Distinguish Between – Sole Trading Concern and Partnership Firm

Distinguish  Between

Sole Trading Concern and Partnership Firm

HSC – Organization of Commerce and Management – Notes,  & Distinguish Between – according to the New Textbook

Sr. NoBasis DifferenceSole TradingPartnership Firm
1.MeaningOwned and controlled by only one personTwo or More persons come together for partnership firm
2.FormationSole trading can be formed by any one at any timePartnership firm can be formed by an agreement between two or more persons
3.OwnershipOnly  one person  can be ownerPartnership firm owned by two or more and maximum 10 in banking and 20 in other firms
4.RegistrationRegistration is not necessaryNot necessary but useful [compulsory in Maharashtra]
5.SecrecyMaximum SecrecyPartners share secrecy
6.ManagerialManagement lies on ownerContributed among partners.
7.CapitalAmount of capital is very smallCapital is high as partners contribute.
8.Profit and LossProprietor himself receive all profit and loss.profit and loss are shared by partners.

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