| List the 7 government activities that affect business | - Crown Corporations
- Laws and Regulations
- The Bank of Canada
- Taxation and Financial Policies
- Government Expenditures
- Purchasing Policies
- Services |
| Define Crown Corporation | companies that are owned by the federal or provincial government. |
| Crown Corporations are set up to | 1. Provide services that were not being provided by business. E.g. Air Canada in 1930s
2. Bail out major industries in trouble. E.g. Canadian National Railroad (CNR) in 1919
3. Provide special services not otherwise available; e.g., Bank of Canada |
| Define Privatization | the process of governments selling Crown corporations |
| Define Deregulation | government withdrawal of certain laws and regulations that seem to hinder competition. Therefore the marketplace becomes more competitive |
| Define Marketing boards | - organizations that control the supply or pricing of certain agricultural products. E.g. milk production
- Marketing boards promote stability in volatile areas of the economy, e.g., farming |
| What is the Bank of Canada(BoC) and what does it do ? | The Bank of Canada (BoC), a federal Crown corporation, is Canada’s central bank. As a financial institution, it provides banking services on behalf of the federal government; however, it does not offer banking services to the public |
| Define Monetary Policy | is the management of the money supply and interest rates |
| Define Money Supply | The money supply is the amount of money the BoC makes available for people to buy goods and services. |
| Interest Rates | Reduce interest rates to stimulate the economy and increase interest rates slow down the economy to control inflation |
| The role of taxes | taxes (revenue, income, and property) are used by government to pay for services, pay down debt, and fund government operations and programs |
| Role of sin taxes | sin taxes are used to discourage tax payers from using certain products; e.g., cigarettes. |
| role of tax credits | Tax credits are given to companies to encourage growth |
| Define Fiscal Policy | the federal government’s effort to keep the economy stable by increasing or decreasing taxes or government spending |
| Define Deficit | occurs when the government spends over and above the amount it gathers in taxes over a specific period of time (namely a fiscal year). |
| Define National Debt | the accumulation of government surpluses and deficits over time. |
| Define Surplus | an excess of revenues over expenditures. |
| Define Federal Budget | - a comprehensive report that reveals government financial policies and priorities for the coming year. |
| What does a Federal Budget do ? | - shows how much revenue the government expects to collect
- any changes in income and other taxes and whether a deficit or surplus is expected |
| Monetary Policy | - management of the money supply and the interest rates
- Controlled by BoC and it raises and lower interest rates in attempt to control the business cycles |
| Public-Private Partnership (P3s) | Merging of public and private philosophies |
| The Competition Bureau | According to competition law, a store must offer regular pricing for a substantial period of time, usually 50% when it comes to low price. |
| Federal government responsibilities include | - Trade regulations / - Immigration
- Incorporation of federal companies / -Criminal law
- Taxation (direct & indirect) / -Fisheries
- Banking and $ system
- DnD
- Hospital insurance
- Public debt and property
- Unemployment |
| Provincial government responsibilities include | •natural resources within their boundaries
•direct taxation for provincial purposes
•incorporation of provincial companies
•licensing for revenue purposes
•the administration of justice
•health and social services
•municipal affairs•property law•labour law
•education •regulation of provincial trade and commerce |
| Municipal government responsibilities include | - consumer protection
- zoning requirements
- business regulations, licensing
- taxation
- essential and other services |
| Industrial Policy | A comprehensive, coordinated government plan to guide and revitalize the economy |
