Paper 2 · Forms of Enterprise
Selling shares in a state-owned enterprise to the general public on a stock exchange is which form of privatisation?
Aa trade sale
Bcontracting out
Ca management buyout by the directors
Da public share flotation
Explanation: A flotation offers the shares widely, so ownership is spread among many private investors and the state receives the proceeds. A trade sale transfers the enterprise to a single buyer, a buyout transfers it to the existing managers, and contracting out leaves ownership with the state.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Specimen Paper, Q2