BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS ENVIRONMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Privatization means
A
planned disinvestment.
B
planned investment.
C
reduced multinational companies’ control
D
planned saving.
Explanation: 

Detailed explanation-1: -Privatization is the process of transfer of ownership of a public sector undertaking to the private sector. Disinvestment is a process in which an organization or government sells or liquidates the assets which it owns.

Detailed explanation-2: -Disinvestment is when governments or organizations sell or liquidate assets or subsidiaries. Disinvestments can take the form of divestment or a reduction of capital expenditures (CapEx). Disinvestment is carried out for a variety of reasons, such as strategic, political, or environmental.

Detailed explanation-3: -Privatization is the process of transferring an enterprise or industry from the public sector to the private sector. The public sector is the part of the economic system that is run by government agencies.

Detailed explanation-4: -Major disinvestment: The government sells off the majority of its stake and retains minor holdings in the company. Compete privatisation: In this the government hands over complete control of its holdings to a private player.

Detailed explanation-5: -Privatization:-Privatization refers to the process of transfer or sale of public ownership to private in part or full. It is a process of reducing the government’s role in the economy. It includes ownership, organisational and operational measures. Disinvestment is one of the operational measures of privatization.

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