Ownership and Control of your Business

Private sector business represents that part of the economy that is not owned or controlled by any level of the government. It is all about individuals owning and controlling the factors of production for the purpose of making a profit.

 Set up, owned and operated by one person  Licence and registration required by the municipality  PST and GST numbers required for tax collection and submission  Unlimited liability (owner pays to settle any lawsuits)  Business can access only as much capital as the owner is worth  Business operates as long as the owner decides

 Retail store, catering business, tutoring service, product manufacturer or yoga studio  The Village Diner  Al’s Auto Service  Richi Milk  Eastend Yoga

 Set up, owned and operated by two or more people  People share the work  Important for partners to be compatible  General Partnership, all partners have unlimited liability  Limited Partnership, one partner is not responsible for the risk or negligence of another partner

 Limited Liability Partnerships are often used by lawyers, accountants and physicians  General Liability Partnerships focus on regular businesses where people want to work and own a business together  Contracting  Franchise purchased

 Establishes a new legal entity or “person”  Set up to make profits for the owners or shareholders  Managed by directors chosen by the shareholders  Shareholders have limited liability  No one can be sued personally  Shareholders can only lose the amount they have invested  Greater ability to raise more capital through the sale of more shares

 Petro-Canada  Canadian Tire  Loblaws  Research in Motion (RIM Blackberry

 Jointly owned by members who use the service  Must be incorporated  Members have limited liability  Consumer co-ops provide goods and services to consumers  Producer co-ops provide goods and services to producers  In Canada, there are over 8800 co-ops employing people

 Alterna Savings  Sandhills Credit Union  Gay Lea Foods  Co-operative Housing Federation of Canada

 Owned by the government rather than shareholders  Purpose is not profit, but to serve a public interest  Can provide a good or service not provided by the private sector  Helps to ensure public control of sensitive industries

 VIA Rail  Export Development Canada  Atomic Energy of Canada  Ontario Hydro  Canadian Broadcasting Corporation (CBC)