Question
Government keeps hold of responsibility and private
enterprise handles fully or partly the delivery of product and services. This is which type of privatization?Solution
Privatization can be categorized in to three parts: Delegation: Government keeps hold of responsibility and private enterprise handles fully or partly the delivery of product and services. Divestment: Government surrenders the responsibility. Displacement: The private enterprise expands and gradually displaces the government entity. Privatization certainly is beneficial for the progress and sustainability of the state/centre -owned enterprises.
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