Q.The sale of a part of the government's equity shareholding in a public sector enterprise, while the government may retain a remaining stake, is known as:

This question distinguishes disinvestment, a partial sale of government equity, from a strategic sale, which additionally transfers management control to a single buyer.

This question asks students to identify the precise form of privatization from its description.

Option (A) Strategic Sale — this involves selling a large block of equity together with management control to a single strategic buyer, a more complete transfer than what the question describes. Not the answer.

Option (B) Disinvestment — this exactly matches the description: the government sells only part of its equity shareholding in a public enterprise, and may continue to hold a remaining stake, sometimes even a majority stake. This is the correct answer. …

Students sometimes treat disinvestment and strategic sale as identical because both involve selling government equity — the key distinguishing feature is that strategic sale ALSO transfers management control to the b …