Which term refers to the permanent transfer of ownership of a public asset to the private sector, resulting in reduced government control?

Which term refers to the permanent transfer of ownership of a public asset to the private sector, resulting in reduced government control?

• A. Public-Private Partnership
• B. Privatization
• C. Market Research
• D. Outsourcing

Answer: (B)

The concept being tested is privatization. It refers to the permanent transfer of ownership of a public asset to a private entity, with the government relinquishing ownership and reducing direct control over that asset. This matches the question’s description exactly: ownership moves from public to private, and government control diminishes. This differs from a public-private partnership, which is a collaborative arrangement where both sectors share risks, responsibilities, and often ownership; the asset may remain public or not be fully transferred. Outsourcing shifts service delivery to a private contractor while the asset and ultimate ownership stay with the government. Market research is unrelated to ownership transfer and focuses on gathering information for decisions.

The concept being tested is privatization. It refers to the permanent transfer of ownership of a public asset to a private entity, with the government relinquishing ownership and reducing direct control over that asset. This matches the question’s description exactly: ownership moves from public to private, and government control diminishes.

This differs from a public-private partnership, which is a collaborative arrangement where both sectors share risks, responsibilities, and often ownership; the asset may remain public or not be fully transferred. Outsourcing shifts service delivery to a private contractor while the asset and ultimate ownership stay with the government. Market research is unrelated to ownership transfer and focuses on gathering information for decisions.