Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

Which of the following refers to transfer of ownership, management and control of government sector enterprises to the private sector?

Options:

Globalisation

Privatisation

Devaluation 

Outsourcing

Correct Answer:

Privatisation

Explanation:

Privatisation implies shedding of the ownership or management of a government owned enterprise. Government companies are converted into private companies in two ways (i) by withdrawal of the government from ownership and management of public sector companies and or (ii) by outright sale of public sector companies.