Indira Gandhi National Open

University
School of Management Study

A Synopsis Proposal for

Entitled "PUBLIC ENTERPRISES"

INDIRA GANDHI NATIONAL OPEN UNIVERSITY

By Under Guidance
of
Name: MD CHAND Prof. V. Pathak
Enroll: 091323122 (Examination
Controller)
Address: Laxmi Narayna L.N Mishra Management
Road Islampur Muzaffarpur College Muzaffarpur
Bihar-842001 (India)
Rational For the Study:The purpose of the study is to present an analytical review of
the ways in which public enterprise may offer itself as an instrument in implementing national policies
of income distribution. It does not contain a full-fledged discussion of the whole problem of income
distribution . It proceeds on assumption that the operation of public enterprise can play a part in the
totality of measures applied in that field. No attempt is made at an empirical review of the problem.
The focus is on examining the theoretical potentialities of the different channels of impact by public
enterprises on income distribution m the extent of their practicability , and the nature of limitation that
qualify the use of given channels of impact by public enterprises on income distribution, the extent of
their practicability , and the nature of limitation that qualify the use of a given channel.
The use of illustrative material drawn from the developing
countries as well as from the United Kingdom is only intended to add realism to the discussion at
certain points. In the course of the discussion comments will be made , wherever appropriate
contextually , on how a given public enterprises strategy compares with available alternatives of
public policy in achieving an intended result. A public enterprise, also called as public limited
company, which is wholly or partially owned by the public. The advantages of Public enterprise
are:
- Limited or no personal liability
- Capital inflow from public
- Funds from government and public sector are easily injected.

Disadvantages are:
- Voting for the top management is done by public.
- conflicts over voting rights and ownership issues.
- even if it incurrs a loss, it has to pay dividends to the share holders.Public enterprise is an
economic system in which the central government makes all the major economic decisions for the
country. Aka communism, centrally planned.

Advantages include:
-planning encourages high rates of economic growth
-planning helps reduce wastage of resources
-the distribution of income is more equal
-essential goods are produced before less essential goods
-planned economies do not suffer from unemployment and inflation related to the business cycle

Disadvantages include:
-planned economies are bureaucratic and inflexible
-there is little incentive for efficient management
-the system stifles individual effort
-freedom of choice is restricted
-the quality, quantity and variety of goods are limited