Public limited company

  • Created by: megangore
  • Created on: 30-03-16 16:15
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  • Public limited company (PLC)
    • Definition
      • A company in which an unlimited number of shareholders contribute funds to the company in return for shares. shares can be sold on the stock exchange
    • Advantages
      • the business has limited liability
      • it is easier to raise finance as shares can be sold on the stock exchange and there are no restrictions on selling the shares
      • the business will still exist if one of the shareholders die
      • high degree of specialisation
      • it is an incorporated business
    • Disadvantages
      • the company is vulnerable to takeovers
      • shareholders receive some of the profit
      • annual accounts have to be published in full
      • may have communication and management problems due to size
      • there are a lot of complicated legal issues to overcome when forming and running a PLC


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