Explain Both Sides of the Issue of the Privatization of Government

question 24

Essay

Explain both sides of the issue of the privatization of government. Provide examples of ways privatization might make government more efficient and some of the unintended consequences of privatization.

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Definitions:

Dividend

A payment made by a corporation to its shareholders, usually in the form of cash or stock, from its earnings.

Loss

The reduction in the financial valuation of an investment, or when expenses exceed the income or total amount invested.

Net Capital Spending

The total spending on fixed assets minus the proceeds from the sale of fixed assets.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of the issuing corporation's stock, rather than cash.