Question

What are the 2 ways in which government companies can be converted into private companies?

• A. Withdrawal of the government from ownership and management of public sector companies
• B. Outright sale
• C. Registration of public companies as private companies
• D. A and B

Answer 1

Answer: (D)

A and B

Government companies can be converted into private companies in two ways (i) by withdrawal of the government from ownership and management of public sector companies and or (ii) by outright sale of public sector companies. The process is called disinvestment. Where the government sells part or whole assets of its company to the private sector.