What is the primary advantage of a public limited company (PLC)?
Question
What is the primary advantage of a public limited company (PLC)?
Solution
The primary advantage of a public limited company (PLC) is its ability to raise capital through the sale of shares to the public. This can be a significant advantage for a business that needs to grow quickly or invest in new projects or assets.
Here are the steps to explain this:
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A public limited company (PLC) is a type of business entity that offers its shares for sale to the general public. This is typically done through a stock exchange.
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The main advantage of this is the ability to raise large amounts of capital. By selling shares, a PLC can generate funds that can be used for various purposes such as expansion, paying off debts, or investing
Similar Questions
What is the primary advantage of a public limited company (PLC)? A. Limited liability B. Tax benefits C. Easy formation D. Unlimited liability
Disadvantages of being a PLC include:
Select advantages of Public Companies below. (you can select more than one option) Question 2 options: Ability to raise large amounts of capital for large-scale business Easy marketability of shares Ability to gain unlimited liability for members through separate legal entity concept Company unaffected by changes in shareholders (perpetual succession) Shareholders need not take an active part in management of company
One of the differences between the public and private limited companies is
a public limited company is run by:
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