Discussion Forum : Statement & Assumptions
Question -
Statement:
The government has decided to disinvest large chunk of its equity in selected public sector undertakings for a better fiscal management..
Assumptions:
I. The amount generated out of the disinvestment process may reduce substantially the mounting fiscal deficits.
II. There will be enough demand in the market for the shares of these undertakings.
The government has decided to disinvest large chunk of its equity in selected public sector undertakings for a better fiscal management..
Assumptions:
I. The amount generated out of the disinvestment process may reduce substantially the mounting fiscal deficits.
II. There will be enough demand in the market for the shares of these undertakings.
Answer: Option E
Answer: (e)VALID: Desired outcome. The government would have decided to disinvest the equity with a desire of generating enough amount which would manage the fiscal deficitVALID: Root Cause. The government would have decided to make the shares available in the market with an assumption that there would be enough demand for them in the market.
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Answer: (e)VALID: Desired outcome. The government would have decided to disinvest the equity with a desire of generating enough amount which would manage the fiscal deficitVALID: Root Cause. The government would have decided to make the shares available in the market with an assumption that there would be enough demand for them in the market.
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