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# There is strong lobbying for privatization of governmental

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Manager
Joined: 12 Nov 2011
Posts: 129

Kudos [?]: 33 [1], given: 24

There is strong lobbying for privatization of governmental [#permalink]

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15 Apr 2012, 07:00
1
KUDOS
00:00

Difficulty:

5% (low)

Question Stats:

84% (01:07) correct 16% (01:33) wrong based on 113 sessions

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There is strong lobbying for privatization of governmental organizations. The reason given is that it would improve the efficiency of the workers and do away with corruption.
Which of the following could be cited as an argument against the above proposal?

• Private groups might not be able to formulate policies acceptable to everyone.
• Private groups might pay more attention to their private gains rather than to the needs of the public.
• Private groups might not have enough funds, and so might sell shares of the organization to raise funds.
• There will be a feeling of competition among various private groups.
• The private groups might close down some of the loss making bodies.

plz explain
[Reveal] Spoiler: OA

Kudos [?]: 33 [1], given: 24

Manager
Joined: 14 Dec 2010
Posts: 202

Kudos [?]: 41 [0], given: 5

Location: India
Concentration: Technology, Entrepreneurship
GMAT 1: 680 Q44 V39
Re: There is strong lobbying for privatization of governmental [#permalink]

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15 Apr 2012, 10:58
Clearly B is the answer. The conclusion of the argument is " Privatization would improve the efficiency of the workers and do away with corruption."

The assumption here is that Privatization will not cause more harm to these organizations.
Answer B states that the draw back of Privatization could be they might pay more attention to their private gains rather than to the needs of the public since the privatized companies were originally government entities.

Kudos [?]: 41 [0], given: 5

Manager
Joined: 12 Nov 2011
Posts: 129

Kudos [?]: 33 [0], given: 24

Re: There is strong lobbying for privatization of governmental [#permalink]

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15 Apr 2012, 12:00
naveenhv wrote:
Clearly B is the answer. The conclusion of the argument is " Privatization would improve the efficiency of the workers and do away with corruption."

The assumption here is that Privatization will not cause more harm to these organizations.
Answer B states that the draw back of Privatization could be they might pay more attention to their private gains rather than to the needs of the public since the privatized companies were originally government entities.

still not clear
what's wrong in paying attention to their privat gains? IMO the meaning of every privatization - the efficency through privat interest of owner to receive profit.

I choose E
My reasoning
Passage states that privatization is good for government organisation and as a result fo contry itself
E states that there might be closings and as a result - firing of people => harm to contry

so I don't see any negative in privat interest of owner

any thoughts?

Kudos [?]: 33 [0], given: 24

Manager
Joined: 14 Dec 2010
Posts: 202

Kudos [?]: 41 [1], given: 5

Location: India
Concentration: Technology, Entrepreneurship
GMAT 1: 680 Q44 V39
Re: There is strong lobbying for privatization of governmental [#permalink]

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16 Apr 2012, 05:59
1
KUDOS
If the Private organizations close down some of the loss making bodies, whatever is remaining, are profit making bodies. So these organizations will be more efficient now that they were before. So E actually strengthens the argument for Privatization.

I hope this is clear.

Kudos [?]: 41 [1], given: 5

Re: There is strong lobbying for privatization of governmental   [#permalink] 16 Apr 2012, 05:59
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