AFM131 Lecture 5: Module 2 - Role of Government in Business

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Tracy Hilpert

Document Summary

Module 2: role of government in business (cid:862)i(cid:374) the (cid:374)e(cid:449)s(cid:863): Companies have to: obtain your consent, provide identification and provide an unsubscribe mechanism: difficult to enforce for spammers outside canada. 6 categories governments affect business: crown corporations, laws and regulations, tax and financial policies, government expenditures, purchasing policies, services. Crown corporations: government owned companies that sometimes compete with profit businesses. Laws and regulations: these cover a wide range, from taxation and consumer protection to environmental controls, working conditions, and labour management relations. Taxation and financial policies: all levels of government collect taxes-income taxes, gst/hst, provincial sales taxes. Taxation is also fined tuned by government to achieve certain goals or to give effect to certain policies. Government expenditures: governments pay out billions of dollars to canadians. All levels of government provide a host of direct and indirect packages (tax reductions, grants, loans and loan guarantees) as incentives to achieve certain goods.