Privatization Quiz

Question 1A council hires a firm to collect waste but keeps public funding and service rules. What has it transferred?

Delivery of refuse removal through a paid operatorOwnership of the waste service through an asset saleRegulation of service quality through an end to public standardsFinancing of the service through a shift to private funding

Question 2A government sells a utility but retains safety and tariff rules. How should the changes be classified?

Public ownership with an end to tariff regulationPrivate ownership with continuing regulationDeregulation without a transfer of ownershipCorporatization without a private ownership claim

Question 3After a water-network sale, duplicating pipes remains costly and households lack alternative suppliers. What issue remains?

Competition created by the change of legal ownerMonopoly pricing power despite the change in ownershipA market structure determined by household tax ratesA pricing limit supplied by the purchase contract’s expiry

Question 4A treasury receives cash from selling a profitable enterprise. What belongs in assessing the transaction?

Future operating profit set by the price paid for the enterpriseThe receipt separated from the value of the asset soldThe receipt together with income forgone and liabilities transferredThe receipt counted again as profit in each later budget

Question 5A contract pays for meals delivered but omits nutritional standards. Which change addresses that omission?

A transfer of kitchen ownership in place of nutritional standardsA larger payment based on the same incomplete output measureA requirement for food quality with independent compliance checksA replacement of inspection with the supplier’s profit target

Question 6Average production cost falls after a sale, while remote users lose affordable access. What should the assessment report?

An efficiency improvement that makes the access losses costlessProduction costs measured by the subsidized household tariffConsumer welfare improving with each additional share soldEfficiency gains considered with unequal user outcomes

Question 7A public operator becomes a company, but the government retains its shares. Which description fits?

A share sale that transfers control to private investorsA concession granting a firm temporary operating rightsDeregulation removing the service’s legal obligationsCorporatization without a transfer to private shareholders

Question 8An auction has several qualified bidders with equal access to records. Why is that arrangement useful?

The highest bid measures service quality after the saleEqual records make the asset’s future income certainSeveral bids transfer regulatory duties to the buyersCompeting bids help establish the sale price of the asset

Question 9A concession requires maintenance during a fixed operating term. What distinguishes it from an outright asset sale?

The operator receives indefinite ownership of the assetThe right to operate expires at the agreed end of the termThe public authority gives up its contractual oversight roleThe expiry date releases the operator from maintenance during the term

Question 10A new owner cuts staffing and raises output per worker. Which evidence is needed to judge the broader outcome?

The reliability users experience and the burden of finding other workA satisfaction score calculated by dividing output by head countA smaller workforce requiring fewer units to be suppliedThe ownership transfer responsible for each change after the sale date

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Privatization Quiz

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