WAEC Commerce 2017 Theory — Question 2

Model answer

Advantages of privatization: - privatisation promotes efficiency in the corporation - it reduces waste of government resources - it also improves service quality delivery since it is profit oriented Disadvantages of privatization: - it is profit oriented, thus, may lead to exploitation of the populace - it may lead to monopoly if it is just one firm - at times, it could short term based because if the investors have realised their money, they may run it non-challantly - tax payers lose potential dividend