Public Limited Company (plc)

Shares are available to the public via the Stock Market
There must be a minimum of 2 shareholders and £50,000 share capital
A Memorandum of Association and Articles of Association have to be produced
1. They state the company's details, responsibilities of directors and shareholders' rights
Owned by shareholders
Controlled by a board of directors
Advantages
1. Huge amounts off finance can be raised
2. Plc's often dominate their markets
3. Easy to borrow money from lenders due to their larger size
Disadvantages
1. Set up costs of company may be high
2. Must abide by the Companies Act
3. No control over who buys shares
4. Must publish annual accounts
Finance
Attachments:
- Sources of finance
1. Profits from previous years
2. Bank Loan
3. Selling shares to public
4. Bank Overdraft
5. Issuing Debentures
6. Government Grants
7. Debt Factoring
8. Trade Credit
Objectives
1. Maximise profits
2. Expand output
3. Grow
4. Higher sales revenue than previous
5. Dominate their market
6. Have a strong image

Resource summary

	Created by stewart_megan23 almost 11 years ago