Question

What is meant by divestment, privatization & nationalization?

Answer 1

Answer: Meaning of disinvestment - Disinvestment is a common term with companies , when a company needs to raise capital too quickly to finance new operations or pay clearance of liabilities . This can also be explained as the capital investment reflected by decrease in capital goods and when the company decides not to replace the depleted capital goods .

Explanation: Privatisation - It can simply be explained , transfer of services and operations owned by the goverment to private sector .This is generally done to increase goverment efficiency and revenue .

Nationalization -The term which reciprocates privatization , to bring under the control and ownership of the nation , or the process of goverment taking control of a business or service provision , industry .

Answer 2

What is meant by divestment, privatization & nationalization.

Explanation:

• Divestment is the reduction of assets for some financial, ethical, and political objective or sales of the existing business. In divestment, there is a change in the companies ownership and business portfolio.

• Privatization is the process by which the business is operated privately. Which helps the government to save money and decrease efficiency. Her government service is transferred to the private sector.

• Nationalization is the process by which the privately owned assets are transformed into public ownership or a nation or state and are assets owned by the lower levels of the government such as the municipalities.

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