Topics:
CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books
Privatisation Two Methods
Government companies are converted into private companies by:
- Increasing government investment and hiring more staff
- Withdrawal of government from ownership/management or outright sale — Correct Answer
- Merging with foreign companies only
- Giving subsidies to private companies
Explanation:
Correct Answer Explanation
Two ways: (i) Withdrawal of government from ownership and management, (ii) Outright sale of public sector companies.
Key Points:
- Disinvestment = selling part of equity of PSEs to public.
- Purpose: Improve financial discipline and facilitate modernisation.
📚 About this Topic — CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL
This multiple choice question is from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL to strengthen your preparation.
