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Business Studies

Economic Environment

A possible ob...

Question

A possible obstacle to growth of privatisation is

A

Profit earned by public enterprises

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B

Sale of least profitable enterprises

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C

Licensing

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D

None of these

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Solution

The correct option is B
Sale of least profitable enterprises

Sale of least profitable enterprises is a possible obstacle to growth of privatisation.

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Similar questions

Q. Give two reasons in favour of privatisation of public sector enterprises.

Q. The chief characteristic(s) of public enterprises is/are __.

(1)

Autonomous or semi-autonomous organization

(2)

Financed, owned & managed by the government

(3)

Primary objective of the establishment of public enterprises is to serve the public at lot of profit.

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Q. Identify the following as revenue receipts and capital receipts. Give reasons.
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(ii) License and court fees received by the Government in the year 2014-15.
(iii) Loan taken from USA for the infrastructural developments.
(iv) Sale of shares held by Government in a PSU.
(v) Financial help from Microsoft for the victims of flood affected areas.
(vi) Amount borrowed from Japan for construction of Metro.
(vii) Dividend received by Government from a company.
(viii) Funds raised from public in the form of National Saving Certificates.
(ix) Sale of 40% shares of a public sector undertaking to a private enterprise.
(x) Profits of LIC, a public enterprise.

Q. Identify the correct statement from the following:
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(ii) Privatisation of public-sector enterprises through the sale of a portion of their equity to the public. This is known as disinvestment.
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(iv) Globalisation resulted in greater access to the domestic market.

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