Differences between sole trading and partnership firm
Sole trading concern
|
Partnership firm
|
| 1. low capital | 1.high capital |
| 2. one man management | 2. two or more partners |
| 3.quick and prompt decisions | 3. delay in decisions |
| 4. business secrets can be maintained | 4. difficulty in maintaining business secrets |
| 5. risk and losses are to be born by a single person | 5. there is reduction of risk and losses because they are shared with proportion of capitals by partners |
| 6.no chances of conflict | 6. higher chances of conflict |
| 7. lack of managerial ability | 7. harmonization of managerial ability |
| 8.chances of wrong decisions | 8. specialization in decision making |
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Rahul-Notes