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Standard XII
Accountancy
Redemption of Debentures
Privatization...
Question

Privatization in India generally is in the form of disinvestments of _____________.

A
debts
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B
equity
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C
debenture
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D
non-current liabilities
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Solution

The correct option is D equity
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.Privatization in India generally is in the form of disinvestment of equity.

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Q. Select the correct matching
(A) Liberalization(1) Refers to partial or full transfer of ownership and control of PSUs to the private sector.
(B) Privatization(2) Refers to relaxation of government's restriction in the scope of economic and social polices.
(C) Disinvestment(3) Refers to a method of privatization, whereby part of shareholdings of a PSU is sold to the private sector.

Q. The Government of India is going to disinvest its ownership in one of the government companies. Even after disinvestment, the government will have a minority ownership in that company, but the company itself will be managed by a private party.

Which of the following ways of privatisation is adopted by the Government of India in the above example?
Q. Q. Consider the following statements with respect to Disinvestment operations:Which of the statements given above is/are correct?

  1. 1 only

  2. 1 and 3 only

  3. 2 only

  4. 2 and 3 only
Q. A company, A Private Limited, produces cashmere. A Private Limited is registered in India under Indian laws, but it also sells and produces cashmere outside India.

What type of company is A Private Limited ?
Q. State whether the following statements are True or False.
(a) There is no chartered company in India.
(b) LIC is a statutory company.
(c) At least five persons are needed to form a public company.
(d) The minimum paid up capital of a private company must be Rupees five lakh.
(e) A private company can invite public deposits.
(f) The shares of a public company are transferable.
(g) A subsidiary of a public company is also a public company.
(h) The concept of private company deemed to be public no longer exists in India.
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