Question -
Answer -
Government company form of organisation is preferred because of the following benefits it offers:
1. A government company can be formed easily as there is no requirement of passing a bill in Parliament. It is created by following the procedure as mentioned in Indian Companies Act, 1956.
2. There is maximum autonomy in the way all the decision making is done in a government company
3. There is more efficiency in managing the business as the government company is more accountable than other public enterprise forms and the annual report gets presented in both houses of parliament.
4. Provides a good competition to the private sector businesses and thereby ensuring that goods are available at reasonable prices.