Public Limited Company (Plc) Flashcards
What is the definition of a Public Limited Company (PLC)
An incorporated business (has a separate legal identity to its business owners) that is able to sell shares on a stock exchange. Owners benefit from limited liability.
What are the advantages of a Public Limited Company (PLC)
Limited Liability
Potential to raise more funds from selling shares to the public
Separate legal identity
Prestige of having PLC title
Press coverage in result of stock market listings
What are the disadvantages of a Public Limited Company (PLC)
Financial record are publicly available
Divorce of ownership and control (managers not acting in interests of shareholders)
Strict and complex regulatory requirements
Risk of takeover
Media scrutiny
Pressure for short term financial goals rather than long term performance
