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Advantages of a Public Limited Company (Plc)

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Introduction

Tesco is a public limited company (plc). A lot of big companies go public. This is because unlike a private limited, a plc is able to advertise the sale of shares and sell them to members of the general public though the stock exchange. Advantages of a Public Limited Company (Plc) * Shares can be advertised * Shares can be sold through the stock exchange * Large plc's may find it easier to borrow from banks * Shareholders have limited liability * Cheaper borrowing and bulk purchasing Disadvantages of a Public Limited Company (Plc) * Going public can be expensive * Some plc's can grow so large that they may become difficult to manage effectively * Risk of takeover by rival companies who have bought shares in the company A lot of companies go public. This is because of all the advantages on top. The shares can be advertised so that means more people will see it and might invest in it. The shares can be sold through the stock exchange. This means it is open to the public and it's not only the people who get invited can by its share. Tesco can find it easier to borrow from banks because the banks know that they will get their money back with there interest. ...read more.

Middle

Many small to medium sized business trade as private limited companies. This is also the path often followed by sole traders and partnerships when they wish to expand their operations but still retain control of the business. Advantages of a Private Limited Company (Ltd) * The sales of shares can raise capital * Owners have limited liability * The company has a separate legal identity from its owners * Owners can appoint directors on their record of achievement and business knowledge * Capital raised from the sales of shares never has to be repaid Disadvantages of a Private Limited Company (Ltd) * Founder members may lose control * Shares cannot be advertised or sold on the stock exchange * Setting up can be expensive because of legal requirements * Financial information must be published * An annual general meeting of shareholders must be held each year. Public Limited Company (Plc) A lot of companies go public. This is because of all the advantages on top. The shares can be advertised so that means more people will see it and might invest in it. The shares can be sold through the stock exchange. This means it is open to the public and it's not only the people who get invited can by its share. ...read more.

Conclusion

A charitable trust can be set up for any of the following purposes: * To relieve poverty e.g. Oxfam * To advance education e.g. secondary schools * To protect the environment. (Advantages and disadvantages need 2 b dun) Franchise This is an increasingly popular form of a business organisation. The parent company (franchiser) sells the right to use its name to an independent operator called the franchise. (Advantages and disadvantages need 2 b dun) Limited Liability Companies A company is different from a sole trader and a partnership because a company has to get registered before it can start to operate. Once all the paper work is completed and approved, the company becomes as legal body. A company is owned by shareholders and managed by directors who run the company in the shareholders' interest. The shareholders are not personally liable for the company's debt. If the business fails their loss is only the amount they invested into the company. There are two forms of limited companies, Private limited and public limited. Unlimited liability -The type of liability in which the owners of a business (usually a sole trader or a partner) are responsible for all business losses. Limited Liability -The type of liability in which a shareholder of a private or public limited company is only liable for the amount of money invested in the business. Gagan Rai Harish AVCE Business Unit 1 (Business at Work) E1 ...read more.

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