Which of the following statements are true?
Government companies are converted into private companies in two ways:
(a) by withdrawal of the government from ownership and management of public sector companies
(b) by outright sale of public sector companies.
Answer & explanation
Correct answer: option 1
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.