Business Ownership

Brought to you by Rhaine Campbell-Heaton, Obet Gutierrez-

Lopez, Harshit Chadha, Dhairya Shah, Andres Pena, and
Jagdish Singh
Types of Ownership
Sole Proprietorship: Advantages and Disadvantages

Advantages Disadvantages
● Unlimited Personal
● Ease of Formation
Liability
● Complete Control ● Limited Access to Capital
● Direct Profits ● Limited Skills and
● Simple Taxation Expertise
● Fewer Regulations ● Limited Growth Potential
● Lack of Continuity
Partnership: Advantages and Disadvantages

Advantages Disadvantages
● Shared Responsibility ● Unlimited Liability
● More Capital and ● Shared Decision Making
Resources ● Profits Sharing
● Complementary Skills ● Dependency on
● Joint Decision Making Partners
● Tax Flexibility ● Personal Conflicts
Corporation: Advantages and Disadvantages
Advantages
● Limited Liability
● Access to Capital
● Perpetual Existence
● Transfer of Ownership
● Credibility and Prestige
Disadvantages
● Extensive Regulatory Compliance
● Potential Loss of Control
● Higher Operational Costs
●
●
Disclosure of Information
Corporate Formalities
Sizes

● How is a business defined?

○ Small - 1 to 99 paid employees
○ Medium - 100 to 499 paid employees
○ Large - 500 or more paid employees
Entrepreneurship
Entrepreneurs are innovators who start companies to create new or improved products.
Characteristics:

● Innovation. Entrepreneurship generally means offering a new product, applying a new technique or technology,
opening a new market, or developing a new form of organization for the purpose of producing or enhancing a
product.
● Running a business. A business combines resources to produce goods or services. Entrepreneurship means
setting up a business to make a profit.
● Risk taking. Entrepreneurs are always working under a certain degree of uncertainty, and they can’t know the
outcomes of many of their decisions.
Impacts on the Canadian Economy

● Deduction in small businesses and integration in the canadian tax system.

● The benefits of incorporation for business owners in canada.
● The Drawbacks of incorporation for business owners in canada.
Case Study

Sarah Mitchell, a passionate food enthusiast with a background in marketing, identified a

gap in the health food market for delicious yet nutritious snacks. Armed with a unique recipe and
a strong belief in her product's potential, she embarked on her entrepreneurial journey to create
a health food brand that would disrupt the industry.
Sarah's journey began when she noticed the increasing consumer demand for healthy
snack options. Traditional snacks were laden with preservatives and unhealthy additives, leaving
health-conscious consumers seeking better alternatives. This presented a golden opportunity for
Sarah to introduce her innovative, all-natural snacks made from locally sourced ingredients.
Sarah started her venture as a sole proprietorship, making her products from her own kitchen.
As demand grew, she expanded into a small-scale production facility and eventually registered
her business as a private limited company. This transition allowed her to attract investors and
secure funding for scaling operations, broadening her distribution channels, and entering new
markets.
1) What effect will Sarah’s business have on
Canadian economy?
2) What risks and benefits came with being a sole
proprietor?
3) What does it mean to be a private limited
company?
References