ADM 1300 Chapter Notes - Chapter 5: Via Rail, Air Canada, Liquor Control Board Of Ontario

• School: University of Ottawa
• Department: Administration
• Course: ADM 1300
• Professor: Matthew Archibald

Document Summary

Franchising: franchisee purchases right to sell product or service of franchisor. Advantages: training and management assistance, initial and ongoing, personal ownership, nationally recognized name, financial advice and assistance. Disadvantages: large start-up costs (initial as well as ongoing, share your profits, management regulation, coat-tail effect- your success is tied to the franchisor"s performance. [1] sole proprietorships: when management and ownership of a business are one and the same, typically employ less than 50 people, the oldest form of legal ownership in canada (ex. Advantages: easy to form/dissolve, government preferential treatment, sole claim on all profits, personal incentive/satisfaction, pays only personal income tax= federal and provincial more income, more tax, secrecy, flexible schedule. Disadvantages: unlimited liability- sole claim on losses, responsible for all debt of the business, difficulty in raising monies- smaller resource pool- ex. 2: when two or more people combine their financial, managerial and technical abilities to operate a business.