The government has a major role to play in the formation of the public sector. However, the government acts through its people. These public enterprises are owned by the public and are accountable to the public through the Parliament. Departmental undertaking is the oldest and traditional form of organising public sector enterprises. A departmental undertaking is organised, financed and controlled [...]
It is usual to judge the performance of private sector units by the yardstick of net profit or loss since in their case, maximization of profit is the sole aim. This yardstick fails miserably in the case of public sector undertakings. Such units are frequently started in those sectors where profitability is low and gestation period long. For instance, investment [...]
The following points highlight the top four pricing policies of public sector enterprises. The policies are: 1. Pricing of Public Utility Services 2. Marginal Cost Pricing Rule 3. No-Profit No-Loss Policy 4. Profit-Price Policy. Pricing Policy # 1. Pricing of Public Utility Services: There are a number of principles which govern the pricing of public utility services. There are public [...]