SlideShare a Scribd company logo
1 of 4
Features
 Name public limited company is shortened to
plc
 Owners are called shareholders and receive
dividends
 Ran/Controlled by a Board of Directors
elected by shareholders
 Shares are bought and sold through the stock
market
Advantages
• Large amounts of capital can be raised from
the sale of shares to the public
• Investors will have limited liability meaning
PLCs will find it easier to attract shareholders.
• Lenders are more likely to give money as they
have greater confidence it will be paid back.
Disadvantages
 Costly to produce all the documents required
by the stock exchange
 Anyone can buy shares and therefore it is
possible for an outside interest to take
control of the company
 All of the company accounts can be inspected
and competitors may be able to use this
information to their advantage

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3. Public Limited Companies - Bus Man CFE Higher

  • 1.
  • 2. Features  Name public limited company is shortened to plc  Owners are called shareholders and receive dividends  Ran/Controlled by a Board of Directors elected by shareholders  Shares are bought and sold through the stock market
  • 3. Advantages • Large amounts of capital can be raised from the sale of shares to the public • Investors will have limited liability meaning PLCs will find it easier to attract shareholders. • Lenders are more likely to give money as they have greater confidence it will be paid back.
  • 4. Disadvantages  Costly to produce all the documents required by the stock exchange  Anyone can buy shares and therefore it is possible for an outside interest to take control of the company  All of the company accounts can be inspected and competitors may be able to use this information to their advantage