A company form of organization is the most preferred choice of people in business. It is very convenient. It allows the people in business to take advantage of the legal status of the company and limited liability concept so that it is possible to carry on business, admit more people and run it effectively. They can take more risks than that they would take if they run their business in the form of a sole proprietorship or partnership. They realize that the company that carries on the business is different from themselves.