state the difference between sole proprietorship and partnership
Answers
Answer:
In proprietorship you will get some particular part of leadership in the institute but in partnership you will get only a particular benifit and loss of the corporation.
Basis of Difference
Sole Proprietorship
Partnership
=> No. of Persons
Sole proprietorship:- It is carried by only a single person
Partnership:- It is carried by two or more persons
=>Agreement
Sole proprietorship:- No agreement is required for its formation
Partnership:- Agreement is required for its formation
=>Profits
Sole proprietorship:- The profits from business activities during an accounting period are enjoyed by the sole proprietor
Partnership:- The profits from business activities during an accounting period are distributed among the partners
=>Risk
Sole proprietorship:- proprietor alone bears all the risks and losses of the business
Partnership:- The partners jointly bears the risks and losses of the business
=>Decision Making
Sole proprietorship:- It provides a quick decision making as the sole proprietor himself is the decision-taker.
Partnership:- The decision making process is slightly time-consuming, as it requires mutual-interaction among the partners.
=>Governing Law
Sole proprietorship:- There is specific law or act that governs the operations and activity of a sole proprietorship.
Partnership:- It is governed by the Partnership Act; for instance in India, partnership firms need to abide by the Indian Partnership Act of 1932....✌️❤️