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Partnership vs. Hindu Undivided Family (HUF) Business
Feature | Partnership | Hindu Undivided Family (HUF) Business |
Emergence | Arises from a contractual agreement (Except when HUF members enter a separate contract) | Arises from familial status, inherited business (Members can form a partnership through a contract) |
Membership | Both male and female members can join as partners (Female members can't typically join as HUF members) | Only male members are automatically included (Female members are typically excluded) |
Admission of New Members | Requires unanimous consent of existing members | New partners can be admitted with unanimous consent |
Female Membership | Females can join as full-fledged partners | Females typically excluded |
Partnership vs. Co-ownership
Feature | Partnership | Co-ownership |
Emergence | Arises from a contract among two or more persons | May arise from status, such as inheritance |
Business Operations | Invariably carries on some business | May or may not involve business operations |
Sharing of Profit and Losses | Invariably present | May or may not be present |
Mutual Agency | Each partner acts as an agent for others | No co-owner acts as an agent for others |
Transfer of Interest | Consent required from other partners for transfer | Can transfer interest without consent from others |
Claim on Surplus Assets | Can claim a share in surplus assets | Can claim division of joint property in specie |
Partnership vs. Club
Feature | Partnership | Club |
Business Operations | Invariably carries out some business | Formed for promotion of beneficial or social services |
Sharing of Profit and Losses | Invariably present | Invariably absent |
Liability | Unlimited liability of each partner | Limited liability of members to specific contracts |
Mutual Agency | Each partner acts as an agent for others | Members do not act as agents for each other |
Transfer of Interest | Consent required from other partners for transfer | Members can transfer interest without consent |
Claim on Surplus Assets | Can claim a share in surplus assets | Members do not claim share in club's assets |
Partnership vs. Company
Feature | Partnership | Company |
Legal Existence | No separate legal existence apart from partners | Separate legal entity distinct from shareholders |
Mutual Agency | Each partner acts as an agent for others | No member or shareholder acts as an agent for others |
Liability | Unlimited liability of each partner | Limited liability of shareholders in limited company |
Transfer of Interest | Consent required from other partners for transfer | Shareholders can freely transfer shares |
Dissolution | Dissolves upon death, retirement, or insolvency | Not dissolved by death or retirement of members |
Minimum Members/Shareholders | Minimum of 2 partners | Private company: minimum 2 shareholders Public company: minimum 7 shareholders |
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