Public Limited Companies.

The first 200 words of this essay...

B.4 Public Limited Companies

These are the largest type of privately owned enterprises in the UK. Many started as private limited companies and were floated on the Stock Exchange. Floated is the term used when a public limited company is launched. A company must have more than £50,000 before it can go public. The benefits for the owners are as follows:

1) The major benefit is vastly increased capital as many thousands of people or organisations may buy shares in the company

2) Some public companies can be quite small - there only needs to be a minimum of two directors and shareholders

3) Very large public companies can often operate more cheaply than small companies as they operate on economies of scale. For instance, they can mass-produce goods for sale and buy in bulk to save money

4) If the company is successful the shares will increase, which will increase the overall value of the company.

The drawbacks for the owners are as follows:

1) A public company must be registered as such with the Registrar of Companies and has many external regulations to comply with

2) An annual general