Advantages of a Public Limited Company (Plc)

The first 200 words of this essay...

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