Question

Assertion (A): The policy of converting public ownership of an asset to private ownership is Privatisation.

Reason (R): There is no sale of shares of Public Sector Undertaking.

Options

• (A) is true and (R) is false.

• (A) is false and (R) is true.

• Both (A) and (R) are true and (R) is the correct explanation of (A).

• Both (A) and (R) are true and (R) is not the correct explanation of (A).

Answer 1

(A) is true and (R) is false.

Explanation:

Privatisation means transferring ownership, assets, or management of public sector enterprises to private parties, usually by selling shares of Public Sector Undertakings (PSUs). Since the reason mentions that there is no sale of shares, it is incorrect. Therefore, the assertion is true, but the reason is false.