Limited companies Flashcards
1
Q
what is a PLC
A
Public limited company. they can sell shares on stock market
2
Q
what is a Ltd
A
Private limited company. cant sell shares on stock market
3
Q
PLC advantages
A
raise money from selling shares
produce at lower unit cost
easier to borrow from banks
4
Q
PLC disadvantages
A
too big and results in labour relations
risk of takeover
conflict of interests
5
Q
Ltd advantages
A
easy and cheaper to set up
shares can be sold to family
can only lose money they put in
6
Q
Ltd disadvantages
A
profits have to be shared
accounts arent private
not all decisions made by owners
