A joint stock company and partnership form of organisations can be compared as under:
Comparison # Joint Stock Company:
1. It has a separate legal entity, having its existence separate from its shareholders.
2. It may consist of any number of members.
3. Shares can be transferred to others without the consent of anybody.
ADVERTISEMENTS:
4. It invests according to memorandum and can’t do any other business activities.
5. Liability is limited.
6. The property of the firm is the property of the company.
7. Management is done by directors which are elected by shareholders.
ADVERTISEMENTS:
8. It has got certain obligations such as maintenance of accounts, preparing balance sheets, returns, registers and other information desired by the government, and on failure to do so are penalised.
9. Death or retirement of any of the shareholders does not affect the business.
10. Large capital can be collected.
11. Management is smooth and efficient.
Comparison # Partnership:
ADVERTISEMENTS:
1. It has no separate legal existence apart from its partners.
2. It may consist of maximum 20 members for nonbanking and 10 for banking business.
3. Shares cannot be transferred on sweet will without the consent of other partners.
4. It can do any business activities on the sweet will of partners.
ADVERTISEMENTS:
5. Generally unlimited liability.
6. The property is that of the individual partners.
7. Every partner is entitled to perform managerial activities.
8. No such obligations in this form of organisation.
ADVERTISEMENTS:
9. Business may suffer and sometimes may come to standstill.
10. Large capital can’t be collected.
11. Here control is divided between different partners and there may be difficulty and disagreement in management.