Fundamental Business | Essay

Running head: FUNDAMENTAL BUSINESS
FUNDAMENTAL BUSINESS
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FUNDAMENTAL BUSINESS
Business Registration Information by Service Ontario
The business registration information by service Ontario provides the potential
entrepreneurs with the detailed steps for the process of registration of a business. As most of the
businesses in Ontario have an annual sale or revenue value exceeding the amount of $30,000
they are required to be registering their business and charge HST (Services.gov.on.ca, 2019). The
service Ontario provides with the details for the registration of both partnership and sole
proprietorship business. The service Ontario provides with the registration fees, renewal fees and
amendment fees for the registration both in person and by mail. The mailing address is also
provided.
Advantages and disadvantages of Business ownerships
There are primarily three types of business structures operating in Ontario. The three
business structures are sole proprietorship, partnership and company. All these types of business
structures have certain advantages and disadvantages. The advantages and the disadvantages of
all the three types have been discussed as follows.
Sole Proprietorship Business
Advantages
1. It is easier to set up and form a sole-proprietorship
2. The sole-proprietor is entitled for receiving the entire turnover that the business has made
throughout.
3. The sole- proprietor has complete authority over the business affairs and is further
entitled to be making choices in relation to the affairs in fast and organized manner as
there is no presence of any kind of second opinion (Segal & Choi, 2016).

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FUNDAMENTAL BUSINESS
4. Like setting up, the dissolution of the business is also very easy in comparison to the
other business structures.
Disadvantage
1. As there is no separate recognition of the business from the owner, therefore, the only
source of capital is from the personal investment of the owner and by way of the revenues
generated by the business transaction (Brink, 2018)
2. As the capital of the business is limited therefore the development of the business is also
limited.
3. There is no opportunity of perpetual succession in sole-proprietorship business and hence
there is a high chance towards the cessation of the business.
4. The ownership can only be transferred by selling the assets that are present in the
business.
Partnership Business
Advantages
1. This business type is easier to set up in comparison to the company structure
2. Easier to raise capital as personal resources are used for the raising of funds and to get
loans from the banks.
3. Easier to maintain as there as there is less compliance with the statutory needs in
comparison to the company business structure.
4. High level of efficiency is present as the decisions are taken in an effective manner by
using the resources, skills, expertise and knowledge of all the partners present in the
business (Burns, 2016).