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Q: Define a company and explain how shareholders exercise control of the company business and directors conduct in the management of the companys affairs?
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Do firms compete if so why?

The simple answer is absolutely they do. The reason is simple any company is created to supply a product or service in one form or another. When a company opens or moves in to the same area of the market as another each will have to fight to create new, keep existing customers thus allowing the business to function and survive. If the company has shareholders then these shareholders expect a return on their investment and its the companys' board of directors that is tasked in doing just that. Competition is good for the consumer as it allows for and generates potentially improved services and and purchase savings. There are companys now who have had a monopoly of certain products and service and are now seeing new players in the market targeting their business line and customer base and are having issues dealing with the ferocious biding to take away their business.


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