Is this how Canadian elections work?

[Evil Chris]

Yes and Yes, Colin.

There are 301 seats. The party that wins the majority of seats in a federal election chooses the cabinet ministers that form the government. Currently it is the Liberal party. The party that wins the 2nd most number of seats is called the official opposition.

Funny thing... if the leader of the winning party does not win their particular riding he/she cannot assume the role of prime minister. This is very rare, and when it does happen, they usually conduct a by-election in a different riding where they will most certainly win.

We also have appointed senators (ordinarily 105 of them) and they are appointed by the Governor General of Canada on the advice of the Prime Minister. The Senate possesses all of the powers of the House of Commons except that of initiating financial legislation.