COMM101 Study Guide - Final Guide: Limited Partnership, Sole Proprietorship, Asia-Pacific
1 Feb 2015
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Learning objectives: understand the impact that political-legal factors have on companies/industries, explain how government influences business link these roles to porter"s five. Elements: laws, regulations, taxes, trade agreements or conditions. Government can create incentives, constraints, or support/bail out when needed. Affects uncertainty, risk, and constraints/costs faced by firm. How government influences business: customer: buys products & services. I. e. national defense, buildings, computers office supplies: competitor: canada post competes with fedex, public transportation, private transport, cbc with all other providers, regulator/law maker. Regulates business activity; influences technology standards crtc. The government is a customer; some firms rely on the government to survive (ex. national defense, infrastructure, office suppliers, computers, phones). Collected by all three levels of government. Progressive (income tax: more you make, more you pay: regressive (sales tax: lower income bracket will pay more, restrictive (tobacco/alcohol taxes, purpose to restrict the purchase) Subsidies, tax breaks, support services for small and large businesses, research funding.
