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British Airways ownership. British Airways is a public limited company, which means that they are owned by shareholders who have limited liability.

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Introduction

British airways ownership British Airways is a public limited company, which means that they are owned by shareholders who have limited liability. A public limited company are large organisations whose shares are traded and brought on the Stock Exchange. Which explains how the business is run, and what it intends to do in the future. The difference is that they can have as many shareholders (an individual investor who owns part of a limited company) as they want and each share holder can sell their shares to whoever they want. Shares can be advertised; also Share trading in the UK is mainly done through the London Stock Exchange. With a public limited company you have to start of with �50,000. ...read more.

Middle

This means it can develop and expand the business more easily than a private limited company, which doesn't have the financial resources. It can also benefit from economies of scale, because it is a large-size organisation. This means that it will be able to buy in bulk, borrow more cheaply, and specialise. All of this should reduce costs and improve efficiency. Another advantage is Public limited companies can also produce goods at lower unit cost. Disadvantages for British airways * The drawback for being a public limited company is that there are many regulations to complete before opening a public limited company. Accounts (and problems) are public knowledge meaning that the public gets to know about the gain and loses in profit. ...read more.

Conclusion

on short term objectives of creating a profit, whereas it might be better to work on longer term objectives, such as growth and investment. * Threat of takeover, because another company can buy up a large number of shares because they are traded publicly (can be sold to anyone). If they buy enough, they can then persuade other shareholders to join with them to vote in a new management team. * Public limited companies are limited which means that they are incorporated; they can sue or own property in their own right. Their owners are not personally liable for the firm's debts (limited liability). This is the source where I got my information about the advantages and disadvantages of British Airways being a public limited company. http://www.bbc.co.uk/schools/gcsebitesize/business/aims/limitedcompaniesrev2.shtml ?? ?? ?? ?? Prableen Jaswal ...read more.

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