public limited company Flashcards
1
Q
give the definition of a public limited company
A
usually a very big business that is able to offer its shares to the public and is owned by the general public
2
Q
give 5 advantages of a plc
A
- limited liability
- additional capital can be raised easily
- well-known organisations with a good reputation
- keep trading even if a shareholder dies
- has its own legal status
3
Q
give 5 disadvantages of a plc
A
- need at least £50,000 of share capital and legal paperwork needs to be produced
- publish its accounts every year
- unwanted takeovers are possible as shares can be bought by anyone
- separation of ownership and control
4
Q
who owns a plc
A
members of the general public and other businesses who have invested their money by buying shares on the stock exchange
5
Q
how will plcs aim to achieve growth
A
expanding their business by opening more outlets, producing a wider range of products or employing more staff
