SUITABILITY OF THE COMPANY
The corporate form of business is suitable for medium and large sized businesses. It may he established either as a private or public company. A private company is suitable for medium sized businesses and a public company for large ones.
A public company can he formed to run large-scale retail stores, as department stores, super markets, chain stores, and mail order houses. In addition, public utilities, textile mills, hospitals, manufacturing on large scale, banking and insurance businesses require a corporate form.