Current Affairs Exam > Current Affairs Questions > Consider the following statements.1. Disinves...
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Consider the following statements.
1. Disinvestment involves Selling minority shares of Public Enterprises, to public or private entity.
2. When the government sells minority shares in a public sector entity, that is strategic disinvestment.
Which of the above statements is/are incorrect?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
Consider the following statements.1. Disinvestment involves Selling mi...
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.
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 majority shares in an enterprise, that is strategic disinvestment/sale. Here, the government gives up the ownership of the entity as well.
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 majority shares in an enterprise, that is strategic disinvestment/sale. Here, the government gives up the ownership of the entity as well.
Most Upvoted Answer
Consider the following statements.1. Disinvestment involves Selling mi...
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.
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 majority shares in an enterprise, that is strategic disinvestment/sale. Here, the government gives up the ownership of the entity as well.
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 majority shares in an enterprise, that is strategic disinvestment/sale. Here, the government gives up the ownership of the entity as well.
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Community Answer
Consider the following statements.1. Disinvestment involves Selling mi...
Explanation:
Statement 1:
Disinvestment refers to the sale of shares of public sector enterprises by the government to the public or private entities. It can involve selling either minority or majority shares of the public enterprises. Therefore, statement 1 is incorrect as it states that disinvestment only involves selling minority shares.
Statement 2:
Strategic disinvestment refers to the sale of a significant portion of shares (more than 50%) of a public sector entity by the government to a private entity. This is done to transfer control and management of the entity to the private sector. Therefore, statement 2 is also incorrect as it states that strategic disinvestment is only when minority shares are sold.
Conclusion:
Both statement 1 and statement 2 are incorrect as they do not provide accurate definitions of disinvestment and strategic disinvestment. Disinvestment can involve selling both minority and majority shares of public enterprises, while strategic disinvestment specifically refers to the sale of a significant portion of shares to transfer control and management to the private sector. Therefore, the correct answer is option 'B', both statements 1 and 2 are incorrect.
Statement 1:
Disinvestment refers to the sale of shares of public sector enterprises by the government to the public or private entities. It can involve selling either minority or majority shares of the public enterprises. Therefore, statement 1 is incorrect as it states that disinvestment only involves selling minority shares.
Statement 2:
Strategic disinvestment refers to the sale of a significant portion of shares (more than 50%) of a public sector entity by the government to a private entity. This is done to transfer control and management of the entity to the private sector. Therefore, statement 2 is also incorrect as it states that strategic disinvestment is only when minority shares are sold.
Conclusion:
Both statement 1 and statement 2 are incorrect as they do not provide accurate definitions of disinvestment and strategic disinvestment. Disinvestment can involve selling both minority and majority shares of public enterprises, while strategic disinvestment specifically refers to the sale of a significant portion of shares to transfer control and management to the private sector. Therefore, the correct answer is option 'B', both statements 1 and 2 are incorrect.
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Consider the following statements.1. Disinvestment involves Selling minority shares of Public Enterprises, to public or private entity.2. When the government sells minority shares in a public sector entity, that is strategic disinvestment.Which of the above statements is/are incorrect?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
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