Govt Company is a Suitable form of organisation in public sector where:
(i)Govt, wants to promote and develop certain industrial and commercial enterprises in national interest.
(ii)Govt, wants to control a company in the private sector without nationalisation.
(iii)Govt. wants to go for a collaboration with domestic and foreign enterprises of private sector.
(iv)The business projects require Govt, planning and funds.
(b) Statutory Corporations are found most suitable form of public enterprise where:
(i)Public utility servises are to be provided at reasonable rates.
(ii)Govt, wants to develop the projects for economic development.
(iii)Where Govt, funding is required with private sectors managerial efficiency to run the enterprise on competitive lines.
(iv)The Govt, wants to promote those infrastructure areas where private sector is unwilling to invest.
(c) Departmental Undertaking are most suitable
forms of organisation in public sector where:
(i)The Govt, wants full control over the operations of enterprise.
(ii)National security is the major issue/concem.
(iii)The generation of revenue for the treasury is required.
(iv)The project are to be carried on strictly according to policies and direction of the govt.