Plc Advantages And Disadvantages Flashcards
1
Q
Advantage 1
A
More capital can be raised than by a Private Limited Company as shares can be sold to the public.
2
Q
Advantage 2
A
The business benefits from Limited liability. if the business goes bankrupt, then the owners only lose the money they invested in the business.not their personal possessions.
3
Q
Disadvantage 1
A
Shares can be transferred easily which may lead to a takeover bid
4
Q
Disadvantage 2
A
The company’s full annual accounts must be published
5
Q
Disadvantage 3
A
The company may become too big and suffer with communication problems between management and employees
