the company act of the country are called government companies. The government owns at least 51% share out of its total share of the company. This type of companies is more popular as it easy to organize and is considered to be more efficient.
The features of government companies are as follows:
References:
Khanal, Soma Raj, Surendra Thapa Aslami and Sitaram Dhakal. Business Studies. Kathmandu: Taleju Prakashan, 2067.
Pant, Prem R., et al. Business Studies. Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd., 2010.
Define public enterprise.
Public enterprises is a business organization who is wholly or partly owned by the state and controlled through public authority. The aims of public enterprises are to provide public utilities like drinking water, communication, fuel, electricity, transport facilities etc. at a reasonable price. The public enterprises are established, owned, managed and controlled by government for the purpose of providing goods and services to the people at reasonable prices.
According to A.H. Hansen, a public enterprise denotes “state ownership and operation of industrial, agricultural, financial and commercial undertakings”
According to N.N. Malaya, “Public enterprises are autonomous or semi-autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial undertakings”
Public enterprises invest a large amount of money in establishing a large scale of industries. Public enterprises are main instrument or tool to support a government in developmental planning. They work according to government planning. Public enterprise invests a large sum of money in establishing the big size of the industry we establish a larger number of people will get employment opportunities. Public enterprises are mainly concerned to provide service even though they are profit organization.
Nepal Telecom Co.Ltd. Nepal Airlines corporative, Nepal oil corporative, Nepal Electricity Authority, Dairy Development Corporation, Salt Trading corporation, National Trading corporation are some examples of public enterprises operating in Nepal.
State the characteristics of public enterprises.
The main characteristics of public enterprises:
Write the importance of public enterprises.
The public enterprises have the following importances:
Explain different types of public enterprises?
ts poThere are various types of public enterprises On the basis of organizational affiliation and management, public enterprises can be classified into following types:
Departmental Undertaking
Those business enterprises which are totally invested and controlled by the specific ministry of government are called departmental undertaking. Under the departmental undertaking, all business activities are carried on under the overall control of the concerned ministry. The features of the departmental undertaking:
Public corporation
Public corporation is the most widely used form of organizations for operating a public enterprise. Its powers, duties,objectives, privileges, scope of operations and management are all defined by the act. The main purpose of the public corporation is the maximization of social welfare.This company invests a large amount of capital to provide product or service for the general public.
The features of public corporation are as follows:
Government Companies
Public enterprises established under the company law of the country are called government companies. This type of company is a popular enterprise and enjoys all the privileges of a joint stock company. The liability of the government is limited. The features of government companies are:
Board of Directors
Board of directors manages the government company. All activities of the company are operated, managed, and controlled by the board of directors.
Define concept of public enterprise and state the characteristics of public enterprises.
Public enterprises is a business organization who is wholly or partly owned by the state and controlled through public authority. The aims of public enterprises are to provide public utilities like drinking water, communication, fuel, electricity, transport facilities etc. at a reasonable price. The public enterprises are established, owned, managed and controlled by government for the purpose of providing goods and services to the people at reasonable prices.
According to A.H. Hansen, a public enterprise denotes “state ownership and operation of industrial, agricultural, financial and commercial undertakings”
According to N.N. Malaya, “Public enterprises are autonomous or semi-autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial undertakings”
Public enterprises invest a large amount of money in establishing a large scale of industries. Public enterprises are main instrument or tool to support a government in developmental planning. They work according to government planning. Public enterprise invests a large sum of money in establishing the big size of the industry we establish a larger number of people will get employment opportunities. Public enterprises are mainly concerned to provide service even though they are profit organization.
The main characteristics of public enterprises are:
Explain the characteristics of public enterprises.
The main characteristics of public enterprises:
Government ownership:
It is owned by the government.It is either wholly or partially owned by the state investing, at least, fifty-one percent of its share capital.
Government management and control:
A public enterprise is managed and controlled by the government.The government appoints the board of directors and the chief executive for the management of day-day affairs of the enterprises.
Service motive:
A public enterprise is established for providing quality goods and services to the people rather than earning profit. Although, it may make some profits, its primary objective is to always to provide service to the society.
Financial autonomy:
It has financial autonomy in the operation of its business. It can generate revenues by producing and selling goods and services and make expenditures thereof on their own without government interference.
Autonomous body:
Public enterprise is an autonomous body. The board of directors is all in all in the enterprises and is independent of government regulations. It has its own rules bylaws to govern its operations.
Separate legal entity;
It is established under the law with a separate legal entity, except the department organizations. It has a corporate status with a corporate status with a common seal. It can be sue and can be sued.
Public accountability:
Public enterprises are financed from public money, accountable to the general public. The board of directors and executives of the enterprises are accountable for their performance to the parliament.
Perpetual Succession:
It has a permanent life .Being a separate legal entity, its life is not affected by the changes in the government its own management.
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