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Question : Statement 1: Privatization refers to the transfer of government-owned enterprises to the private sector.

Statement 2: Disinvestment refers to the acquisition of private enterprises by the government.

 

Option 1: Both statements are true.

Option 2: Both statements are false.

Option 3: Statement 1 is true, and statement 2 is false.

Option 4: Statement 1 is false, and statement 2 is true.


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 7th Jan, 2024

Correct Answer: Both statements are true.


Solution : The correct answer is (a) Both statements are true.

Statement 1 is true: Privatization refers to the transfer of government-owned enterprises to the private sector. It involves selling a government's stake or assets in a company to private individuals or entities.

Statement 2 is true: Disinvestment refers to the sale or reduction of government's stake in a company. It can involve selling shares of a publicly listed company to private investors or reducing the government's ownership in a company. It does not necessarily imply the acquisition of private enterprises by the government.

Therefore, both statements are true as they correctly define privatization and disinvestment.

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