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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. |
APPEARS IN
RELATED QUESTIONS
| Group'A' | Group 'B' | ||
| a | Sole trader | 1 | Insurable interest |
| b | Life insurance | 2 | Branch of Social Science |
| c | Business ethics | 3 | Local market |
| d | Henry Fayol | 4 | Father of scientific management |
| e |
Planning |
5 | Principle of indemnity |
| 6 | Father of modern management | ||
| 7 | Primary function of management | ||
| 8 | To earn profit | ||
| 9 | Last function of management | ||
| 10 | National market |
Features of sole trading concern.
Distinguish between Proprietorship and Joint Hindu Family Firm
Sole trading concern and Partnership firm .
A sole trading concern ensures ______________ business secrecy.
Match the pairs :
|
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 | ||
Sole Trading Concern and Partnership
Select the proper option from the options given below and rewrite the completed sentence.
A sole proprietorship has ________ owner/owners.
Select the proper option from the options given below and rewrite the completed sentence.
A sole trading concern ensures ________ business secrecy.
Write short note on the following.
Features of partnership firm.
State Whether the Following Statement Are True Or False (Give Reason)
The liability of a sole trader is unlimited.
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.
What do you understand by a sole proprietorship firm?
Despite limitations of size and resources, many people continue to prefer sole proprietorship over other forms of organisation. Why?
The board of directors of a joint-stock company is elected by
Profits do not have to be shared. This statement refers to
The Head of the joint Hindu family business is called
A partner whose association with the firm is unknown to the general public is called
Define sole proprietorship.
