Theory question 109
Government and BusinessCommerce 2 (essay)
(a) Define the following terms:
(i) Nationalization;
(ii) Indigenization;
(iii) Commercialization;
(iv) Privatization.
(b) State four why government should participate in business.
Show the model answer
(a)(i) Nationalisation – government takes over ownership and control of privately owned businesses.
(ii) Indigenisation – transferring ownership and control of businesses from foreigners to citizens.
(iii) Commercialisation – reorganising government enterprises to run on commercial (profit) lines while remaining government-owned.
(iv) Privatisation – selling all or part of government-owned enterprises to private individuals or firms.
(b) Any four: to provide essential services at low cost; to control strategic industries; to prevent private monopolies exploiting consumers; projects too large for private investors; to create jobs; to ensure balanced development; to earn revenue.
In (b) the question means 'four reasons why'.