Question
Give the differences between sole proprietorship and partnership.
|
|
Basis
|
Sole Proprietorship
|
Partnership
|
|
1.
|
Number of Members
|
In a sole proprietorship, there is no agreement as there is only one member.
|
In a partnership, there can be minimum two members and maximum fifty members.
|
|
2.
|
Agreement
|
In a sole proprietorship, there is no agreement between/ among members.
|
A partnership is based on agreement between/ among members.
|
|
3.
|
Sharing of Profits
|
A sole proprietor is the recipient of all the profits.
|
Partners have to share profit amongst them in an agreed ratio.
|
|
4.
|
Decision-making
|
In sole proprietorship, the decision-making power rests with the sole proprietor.
|
In partnership, all the partners can participate in decision-making.
|
|
5.
|
Survival
|
A sole proprietorship comes to an end with the death of the sole proprietor.
|
A partnership firm can continue even after the death of a partner, if the other partners so decide.
|
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.