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Question : Disinvestment refers to the sale of government equity or shares in:

 

Option 1: Public sector enterprises

Option 2: Private sector enterprises

Option 3: Foreign sector enterprises

Option 4: Cooperative sector enterprises


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 11th Jan, 2024

Correct Answer: Public sector enterprises


Solution : The correct answer is (a) Public sector enterprises

Disinvestment refers to the process of selling government equity or shares in public sector enterprises. It involves the reduction of the government's ownership stake in these enterprises by selling off a portion of its shares to private investors, institutions, or the general public.

The purpose of disinvestment in public sector enterprises can vary, but it is often done to achieve certain objectives such as reducing the government's fiscal burden, promoting efficiency and competitiveness in the enterprises, attracting private capital and expertise, and encouraging wider public ownership and participation in the economy.

By disinvesting from public sector enterprises, the government aims to bring in private sector discipline, enhance corporate governance, promote competition, and unlock the value of these enterprises. It can also help in raising funds for the government, which can be used for various developmental or welfare purposes.

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