Limitations of company

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

  2. 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.

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

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

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