Question

Sale of public enterprises to private sector is called __________.

• A. Globalisation
• B. Privatization
• C. Liberalization
• D. None of the above

Answer 1

The correct option is B Privatization

Privatization refers to giving greater role to private sector and reducing the role of public sector through disinvestment of public sector and dilution of stake of the government. Privatization results in better economic development due to more resources from private sector, better management due high competition in private sector and encouragement of entrepreneurial skills into the individual.