Public Limited Company

Topics: Limited company, Corporation, Stock market Pages: 2 (631 words) Published: January 12, 2012
In many eyes, the most appropriate form of ownership for a form or a business would be a public limited company or a PLC. A public limited company always tends to be a larger type of company. This is generally a good thing. In a large company it is almost always more stable. The most important advantage of having a large company is more specialized workforce. For example, in a small company people tend to multitask rather than be specialized. For example, in a restaurant, a small company may order the staff to be the cashier and serve the food. On the other hand, in a large company can afford to have a man on the cashier, three waiters, a doorman etc.

Also, the shares can be bought and sold by the public in the stock market. This means that one does not need to consult the owner to sell the shares while on the other hand in an LTD the shares are usually are sold between friends and with the owner’s permission. A PLC is a relatively safe form of capital for a business; this is very important and is a major advantage in a company.

There are many advantages in having a public limited company, among those pros are that there is limited liability among members. This means that a person’s financial liability is set to a fixed sum. Second of all, if one of the owners dies, the company continues running. This is not the case in partnerships and many other forms of ownership. This is good because there isn’t another problem in the business, except one of the owners dying of course. Another amazing advantage is that a PLC can raise huge amounts of money from only selling shares to the public. This is very important because if the company needs funds, they could just sell the shares and raise an enormous amount of money. If that isn’t enough funds then the PLC should ask a financial institution, such as a bank or a private lender, to loan them a sum of money because those institutions are much more willing to lend to PLC’s because of their size.

Another important...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Sole Trader Companies
  • Whether Facebook Can Benefit from the Changing Between Private Limited Company to Public Limited Company Essay
  • Private Limited Company Essay
  • Company Law Essay
  • Essay on Limited Companies
  • Formation of a Company Essay
  • The Public & Private Sector-1compare and Contrast.Doc Essay

Become a StudyMode Member

Sign Up - It's Free