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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


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 12th Jan, 2024

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.

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