Which of the Following Actions of the Government Indicates the Privatization

question 17

Multiple Choice

Which of the following actions of the government indicates the privatization of an industry?

• A) allowing private businesses to operate in an industry that was previously operated by the government
• B) discouraging private business to operate in an industry that is critical for the growth of the economy
• C) acquiring the market leader to gain control of the industry and its resources
• D) imposing taxes on scarce raw materials to discourage unfair pricing by its suppliers
• E) imposing regulations on multinational businesses to protect local businesses

---

Definitions:

Credit To

An accounting entry that increases the balance of liabilities, equity, or revenue accounts, or decreases the balance of assets or expense accounts.

Authorized Stock

Authorized Stock refers to the maximum number of shares a corporation is legally allowed to issue, as specified in its articles of incorporation.

Formal Accounting Entry

A documented record in accounting that notes all the details of a financial transaction within an organization’s financial system.

Bylaws

The set of rules or guidelines that govern the internal management and regulations of an organization or corporation.