UPSC CDS GS Economy Questions Part 2

Classification of an enterprise into public or private sector isbased on ownership of assets of the enterprise. Privatisation implies shedding off the ownership or management of a government owned enterprise. Government companies can be converted into private companies in two ways: (i) by withdrawal of the government from ownership and management of public sector companies.(ii) by outright sale of public sector companies. In other words, ownership of assets of the enterprise decides whether givenenterprise is public sector or private sector. Hence, option (b) is theanswer.