Paper 2 · Forms of Enterprise
The existing managers of a state enterprise acquire ownership of it. This is known as
Aa trade sale
Bnationalisation
Ca management buyout by the directors
Da public flotation of its shares
Explanation: In a management buyout the people already running the enterprise raise the finance to purchase it, usually combining their own money with bank debt. They know the business well, which lowers the risk to lenders, and nationalisation is the opposite move, from private to state hands.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Specimen Paper, Q2