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: Comprehension Objective:
This task requires aligning economic and business terminology with their precise definitions.

Step 2: Detailed Breakdown:

(A) Privatisation: Transfer of government ownership, property, or business to the private sector. This enables private entities to participate in sectors previously exclusive to government. (A) corresponds to (III).
(B) Disinvestment: Governmental action to reduce its equity in a public enterprise, signifying the sale of government stakes in public sector companies. (B) corresponds to (IV).
(C) Tertiary Sector: The economic structure comprises primary (resources), secondary (manufacturing), and tertiary (services). The tertiary sector is the service industry, encompassing activities such as commerce, logistics, and financial services. (C) corresponds to (I).
(D) Diversification: A risk management strategy in business and finance involving expansion into varied domains, specifically allocating investments across different economic activities to mitigate risks. (D) corresponds to (II).


Step 3: Conclusion:
The accurate pairings are: (A)-(III), (B)-(IV), (C)-(I), (D)-(II).