entrepreneur qualifying bussiness definition

[tocanada67]

I found this on the CIC webside

Qualifying business means a business—other than a business operated primarily for the purpose of deriving investment income such as interest, dividends or capital gains—for which, during the year under consideration, there is documentary evidence of any two of the following:

the percentage of equity multiplied by the number of full-time job equivalents is equal to or greater than two full-time job equivalents per year;
the percentage of equity multiplied by the total annual sales is equal to or greater than $500,000;
the percentage of equity multiplied by the net income in the year is equal to or greater than $50,000; and
the percentage of equity multiplied by the net assets at the end of the year is equal to or greater than $125,000.
Qualifying Canadian business means a business operated in Canada by an entrepreneur—other than a business operated primarily for the purpose of deriving investment income, such as interest, dividends or capital gains—for which there is in any year within the period of three years after the day the entrepreneur becomes a permanent resident documentary evidence of any two of the following:

the percentage of equity multiplied by the number of full-time job equivalents is equal to or greater than two full-time job equivalents per year;
the percentage of equity multiplied by the total annual sales is equal to or greater than $250,000;
the percentage of equity multiplied by the net income in the year is equal to or greater than $25,000; and
the percentage of equity multiplied by the net assets at the end of the year is equal to or greater than $125,000.

I don't understand it well and I don' t know how to do the math .
Could someone tell me in simple words what it means and how to do the math .
It' s a 2 persons partnership and we are not related , only bussiness partners . I owe less the 50% .

Thank a lot to everybody

 

[sckel]

My understanding is as follows:
As a working example, lets assume you own 40% of the company, to be considered a qualifying business, the company would have to meet at least two of the following criteria:
1. Total annual sales of $1,250,000.00 - multiplied by your 40% equity = $500,000.00
2. Net income for the year of $125,000.00 - multiplied by your 40% equity = $50,000.00
3. Net assets of $312,500.00 - multiplied by your 40% equity = $125,000.00
4. Minimum of 5 full time job equivelants for the year (full time job equivelant being 1,950hrs of paid work) - multiplied by your 40% equity = 2.

In simple terms, you take each item (sales, income assets etc) and multiply it by the % you own in the business, and that amount must be equal to or greater than the qualifying figures that CIC gives.
Hope this helps.