The term privatization is typically used to describe:
A) firms that are purchased by their managers.
B) firms that are purchased by the government.
C) firms that are bought out by other firms.
D) government operations that are purchased by corporations and other investors.

Question

Quizplus · Accepted Answer

Privatization involves transferring government-owned or operated assets and services to private ownership and operation. This means that the government is selling its operations to corporations and other investors, who then take over its management and ownership. Therefore, option D is the most appropriate choice. Option A is incorrect since managers buying firms does not necessarily involve government-owned operations. Option B is incorrect because it refers to government ownership, which is opposite to privatization. Option C is incorrect because it refers to the merger and acquisition of private firms, which may not necessarily involve the government.

The Term Privatization Is Typically Used to Describe