Answer to Question #82246 in Accounting for Amaka

Question

Differentiate between Sole Proprietorship, Partnership and Incorporated Organisation using three sentences.

Answer 1

A Sole Proprietorship is owned and run by one person, so the owner receives all profits and is responsible for all loses and obligations. A partnership involves two or more partners who share profits in proportion to their participation or are liable for obligations. Incorporated organizations are created by a group of people with some purpose, they are controlled by individuals appointed by the members and their profits can be shared between members or not.