Q. Which of the following methods is/are comes under privatization?
1. Sale of public enterprises to private sector.
2. Disinvestment of public enterprise equity.
3. Participation of private sector in management in public sector enterprises.
Select the correct answer using the codes given below:

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: D

Privatization is the process of transferring an enterprise or industry from the public sector to the private sector.  

  • The public sector is the part of the economic system that is run by government agencies.  
  • Privatization may involve either sale of government-held assets or removal of restrictions preventing private individuals and businesses from participating in a given industry.  
  • Privatization is an ongoing trend in many parts of the developed and developing world. Proponents of privatization maintain that the competition in the private sector fosters more efficient practices, which eventually yield better service and products, lower prices and less corruption. 

Source: TMH Ramesh Singh