New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    In the case of Maruti-Suzuki, the Union Government

    surrendered partial ownership and sold the majority stake to Suzuki of Japan in the course of time. This is the case of:
    A disinvestment Correct Answer Incorrect Answer
    B displacement Correct Answer Incorrect Answer
    C partial disinvestment Correct Answer Incorrect Answer
    D delegation Correct Answer Incorrect Answer

    Solution

    The case of the Union Government surrendering partial ownership and selling the majority stake to Suzuki of Japan in Maruti-Suzuki is an example of disinvestment. Disinvestment refers to the process of the government or an organization selling or reducing its ownership in a particular company or asset. In this case, the Union Government reduced its ownership stake in Maruti-Suzuki by selling a part of its shares to Suzuki of Japan, making it a partial disinvestment.

    Practice Next