ADMS 1000 Chapter Notes - Chapter 8: Canadian National Railway, The Public Interest, Canadian Business

47 views5 pages
Readings- Chapter 8
The Canadian Business Enterprise System: Fundamental Features
๎€Government plays a critical role in Canadian economy
๎€The business enterprise system determines how or by whom decisions are made
๎€Capitalism: a type of economic system thatโ€™s based on a number of fundamental principles
including:
๎€Rights of the Individual: individuals take precedence as apposed to institutions/ the overall
society. Individuals have every right to pursue their own self-interest, however there are
limits. Government regulations enforce rules that affect how business owners conduct their
affairs. Ie, government guidelines regarding job candidate selection criteria for who is hired
for a job
๎€Rights of Private Property: individuals have the right to own land, labour & capital. Because
Canadaโ€™s wealth is not evenly distributed, government comes into play. Ie, by taxation.
๎€Competition: sufficient competition among business enterprises will ensure that business
provides the goods & services required by society at a fair cost.
๎€The Role of Government: laissez-faire ๎€ โ€œlet people do as they chooseโ€ which suggest little
government interference. Aka โ€œfree enterprise systemโ€
The Tax Collector Role
๎€Can be at a federal, provincial or local level
๎€Revenue taxes: collecting money to help fund government services; include individual taxes,
corporate incomes taxes, property taxes & sales tax
๎€Individual income taxes: based on the income of individuals or on the net profits of
partnerships. They provide the largest source of revenue for the federal & provincial
governments
๎€Corporate income taxes: provides the 2
nd largest source of revenue; corporations are taxed on
their net profit at a combined federal & provincial rate that can vary among provinces & can
change on government policies
๎€Sales taxes: important source for most provinces. This tax is paid through retail stores, when
goods are sold.
๎€The GST came into effect in 1991 which provides funds to the federal government
๎€Property taxes: largest revenue for municipal governments; the revenue gained from this is
used to fund the operating costs of the municipal government & services they generate
www.notesolution.com
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in
๎€Restricted/Regulatory Taxes: 2 MAIN FORMS
๎€Excise taxes: applied to goods or services that the government desires to restrict that have
potential harm (tobacco)
๎€Tariffs
The Business Owner Role: Crown Corporations
๎€Crown corporation: an organization accountable through a minister to parliament for its
operations
๎€Can be federal (ie, Canada Post) or provincial (ie, Liquor Control Board of Ontario LCBO)
๎€They implement public policy that includes protecting or safeguarding national interests
๎€They protect industries deemed to be vital to the economy ie, Canadian national railway
๎€They provide special services that couldnโ€™t be made available by private business
๎€They nationalize industries that were considered to be โ€œnatural monopoliesโ€
๎€Each crown corporation is owned by the Crown & is managed by a board of directors
๎€By late 1980s, there were 53 parents Crown corporations at the federal level; employing
approximately 180000 people, maintaining assets of around $60 billion
The Regulator Role
๎€Wide scope for government regulation in business activity
Imperfect Competition
๎€The need for government involvement
๎€Fewer competitors, the more secure a business becomes
๎€Imperfect competitions occurs when fewer than the optimal number of competitors exist
๎€Where there are an insufficient amount of competitors, thereโ€™s less pressure on businesses to
offer the best good/service at competitive prices
๎€Inefficient businesses will remain, & consumers will be forced to accept products/services at
prices given by the businesses
๎€Society is offered fewer goods/services citizens want
The Public Interest
๎€Main objective of government regulations is to protect the public interest
www.notesolution.com
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in

Document Summary

government plays a critical role in canadian economy. The business enterprise system determines how or by whom decisions are made. capitalism: a type of economic system that"s based on a number of fundamental principles including: rights of the individual: individuals take precedence as apposed to institutions/ the overall society. Individuals have every r ight to pursue their own self-interest, however there are limits. Government regulations enforce rules that affect how business owners conduct their affairs. Ie, government guidelines regarding job candidate selection criteria for who is hired for a job. rights of private property: individuals have the r ight to own land, labour & capital. Canada"s wealth is not evenly distributed, government comes into play. competition: sufficient competition among business enterprises will ensure that business provides the goods & services required by society at a fair cost. The role of government: laissez-faire let people do as they choose which suggest little government interference.

Get access

Grade+20% OFF
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers