Question

The government has partnered with private stakeholders to run an airline company. The government holds 51% of the shares, and the rest is owned by private investors. The company is registered under the Companies Act and is managed by a Board of Directors. What is the key advantage of this form of enterprise?

विकल्प

• Full government control

• Reduced accountability

• Flexibility in management and operations

• Rigid structure

Answer 1

Flexibility in management and operations

Explanation:

In this type of enterprise, where the government holds 51% of the stock and private investors hold the rest, the company has a flexible management and operational structure. The private sector’s involvement allows for more dynamic decision-making and commercial practices, while the government maintains majority control.