Mark G. Yudof, president of the University of California, has approved a controversial proposal by the University of California at Los Angeles business school to make its M.B.A. program "self-supporting." Under the plan, the business school would gain more autonomy and flexibility for managing the program in return for giving up the $8 million it would otherwise receive from the state for the program. UCLA officials have argued that since that money is now a small share of operating funds, it can make up the difference -- and stands to gain more from increased autonomy. Some faculty critics have called the plan "privatization" -- a word avoided by proponents of the plan. The announcement of Yudof's approval noted conditions he placed on the concept. On issues of academic quality, the M.B.A. program remains subject to the same policies governing other professional schools in the UC system. Further, financial aid for low-income students must be provided at similar levels to those of other UC M.B.A. programs.