Advantages of a Public Limited Company (Plc) :: Business and Management Studies

Advantages of a Public Limited Company (Plc)Tesco is a public circumscribed company (plc). A lot of big companies gopublic. This is because unlike a private limited, a plc is able toadvertise the sale of shares and sell them to members of the generalpublic though the stock exchange.Advantages of a Public Limited Company (Plc) Shares mountain be advertised Shares can be sold through the stock exchange Large plcs may find it easier to borrow from banks Shareholders have limited liability Cheaper borrowing and bulk purchasingDisadvantages of a Public Limited Company (Plc) Going public can be expensive Some plcs can grow so large that they may become difficult to manage effectively Risk of takeover by rival companies who have bought shares in the companyA lot of companies go public. This is because of all the advantages ontop. The shares can be advertised so that means more throng will inferit and might invest in it. The shares can be sold through the stockexchange. This means it i s open to the public and its not only thepeople who get invited can by its share. Tesco can find it easier toborrow from banks because the banks know that they will get theirmoney back with there interest. There are several(prenominal) different types of owner ship. They are* sole traders* Parternership* Private limited companies* Public limited companies (Tescos)* Co-operative* Not for profit or a charity* FranchiseSole traderA Sole Trader is a business that is owned by only 1 person. They areresponsible for everything that goes on in the business. An precedent ofa sole trader is usually an off licence, taxi driver, sweet shop etc. Advantages of a Sole Trader--------------------------- Easy to set up no legal formalities of fees Own boss and can make all the decisions Keep all profits Can be set up with relatively little capital Personal contact with customers can encourage consumer loyaltyDisadvantages of a Sole Trader------------------------------ Owner have limited pecuniary resource and may find it difficult to borrow money from banks Owner have to work long hours and cannot afford to be sick The owner have untrammeled liability The owner must be a jack of all trades Small businesses are often unable to benefit from bulk purchase discounts. confederacy-----------A partnership is a business owned by two or more people. There can bea maximum of 19 people in a partnership. Forming a partnership is onesolution to overcoming certain disadvantages associated with running a