Question

Difference between partnership and Company?

No copied Answer!!​

Answer 1

$\huge\sf{Answer:-}$

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Partnership

The key difference between a partnership firm and a company.

• A partnership is an agreement between two or more individuals who come or join together to complete a bussiness and mutually shares their profit and losses.

• Registration of a partnership frim is not mandatory when forming a company needs to be registered.

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Additional information:-

The three important key

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$\sf{(1)\:Agreement}$

• There should be an agreement between the partners whether oral / written.

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$\sf{(2)\: Profit}$

• Profit and Loss of the business should be distributed among the partners in a specified ratio.

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$\sf{(3) \:Mutual agency}$

• Each partner is an agent of the firm as well as other partners who do business.

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Company

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• Company refers a bussiness it is an created under the Companies act which has a separate existence and uninterrupted succession from its members.

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• In this, such a company is formed for the achievement of a particular purpose and which has a common seal.

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Additional Information:-

The Three key points

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• A company is created by legislation which has its own statutory existence.

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• Company business is formed where excessive capital is required and risk is also high.

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A company have 4 types of persons as i have written below.

• Promoter
• Director
• Shareholder
• Liquidator

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Answer 2

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➻❥A partnership is an agreement between two or more persons who come together to carry out a business and share profit & losses mutually

➻❥. A company is an incorporated association, also called an artificial person having a separate identity, common seal and perpetual succession.