Question

In an essay of at least two well-developed paragraphs, describe the similarities and differences between partnerships and sole proprietorships.

no Plagiarism please

Answer 1

A sole proprietorship is a business owned and operated by one person (owner). Partnership is owned and operated by two or more owners or partners

Both are unincoporated entities and are considered to the same as the owner. The owner and entity are same. The taxes on profit or losses for both are declared by their owners on their personal income tax return and both are personally liable for all debts and losses of the business entitity.

The differences between soleproprietorship and partnership are in the number of partners and the sharing of profits and losses among them.

In soleproprietorship there is only one owner and he will share all profits and losses. In partnership there should be a minimum of 2 and they will split the profits and losses.