Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.

The assertion states that privatization aimed to improve the financial health of public enterprises, which is true. Privatization involves transferring ownership and control of public enterprises to private entities. This is often done to improve their efficiency, financial performance, and overall management.

The reason is also true. When public enterprises are privatized, they are typically subjected to market competition and the profit motive, which can incentivize greater efficiency and effectiveness. Privatization also reduces the financial burden on the government by transferring the responsibility of funding and managing these enterprises to the private sector.

Therefore, both the assertion and the reason are true, and the reason correctly explains why privatization can improve the financial health of public enterprises.