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Question
Distinguish between Partnership Firm Joint Stock Company
Solution
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Sr. No. |
Basis of Difference |
Partnership Firm |
Joint Stock Company |
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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. |
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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. |
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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. |
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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. |
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5. |
Act |
Partnership is controlled under Indian Partnership Act, 1932. |
Joint stock company is controlled under the Indian companies Act, 1956. |
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6. |
Registration |
Registration of partnership firm is optional. (except in Maharashtra) |
Registration of Joint Stock Company is Compulsory under India companies Act, 1956. |
RELATED QUESTIONS
Indian Partnership Act was passed in the year...............................
Define 'partnership firm'. Explain its merits and demerits.
A Joint Stock Company can raise huge capital.
Write a word or a phrase or a term which can substitute the following.
A partner who gives his name to a partnership firm.
Long answer type question.
Define Joint Stock Company and explain its features.
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Group 'A'
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Group 'B'
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a. Public Company
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1. Father of Scientific Management
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b. Henry Fayol
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2. Corrective action taking.
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c. Controlling
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3. Commercial bank
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d. Reserve Bank Of India. (R.B.I.)
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4. Withdrawal after fixed period of time.
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e. Fixed deposit account
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5. Maximum 50 members.
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6. Central Bank
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7. Unlimited members
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8. Father of modern management
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9. Taking action against employees
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10. Withdrawal before the fixed period of time.
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Define Partnership Firm and explain its features
State with reasons whether the following statement true or false.
In a partnership the liability of every partner of a firm is unlimited.
Write short answer of the following.
Define partnership and state its important features.
Feature of Partnership Firm?
State Whether the Following Statement Are True Or False (Give Reason).
A partnership agreement cen be verbal or written.
State Whether the Following Statement Is True Or False (Give Reason).
The liability of the Karta is limited and that of coparceners is unlimited.
Explain the merits of partnership.
Explain the limitations of partnership.
Define the following business entities:
Partnership
