What do you mean by Privatization?

Answer 1

In business or the public sector it means taking a corporation or enterprise that may be publicly traded with share holders and downsizing public offerings making a business a privately held company either by sole party or restricted group. So if a widely held company in mass shareholders seek to consolidate ownership to a limited few this is usually done via stockholder buy out options.

In federal or public sector operations such as the government it usually means government downsizing. This is done to eliminate large cumbersome government operations in an effort to eliminate same multiple operations conducting very similar or same operations or work ineffectively as one operation restricts another increasing costs- it locks out lesser repeating government operations to stream line to one operational body.

Privatisation is a self imposed downsizing the purpose a tool to garner more austerity planning controls without dispute via public interest groups(shareholders) that have legitimate rights- to any policies or management implementations - this eliminates voting parties that may object to lack of dividends for continued operations usage or in an in cases where expansion may harbor claims of monopolizing interests at bay as chartered with publicly traded companies. It's main objective is to reduce or thwart opposition or slow progress to garner more productive or efficient operations.

The other method of conducting this is absorbing entire department operations or the complete buy out of a company and merger acquisitions - with a public held company negotiations to buy out public company for it's product and service holdings requires approval via the SEC and other regulatory agencies - for a government consolidation of a department operations to be absorbed or spear headed by a larger government body of operations pending level may include congressional approval as well as signing via an executive branch. These methods are to ensure the prevention of monopolization.

Answer 2

Privatization is the transfer of assets from the public sector to the private sector. This is done, in most cases, to increase efficiency.

...However, the act of privatising does not guarantee an increase in efficiency, and so the proposition that it will automatically and certainly increase efficiency as is often argued is false.

The answer therefore; privatisation can simply mean a transfer of assets from the public sector to the private sector.

Should a private company invest in social care for a nations citizens for example, it is in the companies interest to provide the best care possible to increase profits.

But, this not always the case, and you could see unskilled workers employed to do a job that they are untrained for, and care could suffer as a result. This could be due to the companies unwilliness to pay skilled wages for financial reasons, in the aim of cutting expenses.

Therefore, the quality of services or goods is not defined by whether it is publicly owned or privately owned. Equally, governments have less control over the way in which privately owned assets or businesses are run.

Answer 3

It is when public sector changes to private sector