Question

Differentiate between partnership and Joint stock company on the basis of liability.​

Answer 1

Answer:

In the case of a joint-stock company, the liability of shareholders is limited (except in case of unlimited companies) to the extent of the face value of shares or to the extent of guarantee, whereas, in the case of a partnership the liability of partners is unlimited. 5.

Answer 2

Partnership consist of having a unlimited liability where the shareholders (2 or more,but not very many) have to pay using their own money if the business suffers a loss or has an unexpected crisis.However,joint stock company have limited liability where the amount of money invested will be lost(as in utilized for the loss) thus prevents its shareholder from paying their own money.

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