Differentiate sole proprietorship and partnership form of business - Business Studies - Forms of Business Organisations

Question

Differentiate sole proprietorship and partnership form of business

Nikhitha K K · Accepted Answer

Solution:

The Partnership firm is governed by the 
Indian Partnership Act, 1932 and A Sole Proprietorship is not
governed by any specific statutory body
In case of Partnership, The incorporation of Business firm is
voluntary and In case of Sole Proprietorship, incorporation of
business is not required
In Partnership minimum number of Members are 2 and a Maximum
number of partners are 100 and In a Sole proprietorship, there is
only one member but the maximum members can be 100
In the Partnership firm, Liability is borne by the Partners in
Sharing Ratio and in Sole Proprietorship, Liability is Taken Care
of By Sole proprietor
There is dependably a vulnerability with respect to the term of
the sole proprietorship as it can wind up whenever if the
proprietor retires or Dies or on the off chance that he ended up
awkward to maintain a business Then again, a Partnership can be
broken up whenever, in the event that one of the two Partners
resigns or dies or ended up indebted, yet in the event that there
are in excess of two Partners, it can proceed at the tact of the
rest of the Partners
In sole proprietorship business, the mystery is kept up, as the
insider facts are not open to any individual other than the
proprietor Despite what might be expected, in a Partnership firm,
business insider facts are kept up to each accomplice
The extent of bringing fund is high up in Partnership Firm when
contrasted with sole proprietorship business

Differentiate sole proprietorship and partnership form of business.