Page 13 - PowerPoint Template

1.5 Forms of Business Entities

Differences Sole Partnership Company
Proprietorship

1. Number of owner 1 2 – 20 2 – unlimited

2. Capital source Proprietor Partners Shareholders

3. Life of Limited Limited Indefinite

organization

4. Liabilities Unlimited Unlimited Limited

5. Laws of Businesses Act Partnership Act Companies Act
Regulation 1956 1961 1965

6. Distribution of Wholly owned by Among partners Allocated

profits/losses proprietor according to
shares of capital/

equity ratio

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