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Question

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

Which form of control is directly exercised over a public corporation when the legislature debates its audited annual financial statements and examines its operational reports?

  1. Parliamentary controlAnswer
  2. B
    Ministerial control
  3. C
    Judicial control
  4. D
    Public or consumer control

Answer

Parliamentary control
Public corporations are statutory entities created by an Act of Parliament. Consequently, Parliament retains ultimate oversight authority, requiring these corporations to submit annual reports and audited accounts to be presented, debated, and evaluated by legislators.

Step-by-Step Solution

1
Identify the controlling body and mechanism described in the stem.
The body mentioned is the legislature (parliament), and the mechanism is reviewing annual accounts and operational reports.
Public corporations are established by Acts of Parliament, making them accountable to the legislative assembly.
2
Distinguish parliamentary control from executive and legal control mechanisms.
Legislative debate over annual financial statements constitutes parliamentary control.
Ministers handle administrative supervision, courts handle legal/ultra vires issues, and parliament handles ultimate legislative scrutiny.

Key Concept

Parliamentary control of public enterprises
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Topics

Public Enterprises: Rationale, Features, Management, and Control

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