Indian Economic Development: Liberalisation, Privatisation and Globalisation – An Appraisal · Class 12 · CBSE · Commerce Economics
Which statement best explains disinvestment as a part of the privatisation process in India?
Practice question from Indian Economic Development: Liberalisation, Privatisation and Globalisation – An Appraisal (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
medium · MCQ · Q-F6CE36
Which statement best explains disinvestment as a part of the privatisation process in India?
- A.The government sells some or all of its shares in a public sector enterpriseCorrect answer
- B.The government increases its ownership in every public sector enterprise
- C.Private firms are prohibited from entering previously reserved industries
- D.The government fixes the prices of all goods produced by private firms
Solution
Disinvestment means selling a part or the whole of the government’s equity in a public sector enterprise. It can increase private participation and is an important instrument of privatisation.
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