Examkin

Question

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

Public enterprise reforms in Nigeria often involve either commercialization or privatization. Which of the following best describes the essential feature of commercialization?

  1. Retaining government ownership while reorganizing the enterprise to operate efficiently for profitAnswer
  2. B
    Transferring majority ownership and control of government assets to private investors
  3. C
    Abolishing the enterprise board and converting it into a civil service ministerial department
  4. D
    Placing the day-to-day operations of the enterprise directly under parliamentary management

Answer

Commercialization involves retaining government ownership while reorganizing the enterprise to operate efficiently for profit.
Commercialization is a structural reform where a government-owned enterprise is restructured to run on commercial principles and generate profit while remaining fully or predominantly under government ownership.

Step-by-Step Solution

1
Define commercialization in the context of public enterprise reform.
Recognize that commercialization aims to make public corporations self-sustaining and profit-driven.
Establishing the functional goal of commercialization is essential to identify its core feature.
2
Compare asset ownership under commercialization and privatization.
Confirm that state ownership is retained in commercialization, whereas state equity is divested in privatization.
Ownership status is the main distinguishing factor between commercialization and privatization.

Key Concept

Definition and Feature of Commercialization
Estimated Time:45s
Rate this question

Topics

Public Corporations: Organization, Commercialization, Privatization, and Control

More questions from this topic