The transfer of ownership of companies from the private sector to the public sector is called:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Nationalisation
Nationalisation is the transfer of ownership from the private sector to the public sector. Some private firms close to shutting down were nationalised to protect workers’ jobs.
Option (1) Disinvestment — Incorrect. Disinvestment is the sale of part of the capital of a company, such as a public sector firm.
Option (2) Privatisation — Incorrect. Privatisation moves ownership the other way, from the government to the private sector.
Option (3) Liberalisation — Incorrect. Liberalisation means removing restrictions on the economy. It does not change who owns a firm.
Option (4) Nationalisation — Correct. Private to public ownership.
NCERT (2026-27): Glossary: “Nationalisation – Transfer of ownership from private sector to public sector. This involves take over of companies owned by individuals or group of individuals by either state or central government. In some contexts, it also involves transfer of ownership from state government to central government.” Glossary: “Disinvestment – A deliberate sale of a part of the capital stock of a company to raise resources and change the equity and/or management structure of a company.” |