Introduction:
In the field of business, there are various types of enterprises that operate with different objectives and ownership structures. Public, private, and global enterprises are three such categories. In this context, if a public sector company is incurring heavy losses and the government decides to close it down, the term related to this action is known as "Privatisation."

Explanation:
Privatisation refers to the process of transferring ownership and control of a public sector company to the private sector. It involves the sale of government-owned assets, shares, or equity to private individuals or organizations. The main objective of privatisation is to improve the efficiency and profitability of the company by bringing in private sector expertise, technology, and management practices. It is often undertaken when a public sector company is incurring heavy losses or facing financial instability.

Reasons for Privatisation:
There are several reasons why the government may choose to privatize a public sector company that is incurring heavy losses:

1. Financial Performance: Privatisation is considered when a public sector company is consistently making losses and is unable to generate sufficient revenue to sustain its operations. By handing over the management to the private sector, the government expects to improve the financial performance of the company and reduce the burden on taxpayers.

2. Efficiency and Productivity: Private companies are often perceived to be more efficient and productive compared to public sector entities. Privatisation aims to introduce market-oriented practices, competition, and innovation into the operations of the company, which can lead to improved efficiency and productivity.

3. Focus on Core Functions: Privatisation allows the government to concentrate on its core functions such as policymaking, regulation, and infrastructure development, rather than managing and operating businesses. By transferring the ownership to the private sector, the government can focus its resources on areas where its intervention is more crucial.

4. Job Creation and Economic Growth: Privatisation can lead to job creation and economic growth as private companies are expected to invest in modernization, expansion, and technology upgrades. This, in turn, can boost employment opportunities and contribute to overall economic development.

5. Access to Capital and Expertise: Private companies have better access to capital markets, allowing them to raise funds for investment and growth. They also have access to specialized expertise in areas such as marketing, finance, and technology, which can contribute to the turnaround of a struggling company.

Conclusion:
In summary, when a public sector company is incurring heavy losses and the government decides to close it down, the term associated with this action is privatisation. Privatisation aims to improve the financial performance, efficiency, and productivity of the company by transferring ownership and control to the private sector. It allows the government to focus on its core functions, promotes job creation and economic growth, and provides access to capital and expertise.

A. ( disinvestment ) is correct .....