Forms of Business Ownership

Question 1

Forms of Business Ownership

Answer 1

Sole proprietorship
Partnership
Corporation
Crown corporation
Franchise

Question 2

Sole Proprietorship

Answer 2

Owned, financed and controlled by one individual but can employ other staff.
Common in small shops, restaurants (maybe the restaurant across the school), etc.

Question 3

Partnership

Answer 3

Owned, financed and controlled by 2 or more partners
Terms of Partnership agreed through contract
Common in professions – lawyers, accountants, architects, real estate agents,etc.

Question 4

Corporation

Answer 4

Is an organization of people legally bound together by a charter to conduct some type of business.
The corporation can sue and be sued
Ex. Apple, Wal-Mart, Google

Question 5

Crown Corporation

Answer 5

Is a corporation established by the Government to efficiently deliver a public service.
E.g. Bank of Canada, Via Rail, Canada Post

Question 6

Franchises

Answer 6

Method of business ownership backed by established ‘brand’ name
Owner gets to run a business with less ‘risk’
Owner buys the right to use the established company’s name, format products, logos, display units, methods, etc.
Common franchises –McDonalds, Pizza Pizza, Subway