What are the major Differences between partnerships and limited companies?

Question

Can anyone help with this question. Much appreciated.

Thank you

Answer 1

partnership is a business owned by one or more individuals or corporations (in any combination). Within a partnership, each partner is potentially liable for all debts of the partnership. If the partnership carries on business under a name, that name must be registered under The Business Names Registration Act.
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a limited company is a legal entity that has a separate legal existence apart from its shareholders and directors. It is sometimes also referred to as a ‘limited company’. Since it has a separate legal existence from its shareholders and directors, they are generally not personally liable for the debts of the corporation beyond the amount contributed. Although it is the shareholders which ‘own’ a corporation, it is the directors who manage the day-to-day operations

Answer 2

The above answer is very correct. Plus you need to add that Partnerships usually don't last. One or the other will try to dominate and take over, or not share properly in the work, the duties and responsibilities of business, or there will inevitably be disagreements that cause a breakup of the partnership. There are quite often competing goals, conflicting strategies on running the company, which are all not apparent at the time the business partnership is started, but realized later on. Business partnerships are almost always temporary, even if started with the best intentions.

Ltd Companies or Corporations generally last, because of better tax benefits, better professional management systems or personnel. etc...Quite often, but not always, the management is "dispensible", managers and directors are replaceable, if its in the best interest of the LTD company / Corporation. Usually the LTD company outlives the term of employment of the managers.

Answer 3

There are many differences between public ltd co and a private ltd co. i wud point down few. :-one major difference is that a public ltd company can get it listed in the stock exchange where as a private ltd company cannot. so a public ltd company can raise necessary capital directly from the market where as private ltd co cannot do so. two is that minimum no of members for an public ltd co is 7 where as it is 2 for pvt ltd co. A Pvt co can be converted into public ltd company by filing necessary doc with Registrar of companies.