public limited companies (PLC) Flashcards
What is a public limited company?
It is
Who owns the business?
The shareholders own the business
Number of owners?
Unlimited number of owners
Who controls the business?
The board of directors controls the business
Who finances the business?
The shareholders finance the business
What liability is there?
There is limited liability
Who keeps the profit?
The shareholders keep the profit
Continuity – what happens
if an owner dies?
If the business owners die, the company still exists and whoever owns the shares now continues with the business
Advantages:
There is limited liability
It can advertise its shares to the general public
Can raise large amounts of money
Expansion is easier
Easier to get investors
Better status in the eyes of some customers
Disadvantages:
There are more rules and regulations
