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Business strategy
Partnership Vs. Private Limited Company
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[QUOTE="Jasmine, post: 261751, member: 49159"] Well, I am not an expert in this topic, however, based on my understanding and reading, partnership business is basically a business run by friends and family. You can join with another person to create a partnership business. Sometimes there can be more than two partners. Even though there is no strict rule on how many people can participate, it is generally understood that if there are more than 4 partners, you will have to go for private limited business model. A partnership business can be converted into private limited company, by restructuring the business model. Interestingly, if a private limited company wants to grow even bigger, have more shareholders (thousands in numbers) it can go public and raise capital through IPO. However, before that can happen you need to get approval from the security and exchange board in your country. The basic difference between partnership business and private or public limited company is the size of capital. [/QUOTE]
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