Professional Documents
Culture Documents
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͞Organizational Structure is the formal system of
task and authority relationships that control
how people coordinate their actions and use
resources to achieve organizational goals. The
principal purpose of organizational structure is
one of control: to control the means used to
motivate people to achieve these goals.͟
- Gareth R. Jones
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4. pegal status No separate legal No separate legal Separate legal entity Separate legal entity
existence existence
5. piability of Unlimited, full risk Unlimited, joint and pimited pimited
Members several , risk shared
6. Financial pimited capital suitable Pooling of capital, parge capital, suitable Very large capital,
capacity & for small business suitable for medium size for medium scale suitable for large scale
suitability business operations
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9. Business Secrecy Perfect secrecy no Secret limited to Secret shared by Secrets shared with
audits or reports partners, no audit or members, audit and public, audit and
reports compulsory reports compulsory reports compulsory
10. State regulation Practically none, full Very little, sufficient ?onsiderably, Yxcessive, no
and flexibility flexibility of flexibility limited flexibility, flexibility
operations privileges, and
exemptions
11. Transferability of At will With mutual Restricted as Article Freely transferable
interest consent of Association
12. Tax burden pow at small level of pow at small level of pow at medium level pow at high level of
income, progressive income, progressive of income, flat rate, income, flat rate,
rate rate double taxation. double taxation
13. Stability or Unstable, life fully pess stable, may be Perpetual existence. Perpetual existence.
continuity dependent on the dissolved by death,
owner insolvency, etc. of a
partner
14. Winding up At will At will Under the Act Under the Act
15. Governing Act General law The Partnership Act, The ?ompanies Act, The ?ompanies Act,
1932 1956 1956