MGM101H5 Lecture Notes - Lecture 4: Family Of Sets, Double Taxation, Pension
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MGM101H5 Full Course Notes
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3 major forms of business ownership: sole proprietorships. Sole proprietorship: a business that is owned and operated by 1 person, without forming a corporation. The business and the owner are a single body. 24% of all registered business in canada fall under this form of ownership. Ease of starting and ending the business. Buy or lease the needed equipment and inform people of new business. May have to get a permit or license from local government. No need to share profits with anyone else. All profits are taxed as the personal income of the owner. Any business losses can be claimed against other earned income, which decreases the personal taxes that needs to be paid. Administration is less costly than that of corporations. Unlimited liability: the responsibility of business owners for all of the debts of the business. Any debts or damages incurred must be paid, even if it means selling your home or car.
