Advantages & Disadvantages of Privatized State-Owned Businesses
What are advantages and disadvantages of privatization of state-owned business?
A number of not-for-profit organizations in the United States have been converting to profit-making. Why would a not-for-profit organization want to change its status to profit-making? What are the pros and cons of doing so?
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Advantages & Disadvantages of Privatization of State-Owned Business
Privatization of state owned business is the transfer of possession of property or businesses from a government to a privately possessed entity along with subsequent advantages and disadvantages:
Advantages:
- With this privatization state's revenue get increased.
- Investment capital of the industry is being regenerated.
- Increase in efficiency.
- In market more competition starts appearing.
- Government's role in the economy decreases (Donahue, 1989).
Disadvantages:
- Private sector creates an environment of monopoly.
- Government have lack of control.
- Money of ...
Solution Summary
The solution discusses the advantages and disadvantages of privatization of state-owned businesses.