· Company/ Corporation/ Joint stock: A
company is a voluntary association of people who contribute money to carry on
business.
Characteristics/Features of Partnership:-
§ It
is considered as a separate legal entity
§ It
comes into formation after all formalities under companies act 1994
§ Management
and ownership is completely separate
§ Capital
is raised through shares which are transferable
Pros & Cons of Company:-
§ Limited
liability of the shareholders/promoter
§ Can
easily raise capital
§ Have
unlimited life
§ Ease
of transfer of ownership
§ Formation
is not easy
§ Excessive
Government Regulation
§ Subject
to Corporate Tax and Dividend Tax (Double Taxation)
§ Delay
in Policy
§ Decisions
§
Control by a Group
