Question Bank - General Knowledge

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Which of the following can be defined as "the process in which the government sells a majority stake to one or more companies, while the government still owns it and the minority stakeholder as in persists"?

A.
Disinvestment
B.
Displacement
C.
Delegation
D.
Divergence

Solution:

The correct answer is Disinvestment.Disinvestment can be defined as the process in which the government sells a majority stake to one or more companies, while the government still owns it and the minority stakeholder persists.It is the process of selling subsidiary assets, investments, or divisions of a company in order to maximize the value of the parent company. Additional InformationIn finance and economics, Disinvestment is the reduction of some kind of asset for financial, ethical, or political objectives or the sale of an existing business by a firm.A Disinvestment is the opposite of an investment.Divestiture is an adaptive change and adjustment of a company's ownership and business portfolio made to confront with internal and external changes.

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