Friday, March 2, 2007

A corporation and a partnership company

A corporation refers to a business started by more than one person that seeks to sell shares to investors. A partnership also has more than one owner and both profits and liability are shared. The main difference between a partnership and a corporation is liability.

The liability of each member is protected in a corporation as personal risk is limited by the investment. A partnership, like a sole proprietorship, does not offer limited liability protection.

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