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A public sector enterprise may bee defined as a business undertaking which is owned, managed and controlled by the State,

on behalf of the public at large. They are divided in to:


Departmental undertakings Public corporations Government companies Holding companies

State ownership Service motive

Public accountability
Government control

Economic objectives

economic development balanced regional development generation of surplus provide employment

Social objectives

control monopoly Equitable distribution of wealth Provision of essential goods and services Takeover of sick units

Political objectives.
Public interest National defense socialism

Role of financial advisor Capital Budgeting decision Capital structure decision

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Statutory Audit Audit of government companies Audit of statutory corporations

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Efficiency cum propriety audit

Concept of memorandum understanding Disinvestment Autonomy Capital restructuring

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