Difference or Distinguish between Partnership and Joint stock company

We can distinguish between partnership and joint stock company by the following ways :

1. Formation :-
Partnership : It is formed by a written agreement.
Joint stock company : It is formed under the company ordinance.

2. Members :-
Partnership : Minimum 2 and maximum 20 members in the partnership.
Joint stock company : It has shareholders.

3. Liability :-
Partnership : The liability of each partner is unlimited if it is not specified in the agreement.
Joint stock company : Shareholders liability is limited only to the value of the shares.

4. Financing :-
Partnership : Generally partners contribute the fund.
Joint stock company : It issues ordinary paid up shares to collect the capital. It can also borrow from banks.

5. Tax :-
Partnership : Each partner of the registered firm will pay tax individually.
Joint stock company : The company is subject to double taxation.

6. Management :-
Partnership : In this case managerial functions are shared by partners according their mutual agreement.
Joint stock company : Shareholders elect the board of directors and board appoints the experts for each department.

7. Control :-
Partnership : All the decisions are made with the consultation of all the members.
Joint stock company : The board of directors controls the affairs of the business.

8. Dissolution :-
Partnership : It can be dissolved with the mutual consent of the partners. It may be dissolved if any partner dies retires or become insolvent.
Joint stock company : ( 1 ). It can be dissolved by court. ( 2 ). With the approval of majority share holders. ( 3 ). If corporate charter expires. ( 4 ). It can be dissolved by the state due to misuse of powers.

8 comments:

Unknown said...

Nice I like the diff

Unknown said...

It's good

Unknown said...

Nice

Unknown said...

Nice

Shehzad said...

Distinction between Partnership and Joint Hindu Family

Unknown said...

Its gud to understand

Nayab khanum said...

Its well defined n v cn understand it easily

Unknown said...

Ya its well defined with clear understanding and simple difference which can be remembered very soon

Define the concepts of 'evaluation', 'measurement' and 'assessment' And also explain the differences among them with examples

The concept of educational evaluation is not a discovery of the present age. Evaluation is a reality of our daily life. Every individual...