The difference between Sole trading and partnership are as follows:
Sole Trading Concern :
1. Membership : It is owned and controlled by only one person.
2. Agreement : The question of agreement does not arise.
3. Capital : Only the capital of one person is used in the business. Thus, it may suffer from shortage of capital.
4. Decision : The owners has full control over his business. So he is able to take decision promptly.
5. Secrecy : There is a complete secrecy in the business.
6. Risk : The whole risk is beared by the proprietor.
7. Management : This business is controlled by one person only.
8. Desire for Work : The sole proprietor owns all and risks all. So, he works with interest and dedications.
Partnership Firm
1. Membership : Two or more persons known as partners own partnership.
2. Agreement : An agreement is necessarily required to form partnership.
3. Capital : All the partners contribute towards capital of the firm. So, more capital than sole trading can be collected.
4. Decision : All important decisions are taken by consent of all partners. So, it is time consuming process.
5. Secrecy : The secrets of the business are in the knowledge of all the partners.
6. Risk : All the partners share risk.
7. Management : All partners have equal rights and all of them can participate in the management.
8. Desire for Work : There is less desire for work because a partner may think that other partners will share the benefit of his work too.
Sole Trading Concern :
1. Membership : It is owned and controlled by only one person.
2. Agreement : The question of agreement does not arise.
3. Capital : Only the capital of one person is used in the business. Thus, it may suffer from shortage of capital.
4. Decision : The owners has full control over his business. So he is able to take decision promptly.
5. Secrecy : There is a complete secrecy in the business.
6. Risk : The whole risk is beared by the proprietor.
7. Management : This business is controlled by one person only.
8. Desire for Work : The sole proprietor owns all and risks all. So, he works with interest and dedications.
Partnership Firm
1. Membership : Two or more persons known as partners own partnership.
2. Agreement : An agreement is necessarily required to form partnership.
3. Capital : All the partners contribute towards capital of the firm. So, more capital than sole trading can be collected.
4. Decision : All important decisions are taken by consent of all partners. So, it is time consuming process.
5. Secrecy : The secrets of the business are in the knowledge of all the partners.
6. Risk : All the partners share risk.
7. Management : All partners have equal rights and all of them can participate in the management.
8. Desire for Work : There is less desire for work because a partner may think that other partners will share the benefit of his work too.
Posts
2 comments:
Thanks for sharing information about Partnership registration
Thanks for posting an amazing article, it is quite useful for me asset reconstruction company registration Visit Our Website.
Post a Comment