Question

Sole trading concern and Partnership firm .

Answer 1

Sr.No.	Basis of Difference	Sole Trading Concern	Partnership firm
1	Meaning	Owned and controlled by only one person.	In this form of business organization two or more persons come together to undertake a business activity and share profits.
2	Formation	It can be formed at any time when proprietor decides.	It can be formed by an agreement between two more competent persons.
3	Ownership	Sole trading concern has only one owner.	Minimum number of members is 2 and maximum 10 in banking and 20 in other firm.
4	Registration	Registration is not necessary.	Registration is not necessary, but it is useful. (compulsory in Maharashtra)
5	Secrecy	A sole trading concern ensures maximum secrecy.	Secrecy is shared by the partners.
6	Managerial	The entire burden of management lies on owner.	All partners contribute these skills so there is division of work and expertise.
7	Capital	Because of only one owner, amount of capital is very small.	Contribution of all partner’s capital increases.
8	Profit& Loss	A proprietor is himself receiver of all the profit and loss.	Profit is shared by partners as per their agreements.