Observation

Most candidates who attempted this question did not know the reasons for privatization. Others could not state the difference between hire purchase and deferred payment. 

The expected responses to the question include:

(a) Reasons for Privatization

1. To reduce government expenditure on subsidies.
2. To generate revenue from government businesses sold.
3. To open up an industry to competition by selling government shares in the      business.
4. To improve efficiency in the line of business that has been privatised.
5. To reduce the burden of government in the area of underutilisation of      resources/remove unproductive enterprise from the economy.
6. To comply with directives from international lenders (IMF, World Bank).
7. To encourage individuals participate in economic activities through ownership of      enterprise.   

Differences between Hire Purchase and Deferred Payment