How is the definition of a Partnership firm different from that of a company with regard to continuity?
A partnership concern is dissolved on the retirement, insolvency, death of a partner, while in a company, the continuity of a company is not affected by the death or insolvency of a member. The members may go on changing but the company will not be affected.
Hence, by definition, a partnership has a limited existence while a company is created to last forever. A partnership automatically terminates unless re-constituted when a member dies, retires or becomes bankrupt. A company, unless it is wound up, never goes out of existence.