Public Limited Company (plc)


Describing what a plc is, it's advantages and disadvantages, its possible finance and objectives.
Mind Map by stewart_megan23, updated more than 1 year ago
Created by stewart_megan23 almost 10 years ago

Resource summary

Public Limited Company (plc)
  1. Shares are available to the public via the Stock Market
    1. There must be a minimum of 2 shareholders and £50,000 share capital
      1. 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
        2. Owned by shareholders
          1. Controlled by a board of directors
            1. Advantages
              1. Huge amounts off finance can be raised
                1. Plc's often dominate their markets
                  1. Easy to borrow money from lenders due to their larger size
                  2. Disadvantages
                    1. Set up costs of company may be high
                      1. Must abide by the Companies Act
                        1. No control over who buys shares
                          1. Must publish annual accounts
                          2. Finance


                            1. Profits from previous years
                              1. Bank Loan
                                1. Selling shares to public
                                  1. Bank Overdraft
                                    1. Issuing Debentures
                                      1. Government Grants
                                        1. Debt Factoring
                                          1. Trade Credit
                                          2. Objectives
                                            1. Maximise profits
                                              1. Expand output
                                                1. Grow
                                                  1. Higher sales revenue than previous
                                                    1. Dominate their market
                                                      1. Have a strong image
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