BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS ENVIRONMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What happens when a good or service is privatized?
A
Costs increase and efficiency increases
B
Costs increase and efficiency decreases
C
Costs decrease and efficiency decreases
D
Costs decrease and efficiency increases
Explanation: 

Detailed explanation-1: -Privatization describes the process by which a piece of property or business goes from being owned by the government to being privately owned. It generally helps governments save money and increase efficiency, where private companies can move goods quicker and more efficiently.

Detailed explanation-2: -Economically, privatization at the micro-level tends to increase efficiency, quality, range of choices, innovation, reduces cost & prices, and ultimately raises the profits of the firm. These can be further downloaded into, high incentives, lesser political interference, healthy competition, and reinvestment.

Detailed explanation-3: -Privatisation was also regarded as an important supply-side policy designed to drive competition and improve productive and dynamic efficiency.

Detailed explanation-4: -Privatization of a Public Sector Undertaking can increase efficiency as private enterprises are more profit-oriented than the government. The management-level employees of a privately run business are more profit-oriented.

There is 1 question to complete.