Correct option is D
The correct answer is (d) reduced competition.
· The privatisation of state-owned enterprises generally aims to enhance efficiency and competitiveness in the market.
· While the other options present common advantages associated with privatisation, reduced competition is actually a disadvantage.
· In a privatised environment, the intention is often to foster competition among private players, which can lead to better services and products for consumers.
· However, if privatisation leads to monopolistic practices or reduced competition in certain sectors, it can have negative implications for consumers and the market as a whole.
Additional Information:
· Additional source of revenue for the government: Privatisation can generate immediate revenue through the sale of public enterprises, contributing to the government's finances.
· Low interference of political motives: Private enterprises are typically less influenced by political considerations compared to public enterprises, allowing for more business-oriented decision-making.
· Overall improved performance: Private companies often have greater flexibility and accountability, leading to improved operational performance and customer service.