Public Limited Company (plc)

stewart_megan23
Mind Map by , created almost 6 years ago

Describing what a plc is, it's advantages and disadvantages, its possible finance and objectives.

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stewart_megan23
Created by stewart_megan23 almost 6 years ago
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Public Limited Company (plc)
1 Shares are available to the public via the Stock Market
2 There must be a minimum of 2 shareholders and £50,000 share capital
3 A Memorandum of Association and Articles of Association have to be produced
3.1 They state the company's details, responsibilities of directors and shareholders' rights
4 Owned by shareholders
5 Controlled by a board of directors
6 Advantages
6.1 Huge amounts off finance can be raised
6.2 Plc's often dominate their markets
6.3 Easy to borrow money from lenders due to their larger size
7 Disadvantages
7.1 Set up costs of company may be high
7.2 Must abide by the Companies Act
7.3 No control over who buys shares
7.4 Must publish annual accounts
8 Finance

Attachments:

8.1 Profits from previous years
8.2 Bank Loan
8.3 Selling shares to public
8.4 Bank Overdraft
8.5 Issuing Debentures
8.6 Government Grants
8.7 Debt Factoring
8.8 Trade Credit
9 Objectives
9.1 Maximise profits
9.2 Expand output
9.3 Grow
9.4 Higher sales revenue than previous
9.5 Dominate their market
9.6 Have a strong image

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