A public corporation means ______________.

 Options:

A. public company. B. government company. C. statutory corporation. D. department of union government

The Correct Answer Is:

• C. statutory corporation.

The correct answer is C. statutory corporation.

A public corporation, also known as a statutory corporation, is a distinct legal entity created by a specific statute or law. These entities are established by the government to fulfill certain public or quasi-public functions, and they have a unique legal status that differentiates them from other types of organizations. Let’s delve into why the answer is correct and why the other options are not:

Correct Answer – C. Statutory Corporation:

A public corporation, often referred to as a statutory corporation, is a legally autonomous entity created by a special act of the legislature or parliament. These entities are established with a specific purpose in mind, typically to perform functions that are in the public interest.

Statutory corporations have a separate legal identity, and they enjoy a degree of financial and administrative independence. They are governed by the provisions of the statute that created them, and their structure and operations are often well-defined by law.

Statutory corporations can be involved in various activities, such as running utilities (like water supply or electricity), managing transportation (like railways or airports), and even in areas like education or finance.

They are accountable to the government but operate with a degree of autonomy, making them distinct from other government entities. Their budgets and activities are often scrutinized and approved by the government, but they have a certain level of independence in day-to-day operations.

Option A – Public Company:

A public company is not synonymous with a public corporation. Public companies are privately owned companies that issue shares to the public through stock exchanges. They are governed by company laws and operate for profit.

Public companies are not government entities or statutory corporations; instead, they are subject to the regulations of the Companies Act and are owned by shareholders. They are often engaged in various businesses, from manufacturing and services to technology and retail, with the primary goal of generating profits for their shareholders.

Option B – Government Company:

A government company is an entity that is owned by the government directly. While it might be involved in activities that serve the public interest, it is not the same as a statutory corporation.

Government companies are typically created under the Companies Act and are entirely owned by the government, either at the central or state level. They are subject to the same corporate laws as any other company, and their primary goal may include profit generation.

Option D – Department of Union Government:

A department of the union government is a government office or ministry responsible for specific functions of the government, such as defense, finance, health, or education. These departments are part of the government’s administrative structure and are responsible for implementing government policies and programs.

They are not considered public corporations or statutory corporations. While they serve important roles in the government, they do not have the separate legal status and financial independence associated with statutory corporations.

In conclusion, a public corporation, as the correct answer suggests, is a statutory corporation. These entities are created by specific statutes to serve public or quasi-public functions with a degree of autonomy.

They have a separate legal identity and are accountable to the government but operate independently within the framework of the law. The other options, public company, government company, and department of union government, do not accurately define what a public corporation is, as they represent different types of entities with distinct legal structures and purposes.

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