Public limited company
- Created by: megangore
- Created on: 30-03-16 16:15
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- Public limited company (PLC)
- Definition
- A company in which an unlimited number of shareholders contribute funds to the company in return for shares. shares can be sold on the stock exchange
- Advantages
- the business has limited liability
- it is easier to raise finance as shares can be sold on the stock exchange and there are no restrictions on selling the shares
- the business will still exist if one of the shareholders die
- high degree of specialisation
- it is an incorporated business
- Disadvantages
- the company is vulnerable to takeovers
- shareholders receive some of the profit
- annual accounts have to be published in full
- may have communication and management problems due to size
- there are a lot of complicated legal issues to overcome when forming and running a PLC
- Definition
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