Question

BUSINESS ORGANIZATION A ND FINANCE Business Enterprise in the Free-Market System Large multinational corporations (companies with business ventures in various countries) have emerged as one of the most creative and powerful interna- tional institutions of the 20th century. In this chapter, we shall investigate corporations and other ways of organizing and financing business enterprises in Canada. Our investigation begins with this political cartoon. Although some critics suggest that multinational corporations use their power and size to secure greater returns on their invest- ments, others claim that their self interest is no different from the behaviour of most other forms of business enterprise within the free-market system. ChApteR Goals QUESTIONS 1. Study the cartoon. What is the cartoonist saying about the ethics of multinational corporations? 2 Why is the US flag seen flying in the background? 3. How are the directors of this corporation portrayed? 4 Do you know of any multinational corporations? In what businesses are they engaged? What do you By the end of this chapter, you will be a compare the different forms of busi organization and finance (private a public) in Canada, investigate the evolution and grow Canadian industry and the increas centration of corporate power in explain the function of securities commodities markets develop pattern identification/in know about their corporate image? tion skills.

Answer 1

Solution

1.The author says that even though the MNC have a defined,proper corporate ethics which are in-line with the local government's laws,they are not different from companies in every free-market structure,trying to maximize their returns.

2.The U.S flag in the background depicts that the multi-national companies are adhering / will always want to adhere to the federal laws of the United States as it is operating in it.

3.The directors are portrayed as ethical and sincere and strictly adhere to the law of the land (here the U.S) and abide to the laws.

4.Example : Infosys which is an Indian company and also operates in the U.S.They are into Information Technology.They are ethical and have a very good corporate culture and also follow good corporate ethics.Another Example is Unilver Ltd which is a British Company operating in India under the name Hindustan Unilever Ltd., which strictly follows the laws of India.

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