1.1.5 privatisation

Question 1

Privatisation

Answer 1

The transfer of ownership of a company from the public sector to the private sector

Question 2

Effects of privatisation on consumers

Answer 2

• Increased quality
• Better prices
• Can meet more consumer needs
• More efficient

Question 3

Effects of privatisation on workers

Answer 3

• May decrease amount of workers
• Urged to increase productivity
• Can adopt more flexible working practices

Question 4

Effects of privatisation on businesses

Answer 4

• Have to face competition
• Changed objectives
• Increased investments
• Merges and takeovers
• More diversified into different areas

Question 5

Effects of privatisation on the government

Answer 5

• Larger amount of revenue
• Can focus more on government business