Identify Company challenges and benefits

Profits are shared in the form of dividends and are calculated according to the number of shares held by each shareholder.

There may be a conflict between the owners of the company and the directors who have been appointed to manage the company.

Company shares can be bought, sold and transferred which means that companies have continuity of existence

There large expenses for setting up the company in terms of legal fees, taxes and consultants.

Companies can attract skilled and specialised employees who can help a company grow and develop.

State-owned companies often lack in terms of their service delivery. They are often not profitable.

A company has its own legal status, trading name and owns its assets.

Companies have more opportunities to pay less tax that are not available to other types of business

Companies require a lot more capital to start up.