Tuesday, November 13, 2007

What's the difference between a Proprietorship and Partnership?

Proprietorship



  • Owned by one person

  • Only one person has the responsibility of the business

  • Only one capital

  • Usually a service business

  • All the revenue goes to one person

  • Uses an 8 column journal



Partnership



  • Owned by two or more people

  • Everyone involved shares the responsibility

  • More than one capital

  • The revenue is dived up among the partners

  • Usually a merchandising business

  • Uses an 11 colomn journal

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