Business Studies

Distinguish between the following:
Partnership and Joint Stock Company.


SOLUTION
The following are some of the differences - 

1. Minimum No. of Members

A 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, a maximum number of members is 20 in general business and 10 in banking firms. In a Joint Stock Company, a 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 have no separate legal existence. Partnership Firm and partners are the same. A joint Stock company has a 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

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