Distinguish between partnership and company.

Solution

Basis	Partnership	Company
Regulating Act	Indian Partnership Act, 1932	Companies Act, 195
Number of members	Minimum-2, Maximum 20 in ordinary business and 10 in banking business	Private company - Minimum-2; Maximum-50 Public company - Minimum-7; Maximum-Number of shares divided by lot of minimum number of shares
Liability	Unlimited	Limited
Audit of Accounts	Not mandatory	Legally compulsory.
Formation	No legal formalities	Fulfilling legal formality
Management	All partners are entitle to participate	Only members of Board of Directors
Financial Resources	Can raise limited resources	Can raise large financial resources
Winding up	Can be dissolved at will.	Cannot be wound up at will.
Transfer of Interest	Not possible without the consent of all partners.	Freely transferable except in case of private company.