ADMS 1000 Lecture Notes - Lecture 9: Natural Monopoly, Corporate Welfare, Layoff

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Peter Modir

Document Summary

Three key roles the government plays in relation to business are the tax collector, the business owner, or the regulator. Crown corporation: a federal or provincial-run government agency, also called public enterprise, that is accountable to parliament for its operation through a minister. Examples include canada post (federal) and lcbo (provincial). Governments establish crown corporations for a number of reasons: (1) to implement public policy that includes protecting national interests: Crown corporations such as air canada and petro-canada helped facilitate government policy in the area of cross-canada transportation. (2) to protect vital industries: Air canada was established after observing that no private business was willing or able to provide domestic air services. Canada post provides affordable daily delivery of mail but struggles to remain profitable. (4) to nationalize natural monopolies" : For example, electricity, water supply, sewage treatment plants, and road construction.