Question : Statement 1: Privatization refers to the transfer of government-owned enterprises to the private sector.
Statement 2: Disinvestment refers to the acquisition of private enterprises by the government.
Option 1: Both statements are true.
Option 2: Both statements are false.
Option 3: Statement 1 is true, and statement 2 is false.
Option 4: Statement 1 is false, and statement 2 is true.
Correct Answer: Both statements are true.
Solution : The correct answer is (a) Both statements are true.
Statement 1 is true: Privatization refers to the transfer of government-owned enterprises to the private sector. It involves selling a government's stake or assets in a company to private individuals or entities.
Statement 2 is true: Disinvestment refers to the sale or reduction of government's stake in a company. It can involve selling shares of a publicly listed company to private investors or reducing the government's ownership in a company. It does not necessarily imply the acquisition of private enterprises by the government.
Therefore, both statements are true as they correctly define privatization and disinvestment.
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