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Question
Disinvestment by government means: (choose the correct alternative)
a. Selling of its fixed capital assets
b. Selling of shares of public enterprises held by it.
c. Selling of its buildings
d. All the above
Solution
The correct option is (b). Disinvestment takes place by public undertaking through the process of decreasing its portion in equity by disposing its shareholding. Hence, disinvestment by government means selling of shares of public enterprises held by it.
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Meaning of Disinvestment
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