Public Limited Company

?

Public Limited Company

Advantages

  • Limited liability and the business has a separate legal identity
  • Production costs may be lower as firms can enjoy economies of scales
  • Due to their size they can dominate the market
  • Easier to raise finance as a result of its stock market listing
  • Greater scope for new investment
  • Can gain positive publicity as a result of trading on the Stock Exchange
  • Suppliers tend to be more willing to offer credit to public limited companies

Disadvantages

  • Must publish a great deal of financial information about its performance
  • Greater scrutiny of activities
  • Significant administrative expenses
  • Founders of the firm may lose control if their shareholding falls below 51%; this is because anyone can buy the shares
  • A stock exchange listing means emphasis may be placed on short term financial results, not long term performance
  • Very expensive to set up
  • Due to their size they are less able to deal directly with customers. Also due to their size they can be seen as inflexible

Evaluation

Comments

Memeulous-_-

Report

spread them

Bridgette Heathcote

Report

Public limited companies, also known as PLCs or plcs, are the most common form of business organization in the world. After reading this article, I have learnt how they work and how they differ from other forms of business ownership. I often contact crypto cpa denver colorado for consulting me in my business related queries and they satisfy me in best way.

Jaunita Collier

Report

I would say a Public limited company is a good thing. The main reason for this is that it allows small businesses to grow without having to worry about massive debts and commitments. You can go for mushroom capsules high as it is a high quality product. This is especially important because many people who start up their own business have no experience in the area of running a company and may not be able to get the finances they need in order to succeed.

Similar Applied Business resources:

See all Applied Business resources »See all Financial Planning and Monitoring resources »