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Consider the following statements.
1. Disinvestment involves selling minority shares of Public Enterprises, to a public or private entity.
2. When the government sells majority shares in a public sector entity that is strategic disinvestment.
3. Under strategic disinvestment, the government transfers the ownership and control of a public sector entity to another public entity and the private sector is not involved here.
Which of the above statements is/are correct?
  • a)
    1 and 3 only
  • b)
    1 and 2 only
  • c)
    2 and 3 only
  • d)
    All of the above
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements.1. Disinvestment involves selling m...
Explanation:

Disinvestment is the process of selling shares of a public sector enterprise to a private or public entity. The government can choose to sell minority or majority shares. Strategic disinvestment is a process where the government sells its majority shares in a public sector enterprise to a private or public entity. The process involves transferring ownership and control of the public sector enterprise.

The following statements are given:

1. Disinvestment involves selling minority shares of Public Enterprises, to a public or private entity.

This statement is correct. Disinvestment can involve selling minority shares of public sector enterprises to public or private entities. The government can choose to sell shares through the stock market or a strategic sale.

2. When the government sells majority shares in a public sector entity that is strategic disinvestment.

This statement is correct. Strategic disinvestment involves selling the majority shares of a public sector enterprise to a private or public entity. The government can choose to sell shares through the stock market or a strategic sale.

3. Under strategic disinvestment, the government transfers the ownership and control of a public sector entity to another public entity and the private sector is not involved here.

This statement is incorrect. Under strategic disinvestment, the government can transfer ownership and control of a public sector enterprise to a private or public entity. The private sector can be involved in the purchase of shares.

Therefore, the correct answer is option B, which states that statements 1 and 2 only are correct.
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Community Answer
Consider the following statements.1. Disinvestment involves selling m...
What is strategic disinvestment or strategic sale?
When the government decides to transfer the ownership and control of a public sector entity to some other entity, either private or public, the process is called strategic disinvestment.
What is the difference between strategic disinvestment/sale and disinvestment?
Selling minority shares of Public Enterprises, to another entity be it public or private is disinvestment. In this, the government retains ownership of the enterprise. On the other hand, when the government sells the majority shares in an enterprise, that is strategic disinvestment/sale. Here, the government gives up ownership of the entity as well.
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Consider the following statements.1. Disinvestment involves selling minority shares of Public Enterprises, to a public or private entity.2. When the government sells majority shares in a public sector entity that is strategic disinvestment.3. Under strategic disinvestment, the government transfers the ownership and control of a public sector entity to another public entity and the private sector is not involved here.Which of the above statements is/are correct?a) 1 and 3 onlyb) 1 and 2 onlyc) 2 and 3 onlyd) All of the aboveCorrect answer is option 'B'. Can you explain this answer?
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Consider the following statements.1. Disinvestment involves selling minority shares of Public Enterprises, to a public or private entity.2. When the government sells majority shares in a public sector entity that is strategic disinvestment.3. Under strategic disinvestment, the government transfers the ownership and control of a public sector entity to another public entity and the private sector is not involved here.Which of the above statements is/are correct?a) 1 and 3 onlyb) 1 and 2 onlyc) 2 and 3 onlyd) All of the aboveCorrect answer is option 'B'. 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.1. Disinvestment involves selling minority shares of Public Enterprises, to a public or private entity.2. When the government sells majority shares in a public sector entity that is strategic disinvestment.3. Under strategic disinvestment, the government transfers the ownership and control of a public sector entity to another public entity and the private sector is not involved here.Which of the above statements is/are correct?a) 1 and 3 onlyb) 1 and 2 onlyc) 2 and 3 onlyd) All of the aboveCorrect answer is option 'B'. 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.1. Disinvestment involves selling minority shares of Public Enterprises, to a public or private entity.2. When the government sells majority shares in a public sector entity that is strategic disinvestment.3. Under strategic disinvestment, the government transfers the ownership and control of a public sector entity to another public entity and the private sector is not involved here.Which of the above statements is/are correct?a) 1 and 3 onlyb) 1 and 2 onlyc) 2 and 3 onlyd) All of the aboveCorrect answer is option 'B'. Can you explain this answer?.
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