Legal structure and aims & objectives

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  • Legal structure
    • Private Limited Company
      • Cannot publicly advertise shares
    • Public Limited Company (PLC)
      • Can advertise shares on Stock Exchange
      • Advantages
        • More sources of finance
        • Liquidity
        • Status
        • More capital
      • Disadvantages
        • Loss of control
        • Loss of confidentiality
        • Risk of failure
      • Divorce of ownership and control
        • Shareholders and managers are different groups of people
        • Different objectives
        • Conflict
  • Aims & Objectives
    • Growth
      • Internal
      • External
    • Innovation
      • New products on the market
    • Diversification
      • Move into new markets
    • Going international
      • New customers, markets, etc.
    • Ethical & Environental
      • Pollution
      • Renewable resources
      • Animal testing
      • Fair trade sources
        • Expensive
      • Environmentally friendly packaging
      • Benefits
        • Competitive advantages
        • Increase sales
        • Social benefits

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