Question

difference between formal and informal transaction

Answer 1

That transaction which is related with business is called formal transaction.

That transaction which is not related with business but done socially is called informal transaction.

Formal transaction need to follow the hierarchy.
There is no any hierarchy in the informal transaction.


Formal transaction takes lot of time.

Informal transaction takes less time as compared to formal


In Formal transaction, mistakes can't fund out easily.

In. Informal transaction mistakes are easily find out and correct it