Question

Disinvestment means _______.

• A. disposal of equity of public sector units in the market.
• B. disposal of equity of public sector units to large industrial houses.
• C. disposal of equity of loss making units to foreign banks.
• D. disposal of equity of Government units to World Bank

Answer 1

The correct option is A disposal of equity of public sector units in the market.

Privatization includes ownership, organizational and operational measures. It refers to the process of transferring or sale of the public ownership to private ownership in part or full. It is a process of reducing government's role in the economy. Disinvestment means disposal of equity of public sector units in the market. Disinvestment is one of the operational measure of privatization.