Difference between Sole Proprietorship and Partnership with its comparison

In this article we will discuss about meaning of Sole Proprietorship and Partnership and also discuss Difference between Sole Proprietorship and Partnership with its comparison.


Meaning of Sole Proprietorship

Sole proprietorship refers to a business organization in which enterprises are controlled or owned by a single person. Sole proprietorship is the oldest form of business enterprise in India. It is the simplest form of business and all the risk or losses are bearer by single person. In case, if he wants any help they can get it from their friends, family or relatives. It doesn’t require any legal recognition or formalities and simplest way to open business.

It is also known in simple words one man business which is organized and controlled by single person.

According to William R. Basset “The one-man control is the best in the world if that man is big enough to manage everything”.

Partnership

The word partnership means an association in which two or more persons are agreed to form business by sharing their profits and sharing of losses.

According to Partnership Act, 1932 section 4 defines partnership, “Is the relationship between two or more person who are agreed to share profit of the business and carried all activities by them”.

Also Read :Concept of Partnership its meaning features advantages and disadvantages

According to Uniform Partnership Act of the USA partnership is “an association of two or more persons to carry on as co-owners a business for profit”.

In Partnership all the persons who are agreed to manage business with responsibilities have right to participants in business decisions and manages all activities of business organization.

Difference between Sole Proprietorship and Partnership

SOLE PROPRIETORSHIP V/S  PARTNERSHIP

Basic for comparison

Sole Proprietorship Partnership

Meaning

Sole proprietorship refers to a business organization in which enterprises are controlled or owned by a single person.

The word partnership means an association in which two or more persons are agreed to form business by sharing their profits and sharing of losses.

Liability of members

Unlimited liability

Unlimited liability of all partners.

Governed under

Not specified Act.

Indian Partnership Act,1932

Minimum number of members

One member

Two members

Maximum members

One member

Unlimited

Maintenance of Secrecy

Secrecy maintained because only single person is there.

Risk maintaining secrecy because it is open to every partner.

Decision making

Quick decision making

It takes time in decision making.

So we will discussed  meaning of Sole Proprietorship and Partnership and also discuss Difference between Sole Proprietorship and Partnership with its comparison. For any query comment below.

characteristics of sole trader, conclusion of sole proprietorship, define sole proprietorship, definition of sole proprietorship, difference between a sole trader and a company, difference between company and sole trader, difference between partnership and proprietorship, difference between partnership and sole proprietorship, difference between proprietor and director, difference between proprietorship and partnership, difference between proprietorship and partnership firm, difference between sole proprietorship and company, difference between sole proprietorship and partnership, difference between sole trader and company, difference between sole trader and partnership, one basic difference between partnership and agency law is that, one difference between partnerships and sole proprietorships is that partnerships, partnership vs sole proprietorship, proprietary firm meaning, proprietor vs owner, proprietorship definition, proprietorship firm meaning, proprietorship meaning in telugu, proprietorship vs partnership, sole partnership, sole proprietorship chart, sole proprietorship versus partnership, sole proprietorship vs partnership, sole trader and partnership, sole trader business examples, sole trader meaning in hindi, sole trader vs partnership, the sole trader form of business organisation, what is the difference between a sole proprietorship and a partnership, which best describes the difference between sole proprietorships and partnerships?          

 

Leave a Reply

Your email address will not be published. Required fields are marked *