Distinguish Between: Partnership Firm and Joint-stock Company - Organisation of Commerce and Management

Advertisements
Advertisements
Distinguish Between

Distinguish between: Partnership Firm and Joint-stock Company

Advertisements

Solution

Sr.

No.

Basis of Difference

 

Partnership Firm

 

Joint Stock Company

 

1.

 

 

Meaning

In this form of business organization two or more persons come together to undertake a business activity and share profits.

It is voluntary association of individuals for profit having capital divided into transferable shares, the ownership which is the condition of membership.

 

2.

 

Membership

There can be a minimum of 2 partners and a maximum of 10 partners in banking business and 20 in non-banking business.

The minimum of number of members are 2 in private limited company and a maximum of 50. In a public limited company, minimum number of members is 7 and there is no maximum limit.

 

3.

 

Formation

The formation is comparatively simple and less costly. Only a partnership deed is required to be prepared.

The formation involves many complicated legal formalities. Therefore it is tedious, costly legal formalities. Therefore it is a time consuming.

 

4.

 

Liability

 

The liability of partners is unlimited. It is joint as well as several (quit a few).

The liability of every shareholder is limited to the extent of the unpaid amount on shares held by him.

 

5.

Act

Partnership is controlled under Indian Partnership Act, 1932.

Joint stock company is controlled under the Indian companies Act, 1956.

 

6.

 

Registration

Registration of partnership firm is optional. (except in Maharashtra)

Registration of Joint Stock Company is Compulsory under India companies Act, 1956.

  Is there an error in this question or solution?

Video TutorialsVIEW ALL [1]

RELATED QUESTIONS

Business organization is a part of ____________  

The maximum number of partners for a firm carrying on banking business is .............. .


State Whether the Following Statement Are True Or False (Give Reason)

Division of work is not required in organising a function.


Multinational companies have a network of subsidiaries in  _________.


State the importance of privatisation.


Write short note on the following.
Merits of Joint Hindu family


State with reasons whether the following statement true or false.

The maximum number of members in a Joint Hindu family is 20.


State with reasons whether the following statement true or false.

The main purpose of a co-operative organization is to earn profit.


State with reasons whether the following statement is true or false.

The owner of the sole proprietorship is the sole decision maker of his business.


State with reasons whether the following statement is true or false.

A sole trading concern is easiest to form.


Write short answer of the following.
State the demerits of proprietorship.


Write short answer of the following.
State the features of Proprietorship.


Write short answer of the following.
State the point of choice of forms of business organization.


Long answer type question.
Define a Joint Hindu family firm. Explain its merits and demerits.


Long answer type question.
Define Joint Stock Company. Explain its merits and demerits.


Why is it important to choose an appropriate form of organisation?


Discuss the factors that determine the choice of form of organisation.


Share
Notifications



      Forgot password?
Use app×