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Difficulty: EasyPrivatization, Commercialization, and Deregulation of Public Enterprises

A state-owned broadcasting corporation is mandated by the government to charge commercial rates for its services and cover its operational expenses independently, without selling any of its shares to private individuals. Which economic reform policy does this scenario illustrate?

  1. CommercializationAnswer
  2. B
    Privatization
  3. C
    Deregulation
  4. D
    Nationalization

Answer

Commercialization
Commercialization is the economic reform policy where a state-owned enterprise is restructured to operate as a profit-making enterprise, withdrawing public subsidies and requiring it to cover its operating costs while state ownership remains intact.

Step-by-Step Solution

1
Analyze the financial mandate described in the scenario
The enterprise is required to charge commercial rates and operate for profit without relying on government subsidies.
Commercialization aims to make public utilities efficient, self-sustaining, and commercially viable.
2
Examine the ownership structure in the scenario
Full ownership remains with the state without transferring equity to private investors.
Maintaining 100% public ownership is the key characteristic distinguishing commercialization from privatization.

Key Concept

Commercialization of Public Enterprises
Estimated Time:45s
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Topics

Privatization, Commercialization, and Deregulation of Public Enterprises

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