Distinguish Between
Sole Trading Concern and Partnership Firm
HSC – Organization of Commerce and Management – Notes, & Distinguish Between – according to the New Textbook
| Sr. No | Basis Difference | Sole Trading | Partnership Firm |
| 1. | Meaning | Owned and controlled by only one person | Two or More persons come together for partnership firm |
| 2. | Formation | Sole trading can be formed by any one at any time | Partnership firm can be formed by an agreement between two or more persons |
| 3. | Ownership | Only one person can be owner | Partnership firm owned by two or more and maximum 10 in banking and 20 in other firms |
| 4. | Registration | Registration is not necessary | Not necessary but useful [compulsory in Maharashtra] |
| 5. | Secrecy | Maximum Secrecy | Partners share secrecy |
| 6. | Managerial | Management lies on owner | Contributed among partners. |
| 7. | Capital | Amount of capital is very small | Capital is high as partners contribute. |
| 8. | Profit and Loss | Proprietor himself receive all profit and loss. | profit and loss are shared by partners. |