company  is  not prefered by ram and shyam for starting a shoes manufacuring. why
 

Dear student, 

The company (joint stock company) may not be preferred because of the limitations associated with it.

• It requires a large number of formalities
• It lacks secrecy because information about the operations must be submitted to the registrar
• It requires following a large number of regulations. 
• It may lead to delay in decision making due to the hierarchical structure