State any two ways by which the government can execute the step of disinvestment.
State any two ways by which the government can execute the step of disinvestment.
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Solution and Explanation
Disinvestment means the government sells all or part of its ownership in public sector companies.
The question asks for any two ways of doing it, so we give two for 2 marks, one mark each.
Step 2: Way 1: Withdrawal from ownership and management:
The government can withdraw from the ownership and management of public sector companies.
The company then no longer runs under government control.
Step 3: Way 2: Outright sale:
The government can sell public sector companies outright.
The buyer, usually a private party, becomes the new owner.
Final Answer:
Two ways to execute disinvestment: (1) withdrawal of the government from the ownership and management of public sector companies, and (2) outright sale of public sector companies.
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