Drawback=plc Flashcards
(6 cards)
1
Q
1
A
Public limited shares are sold to the public
2
Q
2
A
Therefore there is pressure from shareholders for short term profits
3
Q
3
A
So the business may neglect long term goals for short term returns
4
Q
4
A
To satisfy shareholders by using profit to pay regular dividends
5
Q
5
A
Neglecting investment into R&D and develop innovative products
6
Q
6
A
Product becomes less differentiated in long term
