Privatization can involve which of the following actions?

Privatization can involve which of the following actions?

• A. The sale of public corporations
• B. Deregulation
• C. Contracting out
• D. Sale of land and property

Answer: (C)

Privatization means transferring the delivery of a public service from the government to a private provider. Contracting out fits this directly because the government keeps ownership and sets the terms, but hires a private company to carry out the service under a contract. This shows the public sector relying on private firms to deliver what was once provided in-house. The other ideas relate more to selling assets or changing regulatory rules rather than handing over the actual service delivery, so contracting out is the clearest example of privatization in action.

Privatization means transferring the delivery of a public service from the government to a private provider. Contracting out fits this directly because the government keeps ownership and sets the terms, but hires a private company to carry out the service under a contract. This shows the public sector relying on private firms to deliver what was once provided in-house. The other ideas relate more to selling assets or changing regulatory rules rather than handing over the actual service delivery, so contracting out is the clearest example of privatization in action.