1. GOVERNMENT INFLUENCE Chapter 5: What Makes a Successful Business Bus. Ed 9 Ch. 5 Notes Pg. 102 - 106

2. Agenda Taxes Control of Distribution – Marketing Boards – Antitrust Legislation – Money Supply – Licensing and Permits Other Regulations – Health & Safety Regulation – Quality Control – Ethical Business Practices

3. Taxes Why do we pay taxes? – Government services such as education, health care, police and fire protection, highways, and the court system. How do we generate money to pay for government services? – HST or GST & PST – Income tax – Gas, liquor, and tobacco taxes – Duty taxes

4. Control of Distribution Government can play a dual role in the distribution of products – Wants to control the supply of a product – Wants to encourage free market and opposes control of supply

5. Marketing Boards A government organization that controls the manufacturing, processing, distribution, and supply of a product or service

6. Marketing Boards Milk marketing boards control the sale and distribution of dairy products in Canada o Dairy farmers in Canada must belong to the milk marketing board. o You cannot produce milk for sale in Canada unless the farm has been approved by the board.

7. Ontario’s Milk Marketing Board – Milk Commercial

8. Antitrust Legislation For products other than agricultural, the government wants no control on the supply of any product or service by any businesses

9. Money Supply The Bank of Canada – Established in 1934 – Canada’s central bank – Regulates the money supply in Canada Sets cost of borrowing for major banks Controls amount of money in circulation

10. Licensing and Permits Owners of some businesses have to apply and pay for licensing and permits in order to operate. – For example: businesses that work with food, liquor, drugs, tobacco, lodging, transportation, entertainment, and firearms.

11. Other Regulations Health & Safety – Food and Drug Act requires extensive testing – Regulations also exist for many other products Quality Control – Regulations are put in place for products and services to meet a set standard to ensure minimum standards and consumer confidence

12. Other Regulations Ethical Business Practices – The principles of morality and proper conduct that people use to guide their behaviour The Competition Act states that the following are prohibited – False or misleading ads – Advertising a bargain price for merchandise that is unavailable in a reasonable quantity – Placing two different prices on a product and selling it to the consumer at the higher price

13. Activity What is GST & PST? How is the re-introduction of PST in 2013 going to affect BC’s economy?

14. Assignment Questions List several ways in which governments control businesses? What is another product in BC that is controlled by a marketing board? Select one of the acts listed on page 104 in the blue box. Research the act and report on how it affects local business.