Distinguish between Partnership and a limited company
ANSWER
Partnership | Limited Company |
A partnership is the relation which subsist between persons carrying on a business in common with a view of profit. It may be general or limited. | This is a body corporate incorporated under the Companies Act and may be public or private. |
It is an unincorporated association. | All companies are legal entities or incorporated. |
Liability of members is generally unlimited | Liability of members is limited shares or guarantee. |
Consists of 2-20 members. | A private company consists of 2-50 excluding employees who are members. |
Property is jointly owned the partners. | Has capacity to contract and own property. |
It is a contract of the utmost good faith. | Companies are subject to the doctrine of Ultra vires. |
Every partner is an agent of every other and the firm. | A company must have directors, at least one for a private company and at least two for a public company. |
The firm name is registrable under the provisions of the Registration of Business Names Act. | All companies are incorporated registration in accordance with the provisions of the companies act. |
Has capacity to sue or be sued. | |
It has perpetual succession. |