Observation

The question was avoided by most candidates. They may have avoided the question because it is an application question. The once who attempted it could not differentiate between the options. 

The expected responses to the question include:                                               108

1. Difference between privatisation and commercialization

1. Advantages of privatization
2. Leads to greater efficiency due to pressure from shareholders to earn dividend.
3. Consumers will benefit from greater choice of goods and better services.
4. Services also become cheaper as a result of competition.
5. It gives opportunity to members of the public to become co-owners of the transportation business.
6. It increases government revenue through the sales of government interest to private individuals.
7. It leads to increased competition as more firms are allowed to participate in the business.
8. It reduces political interference in the business.
9. It leads to tapping of foreign technology.

      Advantages of commercialization

1. It reduces spending by government on firms that are less viable.
2. It increases revenue for government as firms become profit oriented.
3. It makes for greater efficiency of firms in the provision of services.
4. Consumers have a range of choice of services.
5. It creates job opportunities.