4.5 Difference between Private Firms, Partnership Firms and the

Companies Point Private firm (soleproprietorship) Partnership firm(Partnership Act 2020) Company (Companies Act2063) Legal person The owner IS the business The firm collective — partners are the business A separate legal person Liability Unlimited Joint and unlimited (general rule) Limited (the shares' unpaid value) Continuity Ends with the owner Dissolution-prone (death, insolvency) Perpetual succession Transfer Sale of the business itself Reconstitution on partner- change Shares transferable Management The owner Every partner (mutual agency) Ownership-management separated (board and officers) Capital The owner's own The partners' pool The share market's reach (public issues) Regulation Minimal Light registration Registration + compliance (OCR, SEBON if listed, audits) the kirana shop the family trading firm Point Private firm (soleproprietorship) Partnership firm(Partnership Act 2020) Company (Companies Act2063) The Nepali faces the bank, the insurer, the listed manufacturer