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Question
Sole trading concern and Partnership firm .
Solution
|
Sr.No. |
Basis of Difference | 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 | 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. |
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Concept of Sole Proprietorship Or Sole Trader
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A sole trading concern ensures ______________ business secrecy.
Match the pairs :
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Group 'A' |
Group 'B' |
||
| (a) | Sole trader | (1) | Compensation upto Rs 20 lacs |
| (b) | Globalisation | (2) | Minimum two members |
| (c) | District Forum | (3) | Dr. Deming |
| (d) | Private company | (4) | Regional market |
| (e) | Total Quality Management | (5) | F. W. Taylor |
| (6) | Minimum seven members | ||
| (7) | Maximum secrecy | ||
| (8) | Compensation more than Rs 20 lacs | ||
| (9) | International market | ||
| (10) | Minimum secrecy | ||
Functions of Lower Level Management.
Sole Trading Concern and Partnership
Select the proper option from the options given below and rewrite the completed sentence.
A proprietor has ________ liability.
Write a word or a phrase or a term which can substitute the following.
The owner is the sole manager and decision maker of his business.
Write short notes on the following.
Features of a proprietorship
Write short note on the following.
Features of partnership firm.
State Whether the Following Statement Is True Or False (Give Reason).
A sole trader can take prompt decisions and quick actions.
State Whether the Following Statement Are True Or False (Give Reason)
A sole trader has weak bargaining power.
State Whether the Following Statement Are True Or False (Give Reason)
Business secrecy cannot be maintained in a Sole Trading Concern.
State Whether the Following Statement Are True Or False (Give Reason)
Sole Trading Concern is convenient and suitable when the market of goods is local.
Despite limitations of size and resources, many people continue to prefer sole proprietorship over other forms of organisation. Why?
Kiran is a sole proprietor. Over the past decade, her business has grown from operating a neighbourhood corner shop selling accessories such as artificial jewellery, bags, hair clips and nail art to a retail chain with three branches in the city. Although she looks after the varied functions in all the branches, she is wondering whether she should form a company to better manage the business. She also has plans to open branches countrywide.
(a) Explain two benefits of remaining a sole proprietor
(b) Explain two benefits of converting to a joint stock company
(c) What role will her decision to go nationwide play in her choice of form of the organisation?
(d) What legal formalities will she have to undergo to operate business as a company?
In a cooperative society, the principle followed is
Profits do not have to be shared. This statement refers to
A partner whose association with the firm is unknown to the general public is called
Define sole proprietorship.
Define the following business entities:
Sole Proprietorship
