Question

Privatization is favoured and the ground is ___________.

• A. it helps in reduction of exchequer burden
• B. it helps the public sector unit to modernize, diversify and make it more competitive
• C. it helps in improvement of quality of decision-making of management
• D. all of the above

Answer 1

Answer: (D)

all of the above

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. It helps in reduction of exchequer burden. It helps the public sector unit to modernize, diversify and make it more competitive. It also helps in improvement of quality of decision-making of management