When a company has gone from being a public company to a company that is privately owned and their objective is to make a profit.
Move from the public sector to the private sector.
Public sector-
- services are available to everyone
- owned and run by the government and profits go to the government
COP
Control- government
Ownership- government
Profits- government
Private sector-
- objective to make a profit
COP
Control- private individuals- the owners/ board of directors
Ownership- private individuals
Profits- owners
Arguments for privatisation:
- more motivation to suceed and improve by the objective of making a profit
- make own decisions not affected by government- governments don't think long term
- make more efficient- have the risk of failure- will cut down on things they don't need
Arguments against privatisation:
- profit is bad- too much emphasis on making a profit
- equality- not all can afford it
- monopolies cause high prices
- more focused on customers and workers
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