Question

Privatisation refers to _________.

• A. the change in the legal status of a firm from a public to a private company.
• B. the ownership of shares in private companies.
• C. the transfer of assets or different forms of economic activity from the public to the private sector.
• D. process of increasing profits of a private company

Answer 1

The correct option is C the transfer of assets or different forms of economic activity from the public to the private sector.

Privatisation refers to transfer of assets or different forms of economic activity from the public to the private sector. Reasons for privatisation include Inefficiency of Public Sectors mainly because of corruption, outdated technology, lack of accountability, domination of trade unions, political interference etc. All these drawbacks can be overcome by privatisation to a greater extent.