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Privatisation

Forums › Ask CIMA Tutor Forums › Ask CIMA BA1 Tutor Forums › Privatisation

  • This topic has 5 replies, 3 voices, and was last updated 3 years ago by Ken Garrett.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • August 1, 2021 at 2:10 pm #630034
    aaronlieu
    Participant
    • Topics: 9
    • Replies: 9
    • ☆

    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.

    August 2, 2021 at 6:03 am #630087
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10595
    • ☆☆☆☆☆

    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.

    August 2, 2021 at 2:58 pm #630161
    aaronlieu
    Participant
    • Topics: 9
    • Replies: 9
    • ☆

    Ah I see. I thought the money was referring to the profit earned by the privatised companies. Thank you for your explanation.

    August 2, 2021 at 9:51 pm #630182
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10595
    • ☆☆☆☆☆

    You’re welcome.

    January 26, 2022 at 8:47 am #647501
    cireyek699
    Member
    • Topics: 0
    • Replies: 1
    • ☆

    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/

    January 28, 2022 at 8:15 am #647638
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10595
    • ☆☆☆☆☆

    I think that’s what I said

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Privatisation’ is closed to new replies.

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