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A feature common to privatization and commercialization is?


Question

A feature common to privatization and commercialization is?

Options

A)
profit-making
B)
credit sales
C)
market expansion
D)
price increases

The correct answer is A.

Explanation:

This question is asking what is a feature that is common to both privatization and commercialization. Privatization refers to the transfer of ownership or control of a government-owned enterprise to a private entity, while commercialization refers to the process of making a government-owned enterprise operate in a more business-like manner.

The correct answer to this question is option A: profit-making. Both privatization and commercialization involve the aim of making a profit. When a government-owned enterprise is privatized or commercialized, the goal is to make it more efficient and profitable. This is achieved by introducing market-based incentives, such as competition and profit maximization, which are not typically present in government-run enterprises.

It is important to note that while profit-making is a common feature of both privatization and commercialization, there are also differences between the two. Privatization involves the transfer of ownership or control of a government-owned enterprise to a private entity, while commercialization involves making a government-owned enterprise operate more like a business.

To learn more about privatization and commercialization, please see the relevant sections of your Commerce textbooks.


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