Acca financial Accounting (FA) Study Text ac ca (FA)

partners can substitute for each other. 

Partners can introduce or withdraw capital at any time, provided that all 

the partners agree. 

 

 

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Introduction to financial reporting 

8

 

KAPLAN PUBLISHING

 

 

Comparison of companies to sole traders and partnerships 

The fact that a company is a separate legal entity means that it is very 

different from a sole trader or partnership in a number of ways. 

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Property holding

 

The property of a limited liability company belongs to the company. 

A change in the ownership of shares in the company will have no 

effect on the ownership of the company's property. (In a partnership 

the firm's property belongs directly to the partners who can take it 

with them if they leave the partnership.) 

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