Paper 1 · November 2020 · Forms of Enterprise
A government sells the shares of a state owned airline to private investors through the stock exchange. This form of privatisation is known as
Apublic flotation
Ba management buy-out
Ccontracting out of a service
Dderegulation of the market
Explanation
In a flotation the state offers the enterprise's shares for sale, so ownership passes to whoever buys them. A buy-out sells the firm to its own managers, and deregulation only removes the barriers that kept rivals out, leaving ownership where it was.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Nov 2020, Q2