Question

Statement I: Departmental undertakings are financed through budgetary allocations from the government.

Statement II: Departmental undertakings have the flexibility to make autonomous decisions.

Options

• Both statements are correct.

• Both statements are incorrect.

• Statement I is correct, but Statement II is incorrect.

• Statement II is correct, but Statement I is incorrect.

Answer 1

Statement I is correct, but Statement II is incorrect.

Explanation:

Statement I is correct because Departmental undertakings are funded through budgetary allocations provided by the government.

Statement II is incorrect because Departmental efforts are not very adaptable in terms of autonomous decision-making. They are directly managed by the government and operate under its supervision, making them less adaptable than other types of public sector firms.