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Compare and contrast corporations and partnerships?

Compare and contrast corporations and partnerships?

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Expert Solution

Corporation Partnership
A legal entity seperate from its owners Partnership does not have legal existence.
It is owned by the stock holders It is owned by the partners.
It is formed under state laws with an MOA and AOA It is formed by an agreement between the partners.
Its ownership and management is different. It is managed by the partners.
It can raise money from general public by shares issue. It cannot raise money from public.
The liability of stock holders is limited to their share in the corporation. The liability of partners is unlimited.
Corporation will have a common seal as its signature. Partnership does not have a common seal.
Corporation should be dissolved only by the stockholders approval or if necessary governments approval. Partnership can be dissolved by the mutual decision of partners.
Corporation has to pay taxes as a seperate individual. A Partnership does not pay taxes.

ekkarill92 answered 1 year ago
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