Describe the difference between sole trader and partnership in terms of

English

1 answer:

vova2212 [387]3 years ago

6 0

Answer:

1. appropriation of profit

In sole trader business, the business is owned by a single individual who takes all the profits realized from the business within a given particular financial year. On the other-hand, partnership business would involve the sharing of the profits among the partners in that business thereby reducing their profits.

2.equity accounts

In sole trader business, the equity of accounts lies solely on the expenses as well as sales made by the individual who owes the business while in partnership business, the equity would take into account the different individual expenses of the different partners such as their accommodation, or daily expenses.

3.net profit:

In sole trader business, the net profit is maximised because, the accounts expenses would be minimal while in partnership business, the net profits would be minimal due to various expenses among the partners which has to be taken into account.

Explanation:

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