Commercialization And Privatization

Question 1

What is Commercialization?

Answer 1

Commercialization is the process of running state owned enterprises with the primary aim of making profit

Question 2

What is privatization?

Answer 2

Privatization I’d the process of transferring control and ownership of industries,companies or corporation from public sector to private sector

Question 3

Reasons for Commercialization and privatization

Answer 3

1. They help to develop a good and efficient management of enterprises
2. They assist individuals to participate in economic activities through ownership of enterprises
3. They assist the government to generate more revenue
4. Assist to remove unproductive enterprises

Question 4

Advantages of commercialization and privatization

Answer 4

1. Commercialization and privatization help in reducing public expenditure on enterprises that are not liable
2. Helps to boost the generation of more revenue for the government
3. They assist the consumers to have a wide range of choice

Question 5

Disadvantages of Commercialization and privatization

Answer 5

1. They lead to poker standard of living of the people due to shift in interest from pure service delivery to maximizing of profit
2. Associated with high cost of products