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?

A Delegation Correct Answer Incorrect Answer
B Divestment Correct Answer Incorrect Answer
C Displacement Correct Answer Incorrect Answer
D Disinvestment Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

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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