Public Limited Companies
- Created by: henriettabobmanuel
- Created on: 08-06-22 09:52
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- Public Limited Companies (plc)
- Ownership
- Shareholders who have limited liability
- A company where shares are offered to the public
- Advantages
- Shareholders have limited liability
- Large amounts of finance can be raised through the public sale of shares
- PLC's can easily dominate the market
- It is easy to borrow finance due to a PLC's size and reputation so less risk for banks
- Disadvantages
- Dividends are shared with many shareholders
- Control of the business can be lost as anyone can buy shares on the stock market
- Annual accounts have to be published
- Setting up a PLC is costly and complicated
- Examples
- Royal Mail Plc
- Cineworld Group Plc
- Rolls-Royce Holdings Plc
- Liability
- Limited liability
- Main documents
- Memorandum of Association
- Articles of Association
- Ownership
- Main Aims
- Dominate the market
- Increase market share
- Increase market value
- Public Limited Companies (plc)
- Ownership
- Shareholders who have limited liability
- A company where shares are offered to the public
- Advantages
- Shareholders have limited liability
- Large amounts of finance can be raised through the public sale of shares
- PLC's can easily dominate the market
- It is easy to borrow finance due to a PLC's size and reputation so less risk for banks
- Disadvantages
- Dividends are shared with many shareholders
- Control of the business can be lost as anyone can buy shares on the stock market
- Annual accounts have to be published
- Setting up a PLC is costly and complicated
- Examples
- Royal Mail Plc
- Cineworld Group Plc
- Rolls-Royce Holdings Plc
- Liability
- Limited liability
- Main documents
- Memorandum of Association
- Articles of Association
- Ownership
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