Merits and demerits of organization

An association where two or more persons come together for a

common business goal

COMPANY

Types

Public Limited Company

Private Limited Company

COMPANY

The quality of being particularly good or worthy, esp. so as to deserve praise

or reward.

MERITS

Merits of a Company

Large CapitalWal-Mart

Microsoft

Apple

Share TransferChange of ownership

Profit for Buyer

Long lifeNo single Ownership

Limited LiabilityShared loss

Efficient management

Shared

Different levels

Different owner and manager

Risk sharing

Democratic control

Board of directors

CEO

Demerits

A quality or characteristic deserving of blame or censure; a fault.

• Legal formalities

• No (lack of)

interest

• Late decision

DEMERITS

Costly organization

Increased taxes

Monitory rights

DEMERITS

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