Differentiate between sole trading and partnership

Differences between sole trading and partnership firm

Sole trading concern

Partnership firm

1. Low capital1.high capital
2. One man management2. two or more partners
3.quick and prompt decisions3. Delay in decisions
4. business secrets can be maintained4. difficulty in maintaining business secrets
5. risk and losses are to be born by a single person5. there is reduction of risk and losses because they are shared with proportion of capitals by partners
6.no chances of conflict6. Higher chances of conflict
7. lack of managerial ability7. harmonization of managerial ability
8.chances of wrong decisions8. Specialization in decision-making