Privatization Is ________

question 31

Multiple Choice

Privatization is ________.

• A) the transfer of ownership of resources from the public to the private sector
• B) a government's regulation of business activities outside its borders
• C) nationalization without compensation
• D) nationalization with compensation

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.

Accounting Rate of Return

This measures the return on investment by dividing the average annual profit by the initial investment cost, often used for evaluating the profitability of potential investments.

Payback Period

The amount of time it takes for an investment to generate cash flows sufficient to recoup the initial investment cost.

Straight-Line Depreciation

Straight-Line Depreciation is a method of allocating the cost of a tangible asset over its useful life in equal annual amounts, reflecting a constant rate of depreciation.