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What are the differences between a private limited company and partnership forms of Business units?

Describe the differences between a private limited company and a partnership forms of Business units.

Answers


Maurice
(i) A private limited company does not allow the transfer of shares while partnership does not deal with shares but members' contribution.

(ii) In a private limited company, all members have limited liabilities while for partnership, one partner has unlimited liability except others who have limited liabilities.

(iii) A private limited company can be managed by one director or two if big while a partnership business is managed by active partners jointly.

(iv) A private limited company has a minimum of 2 shareholders to 50 members while for partnership, the business is owned by two or more persons with a maximum of 20 for ordinary partnership.
maurice.mutuku answered the question on July 6, 2017 at 05:47

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