Differences between Partnership Firm and Joint Stock Company

Differences between Partnership Firm and Joint Stock Company

The following are some of the differences between a Partnership firm and Joint Stock Company.

1. Minimum No. of Members

Minimum number of members is two in a Partnership firm. Whereas in Joint Stock Companies, Minimum number is two in a private company and seven in a public company.

2. Maximum No. of Members

In a Partnership firm, maximum number of members is 20 in general business and 10 in banking firms. In a Joint Stock Company, maximum number of members is 50 in a private company and there is no maximum limit in public company.

3. Registration

Registration of a Partnership firm is not compulsory. Registration of Joint Stock company is compulsory.

4. Separate Legal Existence

Partnership firms has no separate legal existence. Partnership Firm and partners are the same. Joint Stock company has separate legal existence. It is an artificial person created by law.

5. Legislation

Partnership firm is regulated under the Partnership Act, 1932. Joint Stock Company is regulated under the Companies Act, 1956.

6. Capital

Huge capital for partnership firm cannot be secured. There is possibility of securing huge capital in case of Joint Stock company.

7. Liability

In a Parternship firm, liability of each partner is unlimited, joint and several. In a Joint Stock Company, liability of each shareholder is limited.

8. Transfer of Shares

Transfer of shares is not possible without the consent of all the partners in a partnership firm. In case of pubic limited companies shares can be transferred freely.

9. Management

Partnership Firm is managed by the partners themselves, in general. In a Joint Stock Company, management will be in the hands of elected directors.

10. Audit of accounts

Audit of accounts of Partnership firm is not necessary. Audit of accounts of Joint Stock Company is compulsory.

11. Flexibility

The objects of the Partnership firm can be changed easily. It is not so easy in case of a Joint Stock Company.

12. Perpetual succession

Partnership firm has no continuous existence. Joint Stock Company has continuous existence.

Leave a Reply




Recent Posts


Related pages


non purposive samplinggeographic filing system exampledefine in arrearsspecial damages definitionjobbers in stock marketinformal report definitiondays sales in receivables ratioretailing meaning and definitionwhat cif meansfactoringswhat is deductive and inductive approachenvironmental influences on pricing decisionschronological filingadvantages and disadvantages of traditional commercecalculation of capital employed formuladefine underwrittenhow to calculate break even ebitrbi objectives and functionswhat is the definition of cartelmarketing observational researchadvantages and disadvantages of open plan officedefine viresperils definitiontrade payable ratiocharacteristics of job costingbenefits of ecommerce to an organisationpreci writing samplesaccounting codification systemdrawbacks of budgetingadvantages and disadvantages of monetary systemmaster budget advantages and disadvantagesmethods of economics inductive and deductivepromisor meaningdefinition of uncontrollablepvf financecharles babbage theory of managementlabour rate variance formulavalid contract definitiondifference between hire purchase and installment systemmerger economics definitionwhat is the best forecasting methodmarginal costing accountingaccounting tickmarksdefine bidgetwhat is sinking fund provisionsources of diseconomies of scaledefine cheque and its featuresexample of prime costfeatures of perfect competition and monopolywhat is a nationalized bankdurable consumer goodadvantages and disadvantages of oligarchydescribe the caste systemmultistage random sampling definitiontypes of debentures pdfwhat is a nonprobability samplescientific management theory by f w taylorfutures advantages and disadvantagescolgate brand extensionobjectives of rbiwhat is a draweewhat is a breakeven chartintra vires and ultra virestypes of formal and informal groupsadvantages of the caste systemfactors affecting centralization and decentralizationbase stock method of inventory valuationsteps formation joint stock companyadvantages of job costingdisadvantages of borrowing moneymeaning of forfeitingsdr currency definitionpetty cash ledgervarious functions of rbispeculative stock definitiondishonor of cheque meaning