Question

Match List-I with List-II

List-I (Term/Name)	List-II (Characteristics)
(A) Privatisation	(I) Work which focuses on providing services like trade, transport, financial services etc.
(B) Disinvestment	(II) Spread of investment into different types of economic activities in order to reduce risks.
(C) Tertiary sector	(III) Private companies can invest in sectors earlier reserved for the government.
(D) Diversification	(IV) The government sells its share in public sector companies.

Choose the correct answer from the options given below:

• (A) - (IV), (B) - (II), (C) - (III), (D) - (I)
• (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
• (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
• (A) - (III), (B) - (II), (C) - (I), (D) - (IV)

Hint:

Privatisation is a broad policy of increasing private sector participation, while disinvestment is a specific action of the government selling its shares in public companies. It's a key distinction in economic policy discussions.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
This question requires matching key economic and business terms with their correct definitions.
Step 2: Detailed Explanation:
(A) Privatisation: This is the process of transferring ownership, property, or business from the government (public sector) to the private sector. A key aspect of this is allowing private companies to invest in sectors earlier reserved for the government. (A) matches with (III).
(B) Disinvestment: This is a specific action where a government reduces its stake in a public sector enterprise. It means the government sells its share in public sector companies. (B) matches with (IV).
(C) Tertiary sector: The economy is often divided into three sectors: primary (raw materials), secondary (manufacturing), and tertiary (services). The tertiary sector is the service sector, which includes activities like trade, transport, financial services etc. (C) matches with (I).
(D) Diversification: In business and finance, this is a strategy to manage risk. It involves expanding into different areas, i.e., the spread of investment into different types of economic activities in order to reduce risks. (D) matches with (II).
Step 3: Final Answer:
The correct matching is: (A)-(III), (B)-(IV), (C)-(I), (D)-(II).