Question

Sole trading concern and partnership firm ​

Answer 1

Answer:

Proprietorship Firm Partnership Firm

A firm run by only single individual and he is the sole owner of the firm. A firm started by two or more partners with the aim to earn profit is known as a partnership firm.

There is no specific governing law. It is govern by the Indian Partnership Act.

There can be only one member. There must be minimum 2 and maximum 50 partners.

Proprietor has to borne liability alone. The liabilities will be shared among partners.

Proprietor is the sole decision maker; hence decisions can be taken quickly. Approval from all or majority of the partner is necessary as per the agreement; hence there may be delayed decisions.

Profit is solely earned. Profit is distributed among partners.

Proprietor is the only source of capital. Capital is brought by all the partners.

It is less credible. It is more credible as compared to proprietorship firm.

Answer 2

Answer:

Ownership. A sole trader is an individual who owns a business entirely by himself. The business and this person is one, meaning that both the company's profit and liability belong to the individual. ... A partnership is a business entity comprised of two or more individuals.