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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?
Options
Full government control
Reduced accountability
Flexibility in management and operations
Rigid structure
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Solution
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.
