A
What does PLC stand for?
Public Limited Company
Who owns a public limited company?
Shareholders
Can a public limited company sell its shares to the public?
Yes
Name one advantage of a public limited company.
Limited liability, etc relate..
Name one disadvantage of a public limited company.
Loss of control, etc relate
What is meant by limited liability?
Owners are only responsible for what they invested
Why must public limited companies publish financial information?
To follow legal rules and stay transparent
What does it mean that shares do not need to be repaid?
The company doesn’t have to repay money from shares
Give two ways public limited companies can raise finance.
By selling shares and attracting public investors
Why might control be lost in a public limited company?
Anyone can buy shares and gain control
If a company wants to sell shares on a stock exchange, what type of company must it be?
Public limited company (PLC)
How does being a PLC help in raising large amounts of finance?
It can sell shares to many people
Explain how losing control of the business is a risk in a PLC.
New shareholders may outvote the original owners
How can the public access shares of a PLC?
Through the stock exchange
Why is it expensive for a company to become a public limited company?
Legal and administrative costs are high
Compare one advantage and one disadvantage of a PLC.
Advantage: Can raise money; Disadvantage: Must publish info
What could happen if a PLC does not publish financial information?
It could be fined or lose trust
Why might some private companies choose not to become public?
To avoid high costs or losing control
How does the requirement to meet legal obligations affect PLCs?
It increases time, cost, and paperwork
Suggest a situation where being able to sell shares to the public would benefit a company.
To raise money quickly for expansion
Evaluate whether all businesses should aim to become public limited companies.
No, not all want to lose control or pay high costs
Analyze the long-term effects of losing control in a PLC on its operations.
It can lead to poor decisions or takeovers
What are the ethical implications of a PLC hiding financial information?
It’s illegal and damages trust
Discuss whether the ability to raise large finance outweighs the disadvantages of a PLC.
Sometimes yes, sometimes no, it depends on goals
Create a scenario where becoming a PLC harms a business instead of helping it. Explain why.
It may lose control or change in a bad way