GCSE AQA Business Studies Unit 2: Business Ownership Structures/Company Objectives

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PUBLIC Limited Companies (PLC)
Formed when a Private Limited Company is 'floated' on the stock market - anyone member of the public can buy shares in the company. Makes much more money available for the business in form of share capital.
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PRIVATE Limited Companies (LTD)
LTDs can only sell shares if all of the current shareholders agree. LTDs are NOT on the stock market.
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Public Limited Companies: Advantages
Have Limited Liability. Can raise much more capital by selling shares through the stock exchange. Increased capital allows company to grow and diversify. Status of company is increased so banks are more willing to lend money.
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Public Limited Companies: Disadvantages
The shareholders OWN the company, but dont actually RUN it day-to-day. Directors can make decisions that don't directly benefit the shareholders. Someone can buy enough shares to takeover the company.
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Changing Company Objectives
New & small businesses likely to be concerned with survival. As business grows, objective will change to become profitable. Objectives always lead to profit in long term. Companies sometimes have ethical and environmental issues in their objectives.
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Other cards in this set

Card 2

Front

LTDs can only sell shares if all of the current shareholders agree. LTDs are NOT on the stock market.

Back

PRIVATE Limited Companies (LTD)

Card 3

Front

Have Limited Liability. Can raise much more capital by selling shares through the stock exchange. Increased capital allows company to grow and diversify. Status of company is increased so banks are more willing to lend money.

Back

Preview of the back of card 3

Card 4

Front

The shareholders OWN the company, but dont actually RUN it day-to-day. Directors can make decisions that don't directly benefit the shareholders. Someone can buy enough shares to takeover the company.

Back

Preview of the back of card 4

Card 5

Front

New & small businesses likely to be concerned with survival. As business grows, objective will change to become profitable. Objectives always lead to profit in long term. Companies sometimes have ethical and environmental issues in their objectives.

Back

Preview of the back of card 5

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