Business Studies - Business Ownership Structures

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Public Limited Companies can sell shares to anybody

  • When a private limited company has met certain minimum requirement (e.g. the number of shareholders and its record of profitability) it can choose to convert itself to a public limited company
  • Private limited companies can only sell new shares if all of the current shareholders agree.
  • A public limited company is formed when a private limited company is 'floated' on the stock market, allowing any member of the public to buy shares in the company.
  • This means there is much more money available to the company in the form of share capital, which allows the firm to expand greatly.
  • Many of the world's largest companies are public limited companies - British ones…


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