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Question

Disinvestments means selling of a public investment to ___________.

A
private enterprises
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B
public enterprises
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C
capital market
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D
departmental enterprises
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Solution

The correct option is B private enterprises
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.

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