Business Ownership Structures

Question 1

What is a PLC

Answer 1

Public Limited Company

Question 2

State 4 advantages of a PLC

Answer 2

Limited liability
Raise capital by selling shares through a stock exchange
Growth and diversification
Status increased - more likely to be given a loan

Question 3

State 3 disadvantages of a PLC

Answer 3

Owned by shareholders but run/controlled by the directors
If someone buys enough shares then they could take over the business - if they can convince other shareholders to sell
Shareholders want to make profit - make it harder for the company to pursue other aima

Question 4

State 4 ideas of business aims as a business grows

Answer 4

New/small concerned with survival
As it grows be more concerned with profit
Larger - dominating the market, expanding overseas - overall more profit -through those aims
From consumer pressure - ethical and deal with environmental issues

Question 5

State 3 features of a PLC

Answer 5

Can only sell shares if all shareholders agree
Formed when an LTD if floated on the stock market - anyone can buy shares
That means that more capital is available so the business can expand