A private company is compromised between a public company and partnership. Explain.
A private limited company comprises of positive characteristics of both, public company and partnership form of business. It inhibits the feature of limited liability and personal control from partnership form of business. At the same time, it also inhibits the features of perpetual succession, separate legal entity etc from public limited company. Hence, we can say that a private company is a harmonious compromise between public limited company and partnership.