Which term describes the transfer of ownership from the public sector to the private sector, typically via sale?

Which term describes the transfer of ownership from the public sector to the private sector, typically via sale?

• A. Privatisation
• B. Nationalisation
• C. Outsourcing
• D. Public-private partnership

Answer: (A)

Privatisation is the transfer of ownership from the public sector to the private sector, usually through the sale of state-owned companies or assets. When ownership moves to private hands, control and decision-making also shift to private investors, which is the defining feature of privatisation. Nationalisation describes the opposite: bringing private assets into public ownership. Outsourcing involves the government hiring a private firm to deliver a service while the government still owns the asset and retains overall responsibility. A public-private partnership is a collaborative arrangement where both sectors share risks and responsibilities for delivering a project, and ownership may remain with the public sector. So the term that fits the description of ownership moving from public to private via sale is privatisation.

Privatisation is the transfer of ownership from the public sector to the private sector, usually through the sale of state-owned companies or assets. When ownership moves to private hands, control and decision-making also shift to private investors, which is the defining feature of privatisation.

Nationalisation describes the opposite: bringing private assets into public ownership. Outsourcing involves the government hiring a private firm to deliver a service while the government still owns the asset and retains overall responsibility. A public-private partnership is a collaborative arrangement where both sectors share risks and responsibilities for delivering a project, and ownership may remain with the public sector.

So the term that fits the description of ownership moving from public to private via sale is privatisation.