HSC Board of Maharashtra – Organization of Commerce and management – Studies notes, study material,distinguish between, difference between Partnership Firm and Joint stock company .
|Sr. No||Basis of Difference||Partnership Firm||Joint Stock Company|
|1.||Meaning||Two or More persons come together for some business activity & agree to share profit & loss is called partnership firm||It is Voluntary association of individuals for profit having capital divided into transferable shares, the ownership which is the condition of membership|
|2.||Membership||Partnership firm owned by two or more and maximum 10 in banking and 20 in other firms||In private limited company minimum of numbers of members are 2 and maximum numbers are 50. In public limited company minimum numbers are 7 and no maximum number limit|
|3.||Formation||Formation is simple and less costly. only a partnership deed is required. Registration is optional [ except in Maharashtra ]||Formation involves many complicated legal formalities. Therefore it is costly legal formalities. Therefore it is tremendously time-consuming|
|4.||Liability||Liability of partners are unlimited.||Liability of every shareholder is limited to the extent of the unpaid amount on shares held by him|
|5.||Act||Partnership is controlled under partnership Act, 1932||Joint stock company is controlled under the Indian companies Act, 1956|