Advantages/disadvantages of a partnership forming a plc.

Here is a list of the advantages/disadvantages of a partnership forming a plc.

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  • Created by: Sean
  • Created on: 05-04-13 22:14

Advantages/disadvantages of a partnership forming a plc.

Advantages

  • More capital (available from shares)
  • More expertise (from board of directors)
  • More sources of finance e.g. Debentures
  • Limited liability
  • Easier to borrow (due to size)
  • More purchasing power

Disadvantages

  • No longer in control of business
  • Profits have to be shared between people/shareholders
  • Legal requirements have to be met/must publish accounts/must hold AGM
  • May not recieve any dividends
  • Shares may lose value
  • Expensive to set up

Evaluation

Partners must think hard about becomming a plc as not only is there advantages but also disadvantages.

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