Examkin

Question

Difficulty: MediumPublic Corporations: Organization, Commercialization, Privatization, and Control

When a government restructures a state-owned public enterprise to operate efficiently on a commercial, profit-making basis while retaining full state ownership of its equity, which policy measure is being implemented?

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

Answer

Commercialization is the policy measure being implemented.
Commercialization is a public enterprise reform strategy that reorganizes state-owned corporations to run profit-oriented, financially self-sufficient operations while retaining full government ownership and control of assets.

Step-by-Step Solution

1
Examine the status of equity ownership in the given restructuring process.
The government maintains 100% equity ownership of the enterprise.
Determining whether asset ownership shifts to the private sector is essential for identifying the reform mechanism.
2
Examine the operational objective introduced by the reform.
The enterprise is restructured to run on commercial principles and achieve financial profitability.
Reorganizing state-owned enterprises to run on a profit basis while retaining government ownership defines commercialization.

Key Concept

Distinction between commercialization and privatization in public enterprise reforms
Rate this question

Topics

Public Corporations: Organization, Commercialization, Privatization, and Control

More questions from this topic