7 Analyse the advantages of public limited company. [6]

Ch 4 Types of business organisation

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khadija nasir
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Re: 7 Analyse the advantages of public limited company. [6]

Post by khadija nasir »

[kn] can raise larrge amounts of capital
[an] since theres no limit to an amount of shareholders, selling and advertising shares to the public is done
[an+] attracts investors and increases business size

[kn] low chances of risk involved
[an] since theres a large no of shareholders, risk is spread all throughout
[an+] ensures stable running of the business
Sodais sajid
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Re: 7 Analyse the advantages of public limited company. [6]

Post by Sodais sajid »

KN: Access to Capital
AN: Public limited companies can raise funds easily by selling shares to the public through the stock market
AN+: Thus providing a large source of capital for expansion
KN: Liquidity for Shareholders
AN: Shares of a public company can be easily bought and sold on the stock market
AN+: providing liquidity for shareholders who can convert their investment into cash
AN:
Abbas17
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Re: 7 Analyse the advantages of public limited company. [6]

Post by Abbas17 »

(KN) shareholders have limited liability
(AN) due to this if the company failed, the creditors can't force the shareholders to sell their possessions to pay the debts, as the shareholders liability is limited to that what they invested and hence they would only lose that investment,
(AN+) thus due to this it saves shareholders from losing a lot of money , and encourages them to buy more shares due to this.

(KN) it's a incorporated business
(AN) thus due to this it has a separate legal identity to the owners, meaning that even if one of the partners died the business still continues,
(AN+) thus due to this it assures the continuity of the business even if one of the partners dies, meaning that the business won't have to close or fail necessarily in the future.
Areena
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Re: 7 Analyse the advantages of public limited company. [6]

Post by Areena »

KN] Availability of a large capital base [AN] Public limited businesses can raise money by using stock exchanges to sell shares to the general public. (AN+) This implies that they can draw in a sizable amount of funding and have access to a large pool of possible investors.

[Kn]opportunities for growth and expansion
 [AN] Because they can access a wider pool of investors, public limited companies have more substantial opportunities for growth and expansion.
[An+]Consequently, leading to efficient growth
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