explain 5 merits and demerits of global enterprises

MERITS :

  1. It is more effective in achieving the objective laid down by government. as it is under the direct control of government.
  2. It is a source of government income as its revenue goes to government treasury.
  3. It is accountable to parliament for all its actions which ensures proper utilisation of funds.
  4. It is suitable for activities where secrecy and strict control is required like defence production.

DEMERITS :

  1. It suffers from interference from minister and top officials in their working.
  2. It lacks flexibility which is essential for smooth operation of business.
  3. These organisations are usually insensitive to consumer needs and do not provide goods and adequate service to them.
  4. Such organisations are managed by civil servants and government officials who may not have the necessary expertise and experience in management.

 

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