Description: Ontario is considering changes to its marijuana sales model. In the past fiscal year, the Crown corporation handling sales of the newly legalized product lost $42 million. Ontario is not the only province to lose money. New Brunswick has also recorded millions in losses.
Date: September 27, 2019
1) Are you surprised to see that governments have lost money on sales of marijuana?
2) What do you think has caused this type of bad result?
3) In chapter five of Wiley’s Financial Accounting: Tools for Business Decision-Making , we can read about the differences between the cycles of a service business versus a business which sells a product. What is the big difference between the two cycles?