No products in the cart.

Limitations of company organisation

CBSE, JEE, NEET, CUET

CBSE, JEE, NEET, CUET

Question Bank, Mock Tests, Exam Papers

NCERT Solutions, Sample Papers, Notes, Videos

Limitations of company organisation
  • 2 answers

Kamakshi Soni 3 years, 5 months ago

Company form of business organisation suffers from the following limitations : 1.Complexity in formation : The formation of a company is a very time consuming, expensive and complex process. It involves a lot of documentation, legal formalities, etc. 2.Lack of secrecy : The Companies Act has made it compulsory for a public company to provide a lot of information to the public as well as to the office of the Registrar of Companies from time to time. This makes it difficult for the company to maintain secrecy about its operations. 3.Impersonal work environment:Separation of ownership and management results in lack of motivation. Officers of the company may not take sufficient initiatives and personal efforts for the betterment of the company. Due to the large size of a company, it is very difficult for the top management to maintain personal contact with the employees, customers and creditors.

Gaurav Seth 3 years, 5 months ago

Company form of business organisation suffers from the following limitations :
1.Complexity in formation : The formation of a company is a very time consuming, expensive and complex process. It involves a lot of documentation, legal formalities, etc.
2.Lack of secrecy : The Companies Act has made it compulsory for a public company to provide a lot of information to the public as well as to the office of the Registrar of Companies from time to time. This makes it difficult for the company to maintain secrecy about its operations.
3.Impersonal work environment:Separation of ownership and management results in lack of motivation. Officers of the company may not take sufficient initiatives and personal efforts for the betterment of the company. Due to the large size of a company, it is very difficult for the top management to maintain personal contact with the employees, customers and creditors.

http://mycbseguide.com/examin8/

Related Questions

What is pre shipment finance
  • 1 answers

myCBSEguide App

myCBSEguide

Trusted by 1 Crore+ Students

Test Generator

Test Generator

Create papers online. It's FREE.

CUET Mock Tests

CUET Mock Tests

75,000+ questions to practice only on myCBSEguide app

Download myCBSEguide App