Public, Private and Global Enterprises · Class 11 · CBSE · Commerce Business Studies
State the primary distinction between a Departmental Undertaking and a Statutory Corporation regarding their formation and legal status.
Practice question from Public, Private and Global Enterprises (Class 11 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
medium · Subjective · Q-CAD2E5
State the primary distinction between a Departmental Undertaking and a Statutory Corporation regarding their formation and legal status.
Solution
Departmental undertakings lack independent legal status and are subject to direct budget and control of a ministry. Statutory corporations have their own corporate body status, enabling them to sue and be sued independently.
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