Question
1.9 Which of the following is one of the benefits of privatization: a) Increased taxes b) Reduced share ownership and economic stability c) Politicized managerial decision-making d) Reduced catering for consumer needs e) None of the above
Ask by Gibson Gibson. in South Africa
Nov 23,2024
Upstudy AI Solution
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Answer
The correct answer is e) None of the above. Privatization aims to improve efficiency and cater to consumer needs.
Solution
The correct answer is **e) None of the above**.
Privatization typically aims to improve efficiency, increase competition, and better cater to consumer needs, rather than the options listed in a) through d).
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Privatization often leads to increased efficiency in service delivery as private companies are frequently more motivated to cut costs and increase profits, benefiting consumers with better services and lower prices. This focus on profitability typically encourages innovation and responsiveness to market demands. Moreover, privatization can spur investments because private entities usually have more access to capital markets. This influx of investment can help drive economic growth and even lead to improved infrastructure, further enhancing the quality of services available to consumers and businesses alike.
