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Difference between sole propwriter and patnership

Dear Aarushi,

The differences between sole proprietorship and partnership are-
 
Basis of difference Sole proprietorship Partnership
No of members Sole proprietorship is owned by single individual. A Partnership is formed with minimum 2 and maximum 10 (in case of banking) and 20 (in other cases) members. 
Capital The capital of sole proprietorship is contributed by sole proprietor itself. The capital of partnership is contributed by partners.
Agreement No agreement is required for sole proprietorship. An agreement is required to constitute a partnership.
Management  The management of proprietorship lies with the sole proprietor only. The management of the firm lies with the partners.
Risk Risk is borne entirely by sole proprietor. He bear all the losses and get all the profit. Risk is shared by partners. They share profit and loss in the agreed ratio.
Secrecy Secrets of proprietorship are known only to sole proprietor. Secrets of firm are shared among the partners.

Regards

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sole propritor 
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Sole Proprietorship
Sole proprietorship means a business owned, financed and controlled by a single
person who is recipient of all profit and bearer of all risks.
It is SUITABLE IN AREAS OF PERSONALISED SERVICE like beauty parlour,
hair cutting, saloons & small scale activities like retail shops.
Features
1. Single ownership : It is wholly owned by one individual
2. Control : Sole proprietor has full power of decision making.
3. No separate legal entity : Legally there is no difference between business
& businessmen.
4. Unlimited liability : The liability of owner is unlimited. In case the assets
of business are not sufficient to meet its debts, the personal property of
owner can be used for paying debts
5. No legal formalities : are required to start, manage and dissolve such
business organisation.
6. Sole risk bearer and profit recipient : He bears the complete risk and
there is no body to share profit/loss with him.
PARTNERSHIP
Meaning : Partnership is a voluntary association of two or more persons who
agree to carry on some business jointly and share its profits and losses.
FEATURES
1. Two or more persons : There must be atleast two persons to form a
partnership. The maximum no. of persons is 10 in banking business and
20 in non-banking business.
2. Agreement : It is an outcome of an agreement among partners which
may be oral or in writing.
3. Lawful business- It can be formed only for the purpose of carrying on
some lawful business.
4. Decision making & control - Every partner has a right to participate in
management & decision making of the organizations.
5. Unlimited liability - Partners have unlimited liability.
6. Mutual Agency - Every partner is an implied agent of the other partners
and of the firm. Every partner is liable for acts performed by other partners
on behalf of the firm.
7. Lack of continuity - firms existence is affected by the death, Lunacy and
insolvency of any of its partner. It suffers from lack of continuity.
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