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Directions : Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below :
Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).
Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).
- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false .
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
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Directions : Read the following statements - Assertion (A) and Reason...
Disinvestment targets are set under each Union Budget, and every year the targets change. The government takes the final decision on whether to raise the divestment target or not. Disinvestment means sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets.
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Directions : Read the following statements - Assertion (A) and Reason...
Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).
Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).
The correct answer is option 'B' - Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Explanation:
Disinvestment of Public Sector Enterprises (PSEs)
Disinvestment refers to the sale of government-owned assets, such as shares in public sector enterprises, to private investors. The government fixes a target for disinvestment of Public Sector Enterprises (PSEs) each year. This means that the government aims to sell a certain percentage of its shares in these enterprises to private investors.
Reason for fixing a target for disinvestment
The reason for the government fixing a target for disinvestment is not necessarily to discard the losses incurred by Public Sector Enterprises (PSEs). While disinvestment can help in reducing the financial burden on the government, it is not the sole purpose. There are several reasons why the government may choose to disinvest in PSEs, including:
1. Revenue generation: Disinvestment can provide a source of revenue for the government. By selling its shares in PSEs, the government can generate funds that can be used for various purposes such as infrastructure development, social welfare programs, etc.
2. Encouraging private participation: Disinvestment promotes private participation in the economy. By selling shares to private investors, the government allows them to have a stake in the management and growth of these enterprises. This can lead to improved efficiency and performance of the PSEs.
3. Unlocking value: Disinvestment allows for the unlocking of the value of government-owned assets. PSEs may have significant assets and resources that can be better utilized by private investors. This can lead to the development of new business opportunities and economic growth.
4. Market discipline: Disinvestment introduces market discipline in the functioning of PSEs. When private investors hold a stake in these enterprises, they are more likely to demand transparency, accountability, and efficiency. This can help in improving the overall performance of the PSEs.
In conclusion, while the government does fix a target for disinvestment of Public Sector Enterprises (PSEs) each year, the primary reason for this is not to discard losses incurred by PSEs. Disinvestment serves multiple purposes, including revenue generation, encouraging private participation, unlocking value, and introducing market discipline. Therefore, the reason provided in the Assertion is not the correct explanation for the stated fact.
Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).
The correct answer is option 'B' - Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Explanation:
Disinvestment of Public Sector Enterprises (PSEs)
Disinvestment refers to the sale of government-owned assets, such as shares in public sector enterprises, to private investors. The government fixes a target for disinvestment of Public Sector Enterprises (PSEs) each year. This means that the government aims to sell a certain percentage of its shares in these enterprises to private investors.
Reason for fixing a target for disinvestment
The reason for the government fixing a target for disinvestment is not necessarily to discard the losses incurred by Public Sector Enterprises (PSEs). While disinvestment can help in reducing the financial burden on the government, it is not the sole purpose. There are several reasons why the government may choose to disinvest in PSEs, including:
1. Revenue generation: Disinvestment can provide a source of revenue for the government. By selling its shares in PSEs, the government can generate funds that can be used for various purposes such as infrastructure development, social welfare programs, etc.
2. Encouraging private participation: Disinvestment promotes private participation in the economy. By selling shares to private investors, the government allows them to have a stake in the management and growth of these enterprises. This can lead to improved efficiency and performance of the PSEs.
3. Unlocking value: Disinvestment allows for the unlocking of the value of government-owned assets. PSEs may have significant assets and resources that can be better utilized by private investors. This can lead to the development of new business opportunities and economic growth.
4. Market discipline: Disinvestment introduces market discipline in the functioning of PSEs. When private investors hold a stake in these enterprises, they are more likely to demand transparency, accountability, and efficiency. This can help in improving the overall performance of the PSEs.
In conclusion, while the government does fix a target for disinvestment of Public Sector Enterprises (PSEs) each year, the primary reason for this is not to discard losses incurred by PSEs. Disinvestment serves multiple purposes, including revenue generation, encouraging private participation, unlocking value, and introducing market discipline. Therefore, the reason provided in the Assertion is not the correct explanation for the stated fact.
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Directions : Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below :Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?
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Directions : Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below :Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below :Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below :Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?.
Directions : Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below :Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below :Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below :Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Directions : Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below :Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Directions : Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below :Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Directions : Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below :Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Directions : Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below :Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Directions : Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below :Assertion (A) : Every year the government fixes a target for disinvestment of Public Sector Enterprises (PSEs).Reason (R) : Disinvestment is an excellent tool for discarding the loss incurred by Public Sector Enterprises (PSEs).a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
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