What is a key advantage of a company?

A key advantage of a company is the distinction between ownership and decision-making. This characteristic allows for more structured management within the organization. In a company, shareholders (owners) typically invest capital and have ownership interests but do not manage the day-to-day operations. Instead, they appoint directors or managers to make decisions on behalf of the company, which helps in efficiently utilizing resources and pursuing business objectives without owners getting involved in everyday management. This separation can lead to more professional management practices, as those in charge of decision-making are often experienced individuals dedicated to the company's success.

Options related to unlimited liability and lack of capital suggest drawbacks rather than advantages. Unlimited liability concerns unincorporated businesses where owners are personally responsible for debts, which puts their personal assets at risk. Lack of capital similarly indicates a limitation in funding, making it difficult for a business to grow or operate effectively. Cost-effective operations can be subjective and depend on the specific circumstances of a company, but it is not a defining advantage in regards to ownership and management structure. Thus, the correct answer highlights a structural benefit that distinguishes companies from other types of business entities.