Limitations of company

The limitations include the difficulty in forming the company and lack of secrecy.

There is a separation between ownership and management. This leads to situations in which there is lack of effort and personal involvement on the part of the officers of a company. The large size of a company also makes it difficult for the top management to maintain personal contact with the employees, customers and creditors.

There are numerous regulations which also lead to a delay in decision-making.

There is also generally a conflict of interest which arises due to the various interests of different stakeholders.