Distinguish between Partnership and Sole Preprietorship.

Solution

Basis	Partnership	Sole Preprietorship
Specific Act	The partnership firm is governed by Indian Partnership Act, 1932.	There is no separate Act for Sole Preprietorship.
Number of Members	The minimum number of members is two and maximum 20 in ordinary business and 10 incase of banking business.	There should not be more than one owner of the business.
Agreement	A partnership can only arise as a result of agreement.	There is no question of agreement in a sole proprietorship
Secrecy	Secrets are open to every partner	The business secrets are not open
Economic Strength	It is economically more strong as partners can raise more capital and bring greater skills	It is economically weak. The ability of sole trader to provide capital and skills is limited.
Decision Making	Decision making may be delayed as all the partners must agree to the important decisions.	Decision making is very quick as the proprietor is not required- to consult anybody.

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