Textbook Notes (363,419)
Canada (158,365)
York University (12,359)
ADMS 1000 (298)
Chapter 7

Chapter 7 the political context.docx

4 Pages
Unlock Document

York University
Administrative Studies
ADMS 1000
Eytan Lasry

Chapter 7: The political Context CANADIAN BUSINESS ENTERPRISE: FUNDAMENTAL FEAUTURES -government=critical role in Canadian economy -Canadian economic system=mixed system -Business Enterprise system determines: 1. What goods/services are produced/distributed to society? 2. How goods/services are produced/distributed to society -Capitalism is an economic system, and it is based on the following fundamental features: 1. Rights of the individual: individual who takes precedence in society; individuals have every right to pursue their own self-interest. But in Canada the practice that the individual is the most important element in society is not representative. There are limits, Gov. Regulations. 2. Rights of private property: individuals have the right to own land, labour and capital. 3. Competition: Advocates competition, ensures businesses provide at a fair cost 4. The role of government: minimal government interference. ‘Laissez faire let people do as they choose’ -Communism: government is responsible for the allocation of society’s resources. GOVERNMENT AS GUARDIAN OF SOCIETY: The Tax Collector Role: 2 forms: Revenue taxes and regulatory taxes. Revenue tax: collects money to help fund government services and programs. Includes: individual taxes, corporate income tax, property tax, sales tax. Individual Income tax: levied on the incomes or net profits individuals, partnerships, sole trader. Largest source of revenue for government. Corporate Income tax: Second largest source for federal government. They are taxed on their net profit at a rate (federal and provincial). Sales tax: paid through retail stores. GST-The Goods and Service Tax. Value added tax, paid at every step of the manufacturing process, levied on manufactured goods. Property tax: largest fund for municipal government. Used to fund municipal government operating costs and government. Restrictive/Regulatory taxes: aimed at controlling products/services. Excise taxes and tariffs. Excise taxes: levied on products that the government desires to restrict, sometimes deemed to be harmful. The Business Owner Role: Crown Corporations Crown Corporation: a public enterprise or organization that is accountable to the parliament through a minister. Can be provincial or federal.LCBO-provincial.Established for following reasons:  To implement public policy, includes protecting national interests.  Protect vital to the economy industries  Provide special services that cannot be provided by private businesses  To nationalize ‘natural monopolies’-electricity generation and distribution The Regulator Role: Government economic regulation: the imposition of constraints that are backed by government authority, they are intended to change economic behavior in the private sector. Regulation on consumer protection, environmental protection, nature of competition. Imperfect Competition: Ideal for consumers is perfect competition. Perfect competition: when there are an optimal number of competitors in a given industry, to ensure fair pricing and distribution of goods and services at highest level of quality. Presents optimal combination of desired g and s by consumers. Imperfect competition: fewer than optimal number of competitors, since less number of competitors there is less pressure on businesses to offer low price and high quality. Inefficient business will result. The public interest: Government objective is to protect public interest. Created a competition policy, to control nature of competition. – intends to stimulate open competition, eliminate restrictive business practices, encouraging maximum production, distribution and employment. GOVERNMWNT AS GUARDIAN OF THE
More Less

Related notes for ADMS 1000

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.