Setting Up Business in Canada
Corporations- a business considered by law to be a legal entity separate from its owners with many of the legal rights and privileges of a person; a form of business organization in which the liability of the owners is limited to their investment in the firm. It can e formed under the Canadian Business Corporations Act (federal incorporation) or under any provincial incorporation acts. The former is used is company is going to operate in more then one province, and the latter is used if it will only be in one province. Anything can be formed under this act (CBCA) except banks and certain insurance and loan companies.
Cooperatives- an organization that is formed to benefit its owners in the form of reduced prices and/or the distribution of surpluses at year-end, there are hundreds of types, but fall mainly under five categories: Consumer cooperatives- these organizations sell goods to both members and the general public (MEC) Financial cooperatives- these organizations operate much like banks, accepting deposits from members, giving loans, and providing chequing services (credit unions)
Insurance cooperatives- these organizations provide many types of insurance coverage, such as life, fire, and liability Marketing cooperatives- these organizations sell the produce of their (farm) members and also purchase inputs for the production process (seed and fertilizer) Service cooperatives- these organizations provide member with services such as recreation Employee Stock Ownership Plan (ESOP)- an arrangement whereby a corporation buys its own stock with loaned funds and holds it in trust for its employees. Employees “earn” the stock based on some condition such as sonority. Employees control the stock’s voting rights immediately, even though they may not take physical possession of the stock until specified conditions are met.
Strategic Alliances- An enterprise in which two or more persons or companies temporarily join forces to undertake a particular project. Subsidiary and Parent Corporations- Subsidiary: one that is owned by another corporation Parent: A corporation that owns a subsidiary History of Business in Canada: Early Years: Late 1400’s-ships financed by English entrepreneurs came to Newfoundland to fish for profit 1500’s- traded w/ Indians, England and Frances’s economy grew, however Canadian manufacturing was slow to develop.
The Factory System and the Industrial Revolution: Industrial Revolution- a major change in goods production that began in England in the mid-eighteenth century and was characterized by a shift to the factory system, mass production, and specialization in labour with advances in technology Factory system- a process in which all the machinery, materials, and workers required to produce a good in large quantities are brought together in one place Mass Production- the manufacture of a good of uniform quality in large quantities Specialization- the breaking down of complex operations into simple tasks that are easily learned and performed.
The Entrepreneurial Era: Late 1800’s- many wealthy people, due to size and power of some firms, other businesses were getting hurt, some decided it was more profitable to collude then to compete, so they fixed prices and divided the market, although Canadian consumers called for more regulations, In 1889, first anti-combines legislation was passed. The Production Era: The period during the early 1900’s when American businesses focused almost executively on improving productivity and manufacturing methods The Sales and Marketing Eras: Sales Era- the period during they 1930’s and 40’s when businesses focused on sales forces, advertising, and keeping products readily available.
Marketing Era- the period during the 1950’s and 60’s when businesses began to identify and meet consumer wants in order to make a profit Global Era: Last few years- technological advances in production, computer technology, information systems, communication capabilities, Buy foreign products, cut costs, increase efficiency, improve products and service quality. Variety of trends, opportunities, challenges.