Question

differntiate between sole tradership and partnership in points​

Answer 1

Sole trading concern

1. low capital
2. one man management
3. quick and prompt decisions
4. business secrets can be maintained
5. risk and losses are to be born by a single person
6. no chances of conflict
7. lack of managerial ability
8. chances of wrong decisions

Partnership firm

1. high capital
2. two or more partners
3. delay in decisions
4. difficulty in maintaining business secrets
5. there is reduction of risk and losses because they are shared with proportion of capitals by partners
6. higher chances of conflict
7. harmonization of managerial ability
8. specialization in decision making