Can you please tell advantage or disadvantages of Campnay and Partnership ???
2006-08-23 22:30:24 · 5 answers · asked by Sonny 2 in Business & Finance ➔ Corporations
The main difference is that the company is a legal entity in the eyes of law whereas the partnership firm is not a legal entity. It follows that if the company becomes insolvent the shareholders personal properties would not be attached whereas if a partnership firm goes insolvent then even the partners personal assets shall be attached and sold out to pay the debts. The major disadvantage of a partnership is even one partner can dissolve the firm and bring to standstill the business of the firm. At the same time every partner has a right to take part in the management of the business whereas the shareholders of a company do not have any such right.
So... It all depends on whats the nature and scope of the activity of your organization. If you are planning to have a small business with few partners then partnership seems to be a good idea. Even a partnership between to professionals like engineers, lawyers, Chartered Accountants etc. is a good idea. If your business is big then certainly you should consider forming a company. Partnership is a double edged sword and in our case it has ruined our family business as one black sheep in the family can bring to halt the whole business of partnership.
2006-08-23 23:02:57 · answer #1 · answered by Naazneen D 1 · 0⤊ 0⤋
Go for limited liability company.
People can't be trusted these days. The biggest problem with partnership is unlimited liability, that is you may be asked to compensate from your personal assets if any of your partners defraud you.
2006-08-24 06:32:42 · answer #2 · answered by Anonymous · 0⤊ 0⤋
In company only 1 has to enjoy the profit and suffer the loss....
In partnership both the partners have to equally enjoy and suffer the profits and loss.......
2006-08-24 08:24:52 · answer #3 · answered by Akshatha 1 · 0⤊ 0⤋
Partnership is cheaper, but company has limited liability, meaning personal assests wont be taken if you go bust
2006-08-24 05:38:06 · answer #4 · answered by HotGurrlz 3 · 0⤊ 0⤋
Incorporation gives the individual more legal protection.
2006-08-24 05:33:32 · answer #5 · answered by Jon H 5 · 0⤊ 0⤋