Question 18
Business OrganisationsWhen a firm is nationalized,
- A.former owners are removed without compensation
- B.it has the right to draw on state funds for capital investment
- C.it must break even within a specified period
- D.workers take control of the firm.
Show the answer and explanation
Answer: B (it has the right to draw on state funds for capital investment)
Explanation
A nationalised firm is owned by the state, so it can be funded from public money.