Dilara and Aysha have inherited a winery from their great grandfather Ankit, called Ankita. Dilara and Aysha
Question:
Dilara and Aysha have inherited a winery from their great grandfather Ankit, called “Ankita”. Dilara and Aysha have continued to run the winery as a going concern. They share profits equally. As the years progressed, it had become apparent that Dilara and Aysha did not have enough working capital to keep the winery going. In addition, given great grandfather Ankit was rather old and liked “old things”, the winery became run down, and large amounts of money need to be spent to restore the winery. Dilara and Aysha are approached by Polat, a well-known French winemaker, who wishes to buy part of the Ankita Winery and work there as a chief winemaker. Dilara and Aysha are excited as both Polat’s money and expertise are desperately needed at Ankita. Dilara and Aysha visit your office and seek your legal advice as to:
a) What type of business organisation are Aysha and Dilara currently operating; and
b) Whether the current business structure is the most suitable vehicle for selling part of the Ankita Winery to Polat, or whether they should consider another form of business structure, and, if so, which one?
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker