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Question

Difficulty: MediumPublic Enterprises: Rationale, Features, Management, and Control

Match each public enterprise control mechanism or governance body with its corresponding function.

  • Parliamentary ControlDebating audited annual accounts and conducting legislative committee inquiries
  • Ministerial ControlIssuing general policy directives and appointing top administrative board members
  • Board of DirectorsFormulating internal operational policies and supervising executive management
  • Judicial ControlDetermining whether actions of the enterprise exceed statutory powers (ultra vires)

Answer

Parliamentary Control matches with debating audited annual accounts and conducting legislative committee inquiries; Ministerial Control matches with issuing general policy directives and appointing top administrative board members; Board of Directors matches with formulating internal operational policies and supervising executive management; Judicial Control matches with determining whether actions of the enterprise exceed statutory powers.
Each governance arm of a public enterprise operates under a specific authority structure: Parliament exercises legislative financial and operational scrutiny, the supervising Minister provides executive government policy guidance, the Board of Directors governs internal operations, and the Courts enforce legal compliance and statutory limits.

Step-by-Step Solution

1
Identify legislative oversight functions.
Parliamentary Control corresponds to debating audited financial reports and examining performance via legislative committees.
Parliament represents public ownership and holds the enterprise accountable through statutory reporting.
2
Identify executive government oversight functions.
Ministerial Control corresponds to issuing general policy directives and appointing board members.
The supervising ministry ensures the public enterprise aligns with government macroeconomic goals.
3
Identify internal management functions.
The Board of Directors corresponds to formulating internal operational policies and supervising executive officers.
The board acts as the corporate administrative body managing day-to-day strategic operations.
4
Identify legal oversight functions.
Judicial Control corresponds to reviewing actions against statutory limits (ultra vires).
The judiciary acts externally to enforce law and legal accountability.

Key Concept

Management and Control of Public Enterprises
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Topics

Public Enterprises: Rationale, Features, Management, and Control

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