Differentiate between sole trading and partnership



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