The transfer of ownership of a public enterprise to individual and firms is called

Answer Details

Privatization is the process of transferring ownership of a public enterprise (a business or industry owned by the government) to private individuals and firms. This is typically done by selling the government's shares or assets to private buyers, either through public share offerings on the stock exchange or direct sale to private investors.

Governments pursue privatization for several reasons: to improve efficiency through market competition, to reduce the financial burden of running loss-making enterprises, to generate revenue from the sale, and to encourage private sector participation in the economy.

The other terms describe different processes:

• Restructuring involves reorganizing the internal operations, management, or financial structure of an enterprise without necessarily changing ownership.
• Commercialization means making a government enterprise operate on commercial principles (seeking profit, reducing waste) while the government retains ownership.
• Nationalization is the opposite of privatization - it involves the government taking over privately owned enterprises and bringing them under public ownership.