Question
Why business secrecy is not maintained in company form?

Answer

  • Company has to prepare accounts as per the provision of law, they are audited and by the end of the year they are sent to the shareholders.
  • From the view point of accounts secret is not maintained. Every year $13$ of the directors have to retire from the Board of Directors.
  • So, secrecy is not maintained from directors too. There is lack of unity between management and owner. That is why business secret is not maintained in company form.

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