COMPANY VS. PARTNERSHIP

Distinguish between a Company and a Partnership finny. Ans.
Points of Distinction Company Partnership's
1. Registration
2. membership
3. Status
4. Regulation Act
5. Property
6. Liability
Registration of a 1irm is not compulsory. Minimum 2 persons constitute a partnership. The maximum number of members in the case of a firm is fixed at
10 for banking business and at 20 for any other business.
A tirm has no separate legal status.
Partnership firm is governed by the provisions of Indian Partners:ip Act, 1932.
Property of the firm is the property of the partners.
Registration of a company is compulsory under the Companies Act.
Minimum 2 and maximum 50 constitute a private limited company and minimum 7 and maximum unlimited constitute a Public .Limited Company.
A company has a separate legal existence cf its own and is considered a separate person from its members.
A company is regulated by the Companies Act, 1956. .
Property of the company belongs only to the company and not to its shareholders.
In partnership each partner In a company, a shareholder has unlimited liability and is has limited liability-limited personally liable for all the to the extent of
the unpaid debts of the firm. amount on the shares held by him or the amount guaranteed by him.
7. Documents
8. Mutual Agency
9. Management
8. Transfer of Interest
9. Audit
10. Winding up