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The main object of disinvestment is________.
  • a)
    To raise financial resources for public sector enterprises
  • b)
    To put national resources and assets to optional use for public sector enterprises
  • c)
    To benefit investors from selling shares of public sector enterprises
  • d)
    To help government to pay their debts.
Correct answer is option 'C'. Can you explain this answer?
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The main object of disinvestment is________.a)To raise financial resou...
Objectives of Disinvestment

Disinvestment is the process of selling government's stake in public sector enterprises. The main objectives of disinvestment are as follows:

1. To raise financial resources for public sector enterprises: Disinvestment helps in raising funds for public sector enterprises. The government can use these funds to invest in other sectors of the economy, which will promote economic growth.

2. To put national resources and assets to optional use for public sector enterprises: Disinvestment helps in putting national resources and assets to optimal use for public sector enterprises. Private sector companies are usually more efficient and productive than public sector enterprises. By selling government's stake in public sector enterprises, the government can bring in private sector efficiency and productivity, which will benefit the economy.

3. To benefit investors from selling shares of public sector enterprises: Disinvestment provides an opportunity for investors to buy shares in public sector enterprises. This will benefit investors who are looking for long-term investments in the stock market.

4. To help government to pay their debts: Disinvestment helps the government to pay its debts. The government can use the funds raised from disinvestment to pay off its debts, which will improve the country's financial health.

Conclusion

In conclusion, disinvestment is an important tool for the government to raise funds, improve the efficiency of public sector enterprises, and benefit investors. It is a win-win situation for everyone involved.
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The main object of disinvestment is________.a)To raise financial resources for public sector enterprisesb)To put national resources and assets to optional use for public sector enterprisesc)To benefit investors from selling shares of public sector enterprisesd)To help government to pay their debts.Correct answer is option 'C'. Can you explain this answer?
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