Theory question 108
Business OrganisationsExplain each of the following: (a) Nationalization; (b) Commercialization; (c) Privatization; (d) Joint Ventures.
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(a) Nationalization: government taking over ownership and control of privately owned businesses, usually with compensation.
(b) Commercialization: reorganising a public enterprise to run on commercial lines, covering its costs and making profit, without government subsidy, while it stays government-owned.
(c) Privatization: transfer of ownership of public enterprises, wholly or partly, to private individuals or firms, usually by selling shares.
(d) Joint venture: a business owned and controlled jointly by two or more parties, e.g. government and foreign firms, sharing capital, risks and profits.
Give a clear one-line definition and an example for each.