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Questions
Attempt the following.
Merits of Statutory Corporation.
Explain the merits of a statutory corporation.
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Solution
The merits of a statutory corporation are as follows:
- Internal Autonomy: Statutory corporations enjoy substantial autonomy in their daily operations, free from political interference by ministers and bureaucrats. This autonomy allows boldness, enterprise, and flexibility that government departments often lack.
- Quick Decisions: They can take prompt decisions and quickly adapt to changes in technology and market conditions because they are free from prohibitory government rules on public expenditure. This reduces red tape and bureaucratic delays.
- Motivation: Employees in statutory corporations typically have better service conditions than government servants, providing greater incentives for hard work and performance.
- Parliamentary Control: Their performance is subject to scrutiny and discussion by Parliament, which ensures accountability and the proper use of public funds. The service motive protects consumer interests.
- Efficient Management: Boards often include professionals and experts from various occupations, enabling business-like management. They can borrow money from the public to finance expansion without undue delay.
- Economies of Scale: Usually large and often monopolistic, statutory corporations benefit from economies of large-scale operations. They enjoy stability irrespective of government changes and can make long-term policy decisions.
RELATED QUESTIONS
A _________ is an autonomous corporate body created by the special Act of the Parliament or State legislature.
Give one word/phrase/term.
An autonomous corporate body created by the Special Act of the parliament or state legislature with defined powers, functions, and duties.
Give one word/phrase/term.
An organisation which 1s not subject to the budget, accounting and audit controls by the government.
Complete the sentence.
A ___________ has defined powers, functions and duties.
Answer in one sentence.
What is Statutory Corporation?
Correct the underlined word and rewrite the following sentence.
Statutory Corporation is a natural person created by special Acts.
Study the following case/situation and express your opinion.
A central government passes a statute in the parliament and forms a business organisation which is having autonomy in administration and this organisation is answerable to the legislature.
- Which type of organisation is this?
- Give any three Features of this organisation.
- Give anyone an example of this type of organisation.
Distinguish Between Government Company and Statutory Corporation.
Justify the following statement.
There is no political interference in statutory corporations.
Justify the following statement.
There is professional management in statutory corporation.
Attempt the following.
Demerits of Statutory Corporation.
Answer the following in detail.
Explain Statutory Corporation and its features.
Match the pairs.
| Group ‘A’ | Group ‘B’ | ||
| A) | BHEL | 1) | Special Legislature |
| B) | Statutory Corporation | 2) | 49% paid up capital by govt. |
| C) | Departmental Organisation | 3) | Service Motive |
| D) | Private Sector | 4) | Railway |
| E) | Public Sector | 5) | Profit Motive |
| 6) | 51% paid up capital by govt. | ||
What is one main role of the Reserve Bank of India as a statutory corporation?
Statutory corporations are accountable to which entity?
Why can statutory corporations easily raise capital for their operations?
Which feature directly relates to employees following corporation rules rather than government rules?
