Difference b/w partnership and joint stock company
The company form of business organization enjoys a number of benefits over the partnership. This is due to the fact that, in a partnership firm, there must be at least two persons, mutually agree to run the business and share the profits or losses in a manner prescribed in the agreement. The maximum number of partners a partnership firm could have is only This gave rise to the evolution of Company, in which there can be any number of members.SEE VIDEO BY TOPIC: Difference between a partnership and shareholders
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Differences between Partnership Firm and Joint Stock Company
The following are some of the differences between a Partnership firm and Joint Stock Company. Minimum number of members is two in a Partnership firm. Whereas in Joint Stock Companies, Minimum number is two in a private company and seven in a public company. In a Partnership firm, maximum number of members is 20 in general business and 10 in banking firms.
In a Joint Stock Company, maximum number of members is 50 in a private company and there is no maximum limit in public company. Registration of a Partnership firm is not compulsory. Registration of Joint Stock company is compulsory. Partnership firms has no separate legal existence. Partnership Firm and partners are the same. Joint Stock company has separate legal existence. It is an artificial person created by law. Partnership firm is regulated under the Partnership Act, Joint Stock Company is regulated under the Companies Act, Huge capital for partnership firm cannot be secured.
There is possibility of securing huge capital in case of Joint Stock company. In a Parternship firm, liability of each partner is unlimited, joint and several.
In a Joint Stock Company, liability of each shareholder is limited. Transfer of shares is not possible without the consent of all the partners in a partnership firm. In case of pubic limited companies shares can be transferred freely.
Partnership Firm is managed by the partners themselves, in general. In a Joint Stock Company, management will be in the hands of elected directors. Audit of accounts of Partnership firm is not necessary. Audit of accounts of Joint Stock Company is compulsory. The objects of the Partnership firm can be changed easily. It is not so easy in case of a Joint Stock Company. Partnership firm has no continuous existence.
Joint Stock Company has continuous existence. This site uses Akismet to reduce spam. Learn how your comment data is processed. Minimum No. Maximum No. Registration 4. Separate Legal Existence 5. Legislation 6. Capital 7. Liability 8. Transfer of Shares 9. Management Audit of accounts Flexibility Perpetual succession. Related Posts. Tags: Joint stock company , Partnership. Leave a Reply Cancel reply.
Difference Between Partnership Firm and Company
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A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares certificates of ownership. In modern-day corporate law , the existence of a joint-stock company is often synonymous with incorporation possession of legal personality separate from shareholders and limited liability shareholders are liable for the company's debts only to the value of the money they have invested in the company. Therefore, joint-stock companies are commonly known as corporations or limited companies.
4 Key Differences Between a Partnership and a Joint Venture
A company is regulated by Companies Act, , while a partnership firm is governed by the Indian Partnership Act, A company cannot come into existence unless it is registered, whereas for a partnership firm registration is not compulsory. The minimum number in a public company is seven and in case of a private companies two. In case of partnership the minimum number of partners is two. The maximum limit of members in case of a private company is fifty but in case of public company there is no maximum limit.
Variations within these categories can exist and will depend on each individual situation. Here we explore the definitions and differences of limited, general, and joint venture partnerships. In general, a partnership is a business agreement between two or more people who are called partners. Partners have an interest in the business for which they are associated.
Difference between Partnership and a Company
The following are some of the differences between a Partnership firm and Joint Stock Company. Minimum number of members is two in a Partnership firm. Whereas in Joint Stock Companies, Minimum number is two in a private company and seven in a public company.
Partnership and Company are the most familiar terms for the people who are pursuing business education or commerce education. This article presents you the top differences between Partnership Firms and Companies. The members of the Partnership firm are called as Partners. There are different types of partners such as Active partner, Sleeping partner, Nominal partner, Minor partner, Etc. Partnership Frim is created by agreement between two or more people by registering the partnership firm with Registrar of Firms according to Indian Partnership Act, Registration of a partnership firm is very simple process and Application for registration of firm must contain the following details.