Question

Public sector undertakings can affect the government exchequer through

• A. tax payments only
• B. dividend payments only
• C. dividend, interest, and tax payments
• D. interest payments only

Hint:

Public sector undertakings contribute to the government's finances through various payments, including dividends, interest on loans, and taxes.

Answer 1

The Correct Option is C

Step 1: Understand the role of public sector undertakings.
Public sector undertakings (PSUs) are government-owned corporations or companies that operate in various sectors. These undertakings can contribute to the government exchequer in multiple ways.
Step 2: Analyze the options.
- Option (A) is incorrect because public sector undertakings do not just contribute through tax payments but also through dividends and interest payments.
- Option (B) is incorrect because PSUs also contribute through tax payments and not just dividends.
- Option (C) is correct because public sector undertakings contribute to the government exchequer through dividends, interest payments on loans, and tax payments.
- Option (D) is incorrect because interest payments are just one of the ways, not the only way PSUs contribute to the government.
Final Answer: \[ \boxed{\text{dividend, interest, and tax payments}} \]