Answer: <p>The differences between a sole trading concern and a sole trading concern are given below:<br /><br /><br /></p>
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<p><strong>Basis of difference</strong></p>
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<p><strong>Sole trading concern</strong></p>
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<p><strong>Partnership firm</strong></p>
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<p>No.of members</p>
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<p>A sole trading concern is established and managed by a single person.</p>
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<td>A partnership firm is established and managed by two or more person.</td>
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<p>Investment</p>
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<p>A single person invests capital for the operation of the business.</p>
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<td>Two or more partners invest capital for the operation of the business.</td>
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<p>Agreement</p>
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<p>Due to only one sole trader, sole trading concern doesn't need any agreement.</p>
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<td>An agreement among the partners is compulsory for the operation of the business.</td>
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<p>Decision Making</p>
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<p>Decision of business is taken quickly by a single person. There is a high chance of making a wrong decision.</p>
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<p>Decisions of a partnership are taken by all partners through their mutual consent. Decision making is delayed but decisions become matured and rational.</p>
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<p>Secrecy</p>
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<p>The sole trader can maintain the full secrecy of the business matter.</p>
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<p>Tight business secrecy cannot be maintained. Chances of leaking business secrecy are comparatively higher in partnership.</p>
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<p>Management</p>
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<p>The business is managed and control by a single person.</p>
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<p>The business is managed and controlled by two or more than two persons.</p>
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<p>Risk Bearing</p>
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<p>The sole trader himself bears all risk and responsibilities of the business.</p>
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<p>All partners share the risk and responsibility.</p>
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<td>Registration</td>
<td>The sole trading concern should be registered under the Private Firm Registration Act 2014.</td>
<td>The partnership should be registered under the Partnership Act, 2020.</td>
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Answer: <p>Patnership&nbsp;is a form of business which as evolves a form of organization in which overcome the shortcomings of sole probetween prietor. It is an agreement between two or more than two persons for carrying on a lawful business for earning profit. Hemce, partnership is an extension of sole trading concern. An individual who make an agreemennt or invest money callled patners. A partner may be directly involved in the business are called the active partner or a partner only invest in the business is called sleeping partner.&nbsp;<br /><br /></p>
<p><strong>According to L.H Haney,</strong> &ldquo;partnership is the relation existing between persons competent to make a contract, who agree to carry on a lawful business in common with a view to private gain."</p>
<p><strong>According to J.L Hansen</strong>, &ldquo;A partnership is a form of business organization in which two or more persons join together to undertake some form of business activity."<br /><br />From the above definition, it is clear that, A partnership is a form organisation in which two or more persons make an agreement to make legal business.<br /><br /><strong>Characteristics of Partnership organization are</strong></p>
<ul>
<li>Formation</li>
<li>Mutual agreement</li>
<li>Transfer of shares</li>
<li>Sharing of profit or loss</li>
<li>Unlimited liability</li>
<li>No separate legal entity</li>
<li>Management</li>
<li>Mutual agency</li>
<li>Utmost good faith</li>
<li>Individuality of partners</li>
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Answer: <p>The partnership is defined as in Partnership Act, 1932, the relationship between two or more persons to do legal business. &nbsp;The main characteristics of partnership firm are:</p>
<ul>
<li><strong>Agreement<br /></strong>An agreement is a basis for forming the partnership. The partnership is a result of a contract or an agreement that is done between the partners. It is a written form signed by all the partners to carry on business for earning and sharing the profit or loss. It does not arise from birth, status or inheritance or succession.<br /><br /></li>
<li><strong>Joint Ownership<br /></strong>Partnership&nbsp;has two or more partners. The amount of capital of the partners&nbsp;may, differ from one another&nbsp;as per their agreement. Partnership has no separate existence apart from the partners composing it.<br /><br /></li>
<li><strong>Joint Management<br /></strong>The partnership business can be carried on by all the partners or by any one or more acting for all.For the smooth operation of the firm, the partners divide the duties and responsibilities as per the partnership&nbsp;agreement. the partners&nbsp;have to trust on another partner in managing&nbsp;the daily activities.<br /><strong><br /></strong></li>
<li><strong>Sharing of profit<br /></strong>At an agreed ratio, the profit or loss is shared between or among partners. In the absence of an agreement for sharing profit, all partners should share pofit equally.<br /><br /></li>
<li><strong>No separate&nbsp;legal entity<br /></strong>According to law, the partners and partnership&nbsp;firm are treated as one and same. The death, lunacy, insolvency disability, etc. of partners&nbsp;or partners easily affect the life of partnership firm.&nbsp;Partnership firm cannot make agreement contract or perform business in its name independently.<br /><br /></li>
<li><strong>Unlimited Liability<br /></strong>Every partner&nbsp;has unlimited&nbsp;liability.&nbsp;If the firm fails to satisfy its debt, each partner is liable to repay all the debts of business even from his personal property.&nbsp; In this business, liability is not limited to the property of the business.<br /><br /></li>
<li><strong>Restriction in transferring method<br /></strong>&nbsp;Partner&nbsp;or none of the partners&nbsp;are not allowed to transfer his interest or share to outsiders without the consent of all the partners<strong>.</strong> Thus there is a restriction of interest of a partner.<br /><br /></li>
<li><strong>Role of principal and agent</strong><br />Each partner&nbsp; plays the role of a principal for outsiders and an agent for the other&nbsp;partners. Partnership&nbsp;is managed by all partners &nbsp;with equal responsibilities.</li>
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