- This topic has 5 replies, 3 voices, and was last updated 2 years ago by
.
- Posts
I encountered this question while doing CIMA exam kit. Does anyone can explain why “the money goes to the government under privatisation” please?
Question: When privatisation takes place, ______ .
Answer: assets are transferred from the public sector and money goes to the government.
Privatisation is then a government-owned organisation is moved to the private sector.
For example, until the 1980’s the UK telephone system was owned by the state. The government privatised it by moving its assets into a new company (British Telecom, or BT) and then sold shares in that company to private investors. The government receives the proceeds of the share issue.
Ah I see. I thought the money was referring to the profit earned by the privatised companies. Thank you for your explanation.
Privatization is then an administration claimed association is moved to the private area.
For instance, until the 1980’s the UK phone framework was claimed by the state. The public authority privatized it by moving its resources into another organization (British Telecom, or BT) and afterward offered shares in that organization to private financial backers. The public authority gets the returns of the offer issue. https://pakistantutor.com/
- The topic ‘Privatisation’ is closed to new replies.