public limited organisations

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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.

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