Explanation:

A company may be defined as an artificial person, existing only in the eyes of the law with perpetual succession and having a separate legal identity, separate ownership and management. Major advantages of a company form of organization are members’ limited liability, transfer of interest, stable existence, scope for expansion, and professional management. Limitations of company are: complexity in formation, lack of secrecy, impersonal work environment, numerous regulations and delay in decision making, oligarchic management, and conflict of interests among different shareholders.