Which of the following are the differences between partnerships and companies? i. Partners are liable for all losses of the business ii. Only companies have share capital ii. Both partnership and companies pay tax on their profits iv. Company's affairs are managed by members A. i\& in B is \& ii C i. \( 4: \) iil D i\& u

To analyze the differences between partnerships and companies based on the statements provided: i. **Partners are liable for all losses of the business**: This is true for partnerships, as partners typically have unlimited liability, meaning they are personally responsible for the debts and losses of the business. ii. **Only companies have share capital**: This is generally true. Companies can issue shares and have share capital, while partnerships do not have share capital in the same way. iii. **Both partnership and companies pay tax on their profits**: This is not entirely accurate. Partnerships typically do not pay tax at the entity level; instead, profits are passed through to the partners, who then pay personal income tax. Companies, on the other hand, are taxed at the corporate level. iv. **Company's affairs are managed by members**: This statement is misleading. In a company, the affairs are typically managed by directors, not the members (shareholders). Members (shareholders) have voting rights but do not manage the company directly. Based on this analysis, the correct differences between partnerships and companies are: - i is true. - ii is true. - iii is false. - iv is misleading. Now, looking at the options: A. i & iii (incorrect, because iii is false) B. ii & iii (incorrect, because iii is false) C. i & iv (incorrect, because iv is misleading) D. i & ii (correct, both are true) The correct answer is **D. i & ii**.