Why does privatization typically occur? What types of industries are candidates for privatization?
What will be an ideal response?
Privatization, or the conversion of state-owned property to privately owned property, occurs when countries believe that private firms could bring additional investments and manage the operations more efficiently than the government. Most state-owned enterprises that are sold to the private sector are unprofitable, undercapitalized, and overstaffed. Telecommunications firms are commonly privatized because governments can't afford to keep up with technological changes.
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Michael Company issued 8% bonds with a par value of $1,000,000, receiving a $20,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is:
A) $0 . B) $10,000 gain. C) $10,000 loss. D) $22,000 gain. E) $22,000 loss.
Marketing research is most commonly used to:
A) develop a training program for the marketing manager. B) create job descriptions for various roles in the marketing department. C) determine the key responsibility areas for the marketing manager. D) refine new product concepts.