Why do companies still exist despite being inefficient?

Companies (according to my understanding) are when an individual gives up his right to make decisions in order to get capital and talent. But the trade-offs are inefficiency in decision making, misdirection of resources, infighting, and often a completely lack of accountability (no skin in the game). <br><br>In contrast, if you are the owner of a company, you are accountable for your actions, and you are incentivized to be the most efficient, and you are able to direct your resources in the most effective way because you have money on the line.<br><br>Why do companies still exist? Do they not go out of business? They can't possibly be competitive with someone who has his neck on the line.