Question

State the difference between partnership and company.

Answer 1

Answer:

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.

Answer 2

Answer:

The registration of the partnership firm is not compulsory whereas a Private Limited Company needs to get Compulsory Registration. ... In the Partnership Firm, a liability of the partners is unlimited whereas In case of Private Limited Company Liability is limited to the extent of shares held by every member.