Commercial Applications
Answer
Two points of distinction between a company and a partnership are:
| S.No. | Basis | Company | Partnership |
|---|---|---|---|
| 1. | Legal status | A company has a distinct legal entity separate from its members. | A partnership has no separate legal entity different from its partners. |
| 2. | Liability | The liability of members is generally limited up to the face value of shares held or amount of guarantee given. | The liability of partners is unlimited, joint and several. |