chapter 4

Question 1

Government activities that affect businesses: the big 7
GLCTFP

Answer 1

Crown corporations,
laws and regulations,
taxation
financial policies
government expenditures
purchasing policies

Question 2

Crown corporations:

Answer 2

created to provide services that we don’t have like AirCanada, and companies owned by the government such as CBC Canadian broadcasting company. Quebec has the Quebec Deposit and Investment Fund which is parallel to the Canadian pension plan.

Question 3

laws and regulations: BNA

Answer 3

The BNA Act now known as the Constitution Act allows governments to make laws in Canada.

the Bank of Canada, taxation, government expenditures, purchasing policies, and services.
- Over time more regulations have been made, limiting business for the health and safety of the Canadian society, such as the Food and Drugs Act, Hazardous Products Act, Textile Labelling Act, and Personal Information Protection Act.

Question 4

Taxation and financial policy

Answer 4

Taxation
how government redistributes wealth, sometimes out taxes on goods to rescue consumption.

Fiscal policy
is the government’s effort to keep the economy stable by increasing or decreasing taxes. Taxes may be lowered to stimulate the economy when it is weak.

Question 5

Government expenditures

Answer 5

if government spending exceeds that collected in taxes that is called a deficit national debt is the accumulation of these debts over time. A surplus is an excess of revenues over expenditures, governments transfer money to education, old-age pension, welfare, employment insurance, and child care

Equalization transfer payments
bridge the gap between provinces and territories in the country.

Question 6

Purchasing policies

Answer 6

governments use purchasing power to benefit Canadians and the govt has departments that provide services to businesses.