Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Privatisation of ownership through sale of equity share is called:

Options:

Disinvestment

Denationalisation

Contracting

None of the above

Correct Answer:

Disinvestment

Explanation:

Disinvestment means selling a stake in a company, subsidiary or other investments. Businesses and governments resort to divestment generally as a way to pare losses from a non-performing asset, exit a particular industry, or raise money.