difference between joint stock company and patnership three difference
Answers
Answer:
Joint stock: the liability of members is limited(upto the value of the shares). Partnership: Members contribute the funds. Joint stock: can borrow from bank and can issue paid up shares to get capital. Partnership: members of registered firms need to pay tax individually.
Explanation:
As compared to a joint stock company, it is easy and simple to form a cooperative society. The legislative formalities required for its formation are not many.
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Forms of Business Organization.
Basis Cooperative Organisation Joint Stock Company
Exemption Exempt from paying stamp duty and registration. No such exemption
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answer
Sr. No Basis of Difference Partnership Firm Joint Stock Company
1. Meaning Two or More persons come together for some business activity & agree to share profit & loss is called partnership firm It is Voluntary association of individuals for profit having capital divided into transferable shares, the ownership which is the condition of membership
2. Membership Partnership firm owned by two or more and maximum 10 in banking and 20 in other firms In private limited company minimum of numbers of members are 2 and maximum numbers are 50. In public limited company minimum numbers are 7 and no maximum number limit
3. Formation Formation is simple and less costly. only a partnership deed is required. Registration is optional [ except in Maharashtra ] Formation involves many complicated legal formalities. Therefore it is costly legal formalities. Therefore it is tremendously time-consuming
4. Liability Liability of partners are unlimited. Liability of every shareholder is limited to the extent of the unpaid amount on shares held by him
5. Act Partnership is controlled under partnership Act, 1932 Joint stock company is controlled under the Indian companies Act, 1956
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