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Question
Assertion (A): Government companies are highly flexible in their operations compared to other public enterprises.
Reasoning (R): They are governed by the Companies Act and can make decisions independently without bureaucratic interference.
Options
Both A and R are true, and R is the correct explanation of A.
Both A and R are true, but R is not the correct explanation of A.
A is true, but R is false.
A is false, but R is true.
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Solution
Both A and R are true, and R is the correct explanation of A.
Explanation:
Government companies are more flexible in their operations than other public organisations because they are governed by the companies Act, which allows them to make independent decisions and function more like private sector businesses, with less governmental intrusion. This flexibility is the primary reason for their operational independence.
