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Redemption of Debentures

Partial or co...

Question

Partial or complete sale of a public sector enterprise is called _______.

A

liberalization

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B

privatization

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C

globalization

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D

none of them

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Solution

The correct option is B privatization
B. privatization.
Partial or complete sale of a public sector enterprise is a form of privatization. Partial privatization refers to a situation where the private sector owns more than 50% but less than 100% ownership in a public sector company by way of transfer of shares. In this case, the private sectors own the majority of shares and thus has substantial control over the functioning of the company.

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