DIFFERENCE BETWEEN

SOLE PROPRIETORSHIP,
PARTNERSHIP &
JOINT STOCK COMPANY

Compiled By:-
Dharti Shah (46)
Dhrumil Shah (47)
Kavisha Shah (48)
Param Shah (49)
Shairavi Shah (50)
CONTENTS
 Sole Proprietorship
 Features of Sole Proprietorship

 Partnership

 Features of Partnership

 Joint Stock Company

 Features of Joint Stock Company

 Difference

 Examples for forms of organizations

 Bibliography

2
SOLE PROPRIETORSHIP

The sole proprietor is an unincorporated business with

one owner who has unlimited liability & is the sole
recipient of the profit or loss incurred by the firm.
It is the simplest form of business with least
government intervention. This is because of the fact
that it is not a legal entity.

3
FEATURES OF SOLE
PROPRIETORSHIP

• Unlimited liability
• No government intervention
• Quick decision making
• Flexible
• Single handed
• Secrecy maintained
• Sole receiver of profit/loss(if any)
• Can be operated from home
4
PARTNERSHIP

Section 4 of the Indian Partnership Act, 1932 defines

Partnership as the relation between persons who have
agreed to share the profits of the business carried on by
all or anyone of them working for all. The minimum
members in a partnership firm are 2 and maximum
10(Banking) & 20(General).

5
FEATURES OF PARTNERSHIP

 Sufficient Capital
 Divided liability

 Risk sharing

 Profit distributed

 Easy expansion

 Specialized skills present

 Profit motive

6
JOINT STOCK COMPANY

A Joint Stock Company has to go through a series of

steps before it commences, viz., Formation,
Incorporation, Capital Subscription & Commencement
of Business.
In case of public company, it has to complete all the
four stages whereas in case of private company, it can
start with its operations after the incorporation stage.

7
FEATURES OF JOINT STOCK
COMPANY

 Artificial person
 Separate legal entity

 Limited liability of members

 Perpetual existence

 Common seal

 Risk bearings

8
DIFFERENCE
Sole Joint Stock
Basis Partnership
Proprietorship Company
Registration
Minimal Legal Registration is compulsory,
Formation Formalities, optional, easy lengthy and
easiest formation formation expensive
formation process
Minimum
Private- 2
Minimum- 2 Public Company-
Maximum : 7
Members Single owner
(Banking- 10 Private Company-
Others- 20) 50
Public Company-
unlimited
Capital Large financial
Limited finance Limited but more 9
Contribution Resources
 Sole Joint Stock
Basis Partnership
Proprietorship Company

Unlimited and
Liability Unlimited Limited
joint

Partners takes Separation

Owner takes all
Control and decision, consent between
decisions, quick
Management of all partners is ownership and
decision making
needed management

Unstable,
More stable but Stable because of
business and
Continuity affected by status separate legal
owner regarded
of partners status
as one
EXAMPLES FOR FORMS OF
ORGANIZATIONS

 Sole Proprietorship- Ashoka, Gandevikar

Jewellers, C H Jewellers,

 Partnership- Neptune Trading Company

 Joint Stock Company- Reliance Industries Pvt.

Ltd., TATA, BSNL

11
BIBLIOGRAPHY

 Wikipedia.org
 Entrepreneur.com

 Investopedia.com

12