There are many differences between partnerships and a proprietary company. The major difference between the two stems from how the businesses are seen by the law. The Federal government governs propriety companies, while partnership are under state government rule. The law protects propriety companies more than partnerships; a propriety company is a separate legal entity with that it gains a lot of protection. A propriety company can own property and can enter into contracts in its own name and can sue and be sued in its own name, while a partnership has to do it in the names of the partners. A propriety company has limited company, which means that the liability of the owners is restricted to the capital they hold in the company and that there personal possessions are not liable unless they are used as collateral. Also proprietary companies and partnerships deal differently with the...