Question : Privatization refers to the transfer of ownership and control of:
Option 1: Government-owned enterprises to the private sector
Option 2: Private enterprises to the government
Option 3: Small-scale enterprises to large-scale enterprises
Option 4: International enterprises to domestic enterprises
Correct Answer: Government-owned enterprises to the private sector
Solution : The correct answer is (a) Government-owned enterprises to the private sector
Privatization refers to the process of transferring ownership and control of government-owned enterprises or assets to the private sector. It involves the sale or lease of public enterprises, including companies, industries, or infrastructure, to private individuals, corporations, or investors.
The objective of privatization is to reduce the government's involvement in the economy, promote efficiency and competition, attract private investments, and improve the performance of the previously state-owned enterprises. Privatization allows for private ownership, management, and decision-making in the transferred entities, with the aim of enhancing productivity, profitability, and overall economic growth.
