Question

Distinguish between the following.
Partnership firm and Co-operative society.

Answer 1

Partnership firm: It is governed by the Indian Partnership Act 1932. Partnership is a relation between two or more persons who agree to share the profits of a business carried on by all or any of them acting for all. All the partners of the firm have unlimited liability. The minimum number of partners is 2 and the maximum is 100. It is established with the motive to earn profit. It is not compulsory for the firm to get itself registered.

Co-operative Society: It is compulsory for it to get registered under the Co-operative Societies Act 1912. It is established with a motive of welfare of its members and elimination of the middlemen. The minimum number of member is 10. The capital is raised by the contribution made by the members.