Question

Distinguish Between.

Departmental Organisation and Multinational Corporation.

Answer 1

Points	Departmental Organisation	Multinational Corporation
1. Meaning	The organisation which is owned, managed, controlled, financed, and operated by the government is known as Departmental Organisation.	Multinational Corporation is a company which is incorporated in one country and has business units in several countries
2. Capital	The capital of the departmental organisation comes from the annual budget appropriations of the government.	The capital is contributed by the shareholders or financial institutions in several countries.
3. Management	It is managed by government officials of the concerned ministry.	Multinational corporation is managed by a parent company. It manages affairs of the subsidiary from the respective home country.
4. control	It is controlled by the concerned ministry.	Multinational corporation are controlled by respective parent companies and mostly home strategic.
5. Legal status	There is no separate legal status distinct from the government.	It has separate legal status
6. Borrowing power	Departmental undertaking cannot borrow from the public. It has to depend on the budget allocated by the government.	Multinational corporations use resources of different countries.
7. Ownership	Departmental undertaking is fully owned by the Government.	Ownership of MNC is in the hands of shareholders of the company.
8. Privileges and Concessions	It receives the highest government concessions and privileges.	MNC does not have any concessions. They have to pay duties and taxes.