Textbook Notes (381,290)
CA (168,463)
York (13,287)
ADMS (1,672)
ADMS 1000 (318)
Chapter 8

Chapter 8 Notes

5 Pages
121 Views

Department
Administrative Studies
Course Code
ADMS 1000
Professor
Eytan Lasry

This preview shows pages 1-2. Sign up to view the full 5 pages of the document.
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 thats 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
Canadas 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 let people do as they choosewhich suggest little
government interference. Akafree enterprise system
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
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 couldnt be made available by private business
They nationalize industries that were considered to be natural monopolies
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, theres 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

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
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 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 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 Canada’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 “let people do as they choose” which suggest little government interference. Aka “free enterprise system” 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 nd Corporate income taxes: provides thela 2rgest 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 Restricted/Regulatory Taxes2 : 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 couldn’t be made available by private business They nationalize industries that were considered to be “natural monopolies” 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, there’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 This is done through commissions, tribunals, agencies &
More Less
Unlock Document


Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

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


OR

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.


Submit