Feature Sole Partnerships Co-operatives Companies Non-

Traders Governmental
Organizations
Membership 1 2 - 20 Unlimited Indefinite no. of ----
Shareholders stockholders
Financing Proprietor Partner’s Investment By stockholders No share
Capital by capital (grants
membership and
donations)
Legal Status Not a Not a Separate Separate legal entity Acts under its
separate separate legal entity own name
legal entity legal entity
Accounting Separate Separate Separate Separate economic Separate
Treatment economic economic economic entity economic
entity entity entity entity
Ownership Proprietor Partners Members Stockholders Incorporated
by an Act of
Parliament
Motive Profit Profit Self-help and Profit Service to
Service improve the
quality of life
Risk to owner Unlimited Unlimited Limited Limited liability Limited by
liability liability liability guarantee
Transfer of Sale of New Cannot be Changes with sale of Cannot be
ownership owner partnership transferred stock transferred
establishes is formed
a new where
business agreement
changes
Life Span Ends at the Ends with Indefinite Indefinite/Continuous Indefinite
wishes or changes in
death of partnership
owner eg.
admission,
retirement
or
dissolution
Raising Restricted Limited to Restricted by Unlimited capacity to Gov’t grants
additional by owner’s capabilities co-op’s ability raise funds and public
capital efforts of partners to attract support
new
members
Management Strictly by By partners Board of Board of Directors Board of
owner except the Directors Directors
sleeping/do independent
rmant of gov’t
partners
Regulations Subject to Governed Subject to Companies Act, Governed by
rules by the rules of co- International Statutes
governing Partnership operatives Accounting Standards
Act
 small
businesses
Profit Owner only Shared Dividends Dividends Used to
Sharing according to and further the
agreement patronage organization
refunds objectives