Question 28
Business OrganisationsWhen public enterprises become commercialized, it means that
- A.the products of the enterprises are further subsidized
- B.they are expected to operate with the primary aim of making profits
- C.the government has decided to divest itself of such enterprises
- D.the staff of the enterprises will be laid off.
Show the answer and explanation
Answer: B (they are expected to operate with the primary aim of making profits)
Explanation
Commercialization keeps the enterprise in government hands but requires it to run like a business and cover its costs or make profit.