The Canadian Business Segment Lecture Notes
ADM 1301 Midterm 1 Review
Lecture 2: The Canadian Business Segment
Macroenvironment Of Canadian Business:
Business drives the economy of a nation
The economic system in Canada is a private enterprise system
Basic rights for a private enterprise system:
1. Private Property
2. Freedom of Choice
3. Profits
4. Competition
The work force of Today- Aging, more diversity, shrinking labour pool, etc.
The Canadian Private Sector Forms of Business Ownership:
Sole proprietorship
Partnership:
1. Limited
2. General
Corporations
1. Under Federal Laws
2. Under Provincial Laws
Cooperative
Franchising
Sole Proprietorship: the simplest form of business. Owned and operated by one person. Falls under provincial and municipal jurisdiction. Anyone can become a sole proprietor if they are legally able to enter a binding contract. Operates under a person’s name, no name declaration required.
Advantages:
Easy and cheap to start
Pride of ownership
No special taxes
Flexibility of Control
Secrecy
Disadvantages:
Unlimited liability
Limited growth
Limited life span
Overwhelming time commitment
Limited financial resources
Partnership: Provincial laws require a partnership must legally register its name and give information about the partners. An arrangement where two or more people combine their resources in business with a view to share the profits.
1. General Partnership: Partners are liable in equal share for the debts of the partnership (jointly liable) but in addition, each partner is liable for the full amount (jointly and severally liable. Each member can bind the partnership without consent of the other partners.
2. Limited Partnership: Composed of one or more general partners who run the business and one or more people who contribute actual cash (special or limited partner). Note: special partner normally limited to the amount they contribute.
Silent Partners: know to the public but no active management role.
Secret Partners:
Lecture 2: The Canadian Business Segment
Macroenvironment Of Canadian Business:
Business drives the economy of a nation
The economic system in Canada is a private enterprise system
Basic rights for a private enterprise system:
1. Private Property
2. Freedom of Choice
3. Profits
4. Competition
The work force of Today- Aging, more diversity, shrinking labour pool, etc.
The Canadian Private Sector Forms of Business Ownership:
Sole proprietorship
Partnership:
1. Limited
2. General
Corporations
1. Under Federal Laws
2. Under Provincial Laws
Cooperative
Franchising
Sole Proprietorship: the simplest form of business. Owned and operated by one person. Falls under provincial and municipal jurisdiction. Anyone can become a sole proprietor if they are legally able to enter a binding contract. Operates under a person’s name, no name declaration required.
Advantages:
Easy and cheap to start
Pride of ownership
No special taxes
Flexibility of Control
Secrecy
Disadvantages:
Unlimited liability
Limited growth
Limited life span
Overwhelming time commitment
Limited financial resources
Partnership: Provincial laws require a partnership must legally register its name and give information about the partners. An arrangement where two or more people combine their resources in business with a view to share the profits.
1. General Partnership: Partners are liable in equal share for the debts of the partnership (jointly liable) but in addition, each partner is liable for the full amount (jointly and severally liable. Each member can bind the partnership without consent of the other partners.
2. Limited Partnership: Composed of one or more general partners who run the business and one or more people who contribute actual cash (special or limited partner). Note: special partner normally limited to the amount they contribute.
Silent Partners: know to the public but no active management role.
Secret Partners: