UPSC Exam > UPSC Questions > Consider the following statements regarding t...
Start Learning for Free
Consider the following statements regarding the privatization of the public sectors:
1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.
2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.
1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.
2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.
Which of the above statements is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Consider the following statements regarding the privatization of the p...
- Both statements are correct
Supplementary notes:
Privatization
- Privatization implies the shedding of the ownership or management of a governmentowned enterprise. Government companies are converted into private companies in two ways:
- By the withdrawal of the government from ownership and management of public sector companies and/or
- By the outright sale of public sector companies.
- Privatization of the public sector enterprises (PSEs) by selling off part of the equity of PSEs to the public is known as disinvestment.
- The purpose of the sale is mainly to improve financial discipline and facilitate modernization. It is also envisaged that private capital and managerial capabilities could be effectively utilized to improve the performance of the public sector units (PSUs).
- An efficient and profit earning PSU is a revenue generator for the government. But if a PSU is an inefficient and loss-making one, then the same PSU exerts unnecessary burden on the government’s scarce revenues and further may lead to the budget deficit. Hence the loss-making PSUs should be privatized whereas it would be unfair to privatize a profit-making PSU.
- Instead of privatization of profit-making PSUs, the government can allow more degree of autonomy and accountability in their operations, which will not only increase their productivity and effi ciency but also enhance their competitiveness with their private counterparts.
Most Upvoted Answer
Consider the following statements regarding the privatization of the p...
Privatization of Public Sectors
Privatization of public sector enterprises (PSEs) involves selling off part of their equity, which is known as disinvestment. This process allows private investors to own shares in these previously government-owned entities.
Purpose of Privatization
The main purpose of privatization is to improve financial discipline and facilitate modernization within the public sector. By bringing in private ownership and management, efficiency and productivity can increase, leading to better performance and profitability.
Therefore, both statements are correct as disinvestment is a form of privatization, and the ultimate goal of privatization is to enhance financial discipline and modernize the public sector.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Top Courses for UPSCView all
Consider the following statements regarding the privatization of the public sectors:1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
Question Description
Consider the following statements regarding the privatization of the public sectors:1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding the privatization of the public sectors:1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the privatization of the public sectors:1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements regarding the privatization of the public sectors:1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding the privatization of the public sectors:1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the privatization of the public sectors:1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements regarding the privatization of the public sectors:1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Consider the following statements regarding the privatization of the public sectors:1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following statements regarding the privatization of the public sectors:1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Consider the following statements regarding the privatization of the public sectors:1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Consider the following statements regarding the privatization of the public sectors:1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements regarding the privatization of the public sectors:1. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of them is known as disinvestment.2. The purpose of the privatization is mainly to improve financial discipline and facilitate modernization.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup