public limited organisations
- Created by: abdul waheed shaikh
- Created on: 06-03-13 13:10
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- Public Limited Companies (plc)
- Disadvantages
- legal requirements concerning disclosure of information to shareholders and the public
- share prices subject to fluctuation-sometimes for reasons beyond business control
- risk of takeover due to the availability of the shares on the stock exchange
- cost of business consultants and financial advisers
- directors influenced by short term objectives of major investors
- legal formalities in formations
- Advantages
- continuity
- separate legal identity
- ease of buying and selling of shares for shareholders
- Limited liability
- access to substantial capital sources due to ability to issue a prospectus to the public and to offer shares for sale
- the ability to finance from outside the business rather using funds raised inside the company for expansion proposes for example.
- Disadvantages
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