Ans. 2.

The chief characteristics of public enterprises are:

(i) Autonomous or Semi-Autonomous Organisation: Public enterprise is an autonomous or semi-autonomous organisation because some enterprises work under the direct control of the government and some organizations are established under statutes and companies act

 (ii) State Control: The public enterprises are financed, owned and managed by the government may be a central or state government.

(iii) Rendering Service: The primary objective of the establishment of public enterprises is to serve the public at large by supplying the essential goods at a reasonable price and creating employment opportunities.

(iv) Useful to Various Sectors: The state enterprises serve all sectors of the people of the company. They do not serve a particular section of the people in the community.

(v) Monopoly Enterprises: In some specific cases private sectors are not allowed and as such the public enterprises enjoy monopoly in operation. The state enterprises enjoy monopoly in Railways, atomic energy.

(vi) A Direct Channel for Use of Foreign Money: Sometimes the government receives foreign assistance from industrially advanced countries for the development of industries. These advances received are spent through public enterprises.