BU111 Chapter Notes - Chapter 4: Environment And Climate Change Canada, Unemployment Benefits, Legal Personality
Friday, November 28, 2014
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Political Context
How Government Influences Business
- as a customer: government buys thousands of different products and services from business
firms (i.e. office supplies, computers, battleships, helicopters)
- as a competitor: competes with business through Crown corporations, conducted by a
minister of parliament (i.e. Hydro Quebec, Canada Post)
- as a regulator: protecting competition, protecting consumers, achieving social goals,
protecting the environment
PROMOTING COMPETITION
- regulates business activity to ensure healthy competition
- with these restrictions a large company with vast resources could cut its prices and drive
smaller firms out of the market
- competition act: list of prohibited variety of practices
PROTECTING CUSTOMERS
- Consumer and Corporate Affairs Canada has administrated many programs that protect
customers
- tobacco act (prohibits cigarette advertising), consumer and packaging labelling (stipulates
labelling requirements), food and drug act (prohibits the sale of food that contains any
poisonous or harmful substances)
ACHIEVING SOCIAL GOALS
- universal access to healthcare, safe workplaces, employment insurance, and decent
pensions
- all these goals require the interaction of businesses with the Canadian government
PROTECTING THE ENVIRONMENT
- Canada Water Act (controls water quality in fresh and marine waters), Fisheries Act (controls
the discharge of any harmful substances into water), Environmental Contaminants Act
(establishes regulations for airborne substances that are a danger to human health or enviro)
- as a taxation agent: revenue taxes (i.e. income taxes) provide revenue to fund various
services and programs
- progressive revenue taxes are levied at a higher rate on higher-income tax payers
- regressive revenue taxes (i.e. sales tax) are levied at the same rate regardless of the persons
income
- restrictive taxes (i.e. taxes on alcohol, tobacco, and gasoline) are levied partially for revenue,
but also because legislation believes the products should be controlled
- as a provider of incentives and financial assistance: incentive programs that attempt to
stimulate economic development
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Friday, November 28, 2014
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- industry Canada offers many services to help small businesses
- The Canada Business Program provides info on government programs, services, and
regulations in order to improve the start-up and survival rates of businesses
- Statistics Canada provides data and analysis on almost every aspect of society
- municipal tax rebates for companies that locate in certain areas
- assistance programs
- remission of tariffs on certain advanced technology production equipment
- as a provider of essential services: federal government provides highways, postal service,
minting of money, armed forces
- provincial and municipal governments provide streets, sewage and sanitation systems, police
and fire departments, utilities, hospitals, and education
How Business Influence Government
- businesses try to influence the government through the use of lobbyists, trade associations,
and advertising
- lobbyists: a person hired by a company or industry to represent that company’s interests
with government officials
- lobbyists must register with the Commissioner of Lobbying so it is clear which individuals are
being paid for their lobbying activity
- employees and owners of small businesses that cannot afford lobbyists join trade
associations: acts as an industry lobby to influence legislation
- corporations can indirectly influence voter
- ex. advertising campaigns designed to get people to demand the passage or rejection of a
particular bill
Forms of Business Ownership
- sole proprietorship: business owned and operated by one person
- legally, your business is considered an extension of yourself and not a separate legal entity
- ADVANTAGES: freedom
- answer to no one but themselves, dont share ownership
- easy to form, if you operate the business under your own name you dont even need to
register to start operating
- simplicity of legal set-up procedures
- tax benefits—> business and proprietor are legally one, tax losses can be deducted from
income the person earns from personal sources
- DISADVANTAGES: unlimited liability
- person is personally liable for all debts incurred
- bills must be paid out of the owners pocket
- lack of continuity, proprietorship legally dissolves when the owner dies
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BU111 Full Course Notes
Verified Note
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Document Summary
As a customer: government buys thousands of different products and services from business firms (i. e. office supplies, computers, battleships, helicopters) As a competitor: competes with business through crown corporations, conducted by a minister of parliament (i. e. hydro quebec, canada post) As a regulator: protecting competition, protecting consumers, achieving social goals, protecting the environment. Regulates business activity to ensure healthy competition. With these restrictions a large company with vast resources could cut its prices and drive smaller firms out of the market. Competition act: list of prohibited variety of practices. Consumer and corporate affairs canada has administrated many programs that protect customers. Tobacco act (prohibits cigarette advertising), consumer and packaging labelling (stipulates labelling requirements), food and drug act (prohibits the sale of food that contains any poisonous or harmful substances) Universal access to healthcare, safe workplaces, employment insurance, and decent pensions. All these goals require the interaction of businesses with the canadian government.
