Question

briefly explain three benifits of partnership firm
of business over sole proprietorship form of business organization.?​

Answer 1

Explanation:

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• private limited company :-
• A comparatively moderate Tax is levied as the tax rate for small companies is reduced to 25%.

• partnership firm :-
• The tax levied is 30% of the business profit on which is on a higher side.

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Answer 2

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Sole Proprietorship:-

Sole Proprietorship in simple words is a one-man business organisation. Furthermore, a sole proprietor is a natural person(not a legal person/entity) who fully owns and manages this type of entity. In fact, the business and the man are the same, it does not have a separate legal entity.

Advantages :-

Partnership is an association of two or more individuals (but not more than 20) who agree to share the profits of a lawful business which is managed and carried on either by all or by any, or some of them acting for all. According to Haney, “Partnership is the relation between persons competing to make contract who agree to carry on a lawful business In common with a view of private gain.” The formation of partnership is easy and simple. It is formed to meet the need for” more capital, effective supervision and control, greater specialization, division of work between proprietors and for spreading of risk Persons from similar background or persons of different ability and skills, may join together to carry on a business.