Distinguishes between partnership, private and public limited company?

by • 06/01/2013 • GeneralComments (0)277

Q7. Distinguishes between partnership, private and public limited company?

Ans. We can distinguish between partnership, private and public limited company in the following ways:

 

LEGISLATION

(A) Partnership: Partnership act 1932]

(B) Private Co.: Company’s ordinance 1984

(C) Public Co.: Company’s ordinance 1984

 

MEMBERS:

(A) Partnership: Minimum 2 partners maximum 20

(B) Private Co: Minimum 2 partners maximum 50

(C) Public Co: Minimum 7 partner’s maximum according to shares issued.

 

LECAL ENTITY

(A) Partnership: No legal entity

(B) Private Cot Legal entity

(C) Public Co: Legal entity

 

LIABILITY

(A) Partnership: Unlimited liability.

(B) Private Co: Limited to the value of shares.

(C) Public Co: Limited to the value of shares purchased.

 

MANAGEMENT

(A) Partnership: Every partner may take an active part in the management.

(B) Private Co: Daily affairs of the company are carried on by the directors

(C) Public Cot Elected board of director.

 

AUDIT

(A) Partnership: Audit is not compulsory by law.

(B) Private Cot Audit is compulsory by law.

(C) Public Co: Audit is compulsory by law.

 

CAPITAL

(A) Partnership: Its capital is described in the partnership agreement.

(B) Private Cot Its authorized capital is mentioned in the memorandum of association.

(C) Public Co: Its authorized capital is also mentioned in the memorandum of association.

 

BOOKS MAINTENANCE

(A) Partnership: Legally there is no compulsion to maintain the book.

(B) Private Co: Books of account are properly maintained.

(C) Public Co:  Proper books of account and statutory books must be maintained.

 

TRANSFER OF SHARES

(A) Partnership: A partner cannot transfer his shares or interest to any other person without the consent of the partners.

(B) Private Co: Private Co. shares are not transferable.

(C) Public Co: Public company shares can be easily transferred without any problem.

 

SHARES SALE

(A) Partnership: Cannot sell shares.

(B) Private Co: It cannot offer the sale of shares.

(C) Public Co: It can sell its shares to public.

Feel free to add style and change some of www.college-homework-help.org the words, especially the verbs.
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