Which process involves the government selling businesses to private shareholders?

Privatisation is the process through which the government transfers ownership of public sector businesses or assets to private individuals or entities. This typically involves selling shares or assets to private shareholders, allowing them to have control and potentially profit from the operations of those businesses.

The rationale behind privatisation often includes goals such as increasing efficiency, reducing government debt, enhancing competition, and providing quality services driven by profit motives. By transferring ownership to the private sector, the government can focus on its core responsibilities while allowing private entities to manage the businesses more flexibly.

In contrast, nationalization refers to the government taking control or ownership of private enterprises, while public ownership indicates that resources or enterprises are owned collectively by the state or government. State control implies government regulation or oversight without necessarily transferring ownership. These processes differ fundamentally from privatisation, as they do not involve selling businesses to private shareholders.