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Salient Features of Public Enterprises
A careful analysis of the above definitions reveals the following characteristics of public enterprises


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1. State ownership: A public enterprise is wholly owned by the Central Government or Stat Government (s) or local authority or jointly owned by two or more of them. In case the enterprise is owned both by the Government and private sector, the Stat must have at least 51 percent share in ownership.

2. State control: The ultimate control of a public enterprise lies with the Government which appoints its Board of Directors and the Chief Executive.

3. Government financing: The whole or a major portion of the capital of a public enterprise is provided by the Government.

4. Service motive : The primary aim of a public enterprise is to render service to the society at large. It may have been to incur losses for this purpose. However, public enterprises are expected to generate surplus in course of time.

5. Public accountability: Public enterprises are financed out of public money. Therefore, they are accountable for their results to the elected representatives of he public, i.e, the Parliament and the State Legislature. That is why, the working of pubic enterprises is scrutinized by the Committees of the Parliament or the State Legislature.

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Operational Autonomy and Public Accountability
Desirability of Surplus
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Drawbacks of Holding company in the Public Sector
Merits of Holding company in the Public Sector
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