Also, note that there isn't always only one right thing to do with a form field.
This warrants repetition and emphasis.
The forum is rife with
Q&As assuming there is a definitively correct response for application form questions which are more about soliciting honest information from the applicant, not so much about technically correct answers. The risks and pitfalls in approaching the application focused on giving technically correct answers, rather than forthcoming honest answers, are many, some serious.
An honest, non-evasive response, based on the applicant's best understanding of what is being asked and what is an accurate and complete, non-deceptive and non-misleading answer, is the best approach to answering most of the items in the application. Sure, there are some items for which there is only one possible correct response. Your date of birth on your most recent immigration document, for example (item 4.c). But the applicant's priority in responding to most items should be focused on, first, understanding what is asked, and second, given the facts and circumstances as the applicant truthfully and sincerely understands them, what is the most honest and responsive answer the applicant can give.
Focusing on what is technically correct tends to not help much. That tends to be the gaming approach. Processing agents at IRCC are better at discerning such applicants than many give them credit. (Recognizing that many applicants who are, in effect, caught, will allege unfairness when IRCC sees through the ruse. )
Incorporated sole-proprietors:
There are scores of reasons for sole proprietors to incorporate unrelated to immigration and citizenship. But, this is also one of the mechanisms historically employed by more than a few PRs whose business is predominantly abroad to make it appear they are working in Canada.
For obvious reasons, IRCC can be skeptical about those immigrants who are self-employed, whether they have incorporated or not.
The important thing is where the individual does the work. IRCC has more tools these days to sort through these things.
The incorporated sole-proprietor should encounter no concerns reporting his or her employment for the corporation, as employed by the corporation, so long as this is an above-board, actually doing business in Canada, or actually doing the work in Canada business.
Those masking the nature or location of the work done, those gaming the system, face some rather obviously increasing risks in this digital information age.