Question

Sole trading concern and joint Hindu family firm distinguish

Answer 1

Sole trading concern is owned by a single person, who is the sole proprietor of that business.

On the other hand, joint Hindu family firm is owned by a whole Hindu family, every member of which is considered as an owner and mostly it is an ancestral family business.

The liability of sole trading concern lies only with its owner; while the liability of joint Hindu family firm lies with the head of the family.

Sole trading company is less stable than joint Hindu family firm, as death of owner does not stop the company there.