|
Sr.
No.
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Basis of Difference
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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
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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.
|
Sole Trading Concern Partnership firm
