Theory question 106
Business OrganisationsSection B (answer four questions only from this section)
Explain any four of the following terms: (a) Nationalization (b) Commercialization (c) Privatization (d) Indigenization (e) Joint Ventures.
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(a) Nationalisation: government takes over ownership and control of privately owned enterprises, usually with compensation.
(b) Commercialisation: government-owned enterprises are reorganised to run on commercial (profit-making) lines and become self-financing, without selling them.
(c) Privatisation: transfer of ownership of government enterprises (wholly or partly) to private individuals and firms, e.g. by sale of shares.
(d) Indigenisation: government policy transferring ownership and control of businesses from foreigners to citizens.
(e) Joint venture: a business owned jointly by two or more parties, e.g. government and a foreign firm, sharing capital, risks and profit (e.g. NNPC and oil companies).
Any four, each defined with an example.