Question

state the difference between sole proprietorship and partnership​

Answer 1

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.

Answer 2

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....✌️❤️