Owen's Pets Store: Case Study
Learning Activity 1 Question 1:
As a sole proprietor, there is no difference between Owen and Owen’s Pets Store. As such, all income from the business is considered personal income by Owen and will be taxed accordingly (The legal and ethical environment of business, 2014, pg. 350).
Learning Activity 1 Question 2:
Dissociation occurs when a party ceases to be associated with the business, giving up authority to act and participate in the activities of the business (Clarkson, K., Miller, R., & Cross, F. (2010), pg. 727). Usually this will cause the dissociating partner to be entitled to an amount equal to the value of that party’s share being paid, although that was not explicitly stated in this case (Clarkson, K., Miller, R., & Cross, F.
As a sole proprietor, there is no difference between Owen and Owen’s Pets Store. As such, all income from the business is considered personal income by Owen and will be taxed accordingly (The legal and ethical environment of business, 2014, pg. 350).
Learning Activity 1 Question 2:
Dissociation occurs when a party ceases to be associated with the business, giving up authority to act and participate in the activities of the business (Clarkson, K., Miller, R., & Cross, F. (2010), pg. 727). Usually this will cause the dissociating partner to be entitled to an amount equal to the value of that party’s share being paid, although that was not explicitly stated in this case (Clarkson, K., Miller, R., & Cross, F.