Explain merits of departmental undertaking.

Explanation

MERITS OR ADVANTAGES OF DEPARTMENTAL UNDERTAKING


1. Rules, regulations, processes and procedures are well established. Clear cut systems and policies ensure smooth functioning and effective management.


2. Financial records are subject to government audit. Therefore there is less risk of misuse of funds.


3. They are a source of revenue to the government. Earnings of the departmental undertaking go into the government treasury.


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