Paper 2 · Forms of Enterprise
A risk of a strict indigenisation policy is that it may
Areduce the number of citizens owning businesses
Bprevent the state from collecting company tax
Cdeter foreign direct investment into the country
Dincrease foreign ownership of the whole mining sector
Explanation: An investor who must surrender a controlling share may put the money elsewhere, so the capital, technology and skills that came with it are lost. New local owners may also lack the capital or expertise to run the assets as productively, which is why the terms and pace matter.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Specimen Paper, Q2