Privatisation transfers state assets to private ownership

Steps:

• Define privatisation as the process of selling government-owned enterprises to private entities.
• Review each option to identify if it involves a shift from public to private control.
• Eliminate options that describe private-to-private transactions or government takeovers.
• Confirm the matching option based on the core definition.

Why A is correct:

• Privatisation is the transfer of ownership from the public sector to the private sector, as defined in economic policy; selling a state-owned power company fits this exactly.

Why the others are wrong:

• B involves a private sale to another private firm, not government divestment.
• C describes nationalisation, where government acquires private assets.
• D is a merger between two private companies, unrelated to state involvement.

Final answer: A