Business Studies & Accounting Teacher
  • Home
  • IGCSE
    • 0450 Business Studies
    • 0452 Accounting
  • O-Level
    • 7115 Business Studies
    • 7110 Principals of Accounts
  • News
    • Business News
  • A-Level
    • 9609 Business
  • Online Books
  • Student Forum
  • Home
  • IGCSE
    • 0450 Business Studies
    • 0452 Accounting
  • O-Level
    • 7115 Business Studies
    • 7110 Principals of Accounts
  • News
    • Business News
  • A-Level
    • 9609 Business
  • Online Books
  • Student Forum
No Result
View All Result
Business Studies & Accounting Teacher

Disadvantages of business as public limited. [8]

Afzal Shad by Afzal Shad
April 16, 2022
in 0450 Business Studies, 7115 Business Studies, 9609 Business
0

IGCSE /AS Business Students can answer the 8 Marks Analysis question with the given possible structure. The current question states the Disadvantages of business as public limited company. Please note, the answer is just a sample and may not be used as a standard but is shared for generation of idea only. The following question is referred from 0450_s21_in_22 and 0450_s21_qp_22 (Answer to the questions).

Disadvantage 1:

Leads to Dis-economies of Scale; The performance of business deteriorates with the greater size of it.

Explanation:

With the increasing sizes, there are greater chances of wastage, spillage, lack of coordination and communication issues. Such dis-economies will lead to lower performance /efficiency. [An] Even though the production method of TT would be cost effective but there may be a limited demand of the products in Country Z as the high earning groups with potential demand of toys would be less than 10% of the whole population [App]. In case of competitors entrance in market, this issue will further escalate.  [An+]

Disadvantage 2:

Lesser control of ownership; as the shares are openly floated in stock exchanges.

Explanation:

As anyone can buy shares from the stock exchange there are chances of hostile takeovers or at-least the a greater chunk of shares may be bought by another company. [An] In such case, the decision will be influenced by that company, leading to deviation from the core objectives of TT for example the current objective of expansion may be replaced /influenced with the profit earning objective. [An+]  TT has developed a brand image over the years with possible affiliation with the brand, in case of hostile takeover it may be a setback for Tandeep of loosing his business control. [App]

Important points to remember:

While attempting Paper 2 Style Questions or the questions with Case Study as a background, there is a requirement to “Apply” the analysis according to the given scenario of the question. For example in this question Advantages of business as private limited, you can see both styles of [App] in explanation, one give at the end and another given during the analysis. You are free to use any style as far as application is there.

If you are looking for sample answers to the IGCSE Business Studies, O Level Business Studies, AS Level Business and A Level Business subjects; Feel free to use our Student Forums to ask and discuss the questions.

Previous Post

Advantages of business as private limited. [8]

Afzal Shad

Afzal Shad

IGCSE/A Levels Business & Accounting Teacher
Working at DHAI Education System, Islamabad

Past Experience: (17+ Years | Since 2004)
Corporate Sector Managerial Experience with National Logistics, Tehzeeb, Media Houses & Educational Sector.

Recent Posts

  • Disadvantages of business as public limited. [8]
  • Advantages of business as private limited. [8]
  • Business Crash Course – IGCSE /O Levels
  • A Level Crash Course (2022)
  • Exam Style Answers (A Level Business)

Categories

0450 Business Studies 0452 Accounting 7110 Principals of Accounts 7115 Business Studies 9609 Business A-Level Business News Featured IGCSE Mathematics News O-Level Online Books Uncategorized World

Afzal Mahmood Shad

Working at DHAI Education System, Islamabad
Past Experience:(17+ Years | Since 2004)
Corporate Sector Managerial Experience with National Logistics, Tehzeeb, Media Houses & Educational Sector.

Our Categories

  • 0450 Business Studies
  • 0452 Accounting
  • 7110 Principals of Accounts
  • 7115 Business Studies
  • 9609 Business
  • A-Level
  • Business News
  • Featured
  • IGCSE
  • Mathematics
  • News
  • O-Level
  • Online Books
  • Uncategorized
  • World

Our Sister Concerns

  • Past Papers Shop (Students Resources)
  • Pakistan Teachers Club
  • KaysKit (Online Fashion House)

I am here to Help:

  • WhatsApp | Instagram | Facebook

© 2021 Afzal Shad - Powered by Pakistan Teachers Club.

No Result
View All Result
  • Home
  • IGCSE
    • 0450 Business Studies
    • 0452 Accounting
  • O-Level
    • 7115 Business Studies
    • 7110 Principals of Accounts
  • News
    • Business News
  • A-Level
    • 9609 Business
  • Online Books
  • Student Forum

© 2021 Afzal Shad - Powered by Pakistan Teachers Club.