Question

Why does the government transfer the ownership and management of government-run companies to private individuals?

• A. The private sector can take over the company's management to reduce the burden of the government.
• B. The private sector invests in the modernisation of the companies.
• C. The private sector can take up the task of social welfare on behalf of the government.
• D. Lesser government involvement can reduce corruption and red tapism.

Answer 1

Answer: (A), (B), (D)

Lesser government involvement can reduce corruption and red tapism.

Privatisation is done to reduce the burden of the government so that it can work on other important areas. Red tapism and corruption can also be reduced. Private sector investments improve technology, and the production can also be made easier.