Sponsor Area

Forms Of Business Organization

Question
CBSEENBS11003836

Give any three differences between partnership and sole proprietorship firms. 

Solution

Points of difference

Partnership

Sole proprietorship

1. Legislation

Partnership Act 1932

No specific legislation

2. Agreement

There may be an agreement between partners.

No agreement is required.

3. Secrecy

Business secrecy cannot be maintained.

Business secrecy is maintained.