unit 1 Types of ownership public limited companies Flashcards
what is a limited company
A limited company has special status in the eyes of the law. These types of company are incorporated, which means they have their own legal identity and can sue or own assets in their own right.
what are shareholders
The ownership of a limited company is divided up into equal parts called shares. Whoever owns one or more of these is called a shareholder.
what are not liable of
Because limited companies have their own legal identity, their owners are not personally liable for the firm’s debts.
what do share holders have
The shareholders have limited liability, which is the major advantage of this type of business legal structure.
what are public limited companies
A public limited company is usually a large, well-known business.
This could be a manufacturer or a chain of retailers with branches in most city centres.
where are shares traded on
Shares trade on the stock exchange. meaning that anyone can receive a share in the company
what happens if a 51% of shares goes to someone
they can legally be the owner of the company as they get majority vote
what is the minimum amount of shares that they must share
£50,000
what do they have after their name
plc
capital and plc
more capital can be raised on a plc than any another business ownership
what is good about a PLC
That easy to get funds from other sources to help finance
what is easy for someone to do
It is easy to take over business from original owners if they convince shareholders to give in shares
what is given to the public
their financial earnings via companies account
is it expensive to open
Yes - it is expensive and complicated to open up a public limited company
