Difference between joint stock company and partnership
Answers
Difference between Joint stock Company and Partnership on the basis of :
Formation
Company is formed by getting registered under the Companies Act.
Partnership is formed by signing an agreement by all the partners. ( Registration is not compulsory).
Liability
In Company, liability of members is limited to the extent of contribution in the share capital.
The liability of partners is unlimited.
Management
Company is managed by a board of directors and professional experts.
All partners actively manage the firm.
Continuity
A Company has a stable and continuous existence, as death or insolvency of any member does not affect it.
Partnership gets dissolved on death, insolvency or incapacity of any partner.
Legal Status
Company is considered as a separate legal entity from its members.
Partnership firms and the partners are one and the same.
Governed By
Company is governed by Companies Act,1956.
Partnership is governed by Partnership Act.
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