Menu
- 6 Marks
Question
A partnership and a company are similar in some respects, but they are different in many ways.
Required:
Explain any THREE differences between a partnership and a company. (6 Marks)
Answer
i. A company has a separate legal personality upon incorporation, while a partnership does not have a separate legal personality.
ii. Partnerships do not require a specific legal formality for formation, while a company must be incorporated with necessary documents.
iii. The liability of company members is limited to their shareholding, but partners in a partnership have unlimited liability except in the case of limited partners.
- Tags: Business organization, Company, Differences, Partnership
- Level: Level 1
- Topic: Company Law, Partnership Law
- Series: MAY 2015
- Uploader: Joseph