Distinguish between sole trading concern and joint hindu family firm
Answers
The differences between sole trading concern and joint Hindu family firm are as following:
Solo trading: There is only one owner and the business is controlled by only him. It can be formed at any time without any registration.
Family Firm: Two or more people can be the owner of the business and have equal shares and power. It can be formed once there is an agreement between all the owners. Registration is not compulsory but preferred.
Explanation:
The ancestral business which is continued and conducted by the members of a Hindu Undivided Family under the direction of the senior most member for earning profit is called Joint Hindu Family Firm. ... Since, sole trading concern is owned and managed by a single person, there cannot be more than one member.