Posts Tagged ‘Crown Corporation’

New Terms

Tuesday, August 31st, 2010


Sole Proprietorship - A business firm owned (and usually managed) by a single person who bears full legal liability for the firms debts.

Partnership – A business firm owned by two or more persons, with each person bearing full legal liability for the firm’s debts.

Corporation – A business firm which is a separate legal entity from its owners, or shareholders, each of whose liability is limited to the amount of his or her investment in the firm.

Conglomerate – A group of seemingly unrelated types of corporations controlled in varying degrees by a central management group, through “holding companies” which own shares in those corporations.

Crown Corporation – A corporation owned by a government, being ultimately responsible, through a cabinet minister, to that government.

Proxy – A legal instrument whereby a shareholder’s right to vote at shareholder’s meetings is delegated to another person, either with or without specific instructions as to how that vote will be exercised.

Board of Directors – A group of people elected by the shareholders of a corporation to provide direction to the management of the corporation.

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More on Business Organization in Canada

Tuesday, August 24th, 2010


While government enterprises play a smaller role in the manufacturing sector, they include some well-known names, such as De Havilland Aircraft and Canadair at the federal level, and some provincial governments have acted as partners in manufacturing firms in attempts to stimulate growth and employment in some regions. Finally, in 1981, the Post Office was converted from a government department into a Crown Corporation, in the hope that its new form would reduce the political element that had been strong when it was a government department and would allow it to concentrate on improving efficiency and employee relations, so as to become more competitive with other carriers and more financially self-sufficient.

To summarize, government enterprises are “big business” in Canada, many of them being household names and major forces in the economy. The objectives of these enterprises are not only profits – some of them, such as Canadian National Railways and the Canadian Broadcasting Corporation, are intended to provide particular services throughout the country whether to do so is profitable or not, or to aid in the development of particular industries, products or regions. The matter of government enterprises has always been a controversial one, with their critics arguing that such operations tend to be very inefficient because of political interference and the absence of the profit motive, and their supporters arguing that they are an essential component of the Canadian economy, performing functions that private enterprise would not or could not. Notwithstanding this debate over the value of government enterprises, the fact is that they comprise a large part of the Canadian economy, one which has been planned to grow even further, with PetroCan to become a major force in the Canadian energy field.

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