AFM131 Chapter Notes - Chapter 4: Canadian Wheat Board, Hydro One, Air Canada

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Robert Sproule

Document Summary

Chapter 4 the role of government in business notes. There are 6 different activities that governments use to affect businesses that can be condensed into categories: crown corporations laws and regulations b) c) taxation and financial policies, government expenditures, purchasing policies f) services. These corporations are companies that are owned by the government. (ex: canada. The purpose of their creation was to bail out a major industry in trouble. Each province in canada has some sort of crown corporation that they own. (ex: Ontario owns hydro one, an electricity and heat supplier company) Governments can decide to sell its crown corporations. This process is called privatization. (ex: air canada went private, formerly a crown corporation) One of the laws and regulations passed by the government was the competition. Act which restricts any mergers of large corporations if they reduce competition.