Tamil Nadu Board of Secondary EducationHSC Commerce Class 11th

Advantages and Disadvantages of Departmental Undertaking

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  • Advantages
  1. Easy Formation
  2. Direct and Control of Parliament or State Legislature
  3. Secrecy Maintained
  4. Lesser Burden of Tax on Public
  5. Instrument of Social Change
  6. Lesser Risk of Misuse of Public Money
  7. Guided by Rules and Regulations of the Ministry
  • Disadvantages 
  1. Red-tapism
  2. Incidence of Additional Taxation
  3. Lack of Competition
  4. Casual Approach to Work
  5. Government Interference
  6. Lack of Professional Management and Fear of Criticism
  7. Financial Dependence
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