Please enable JavaScript.

Coggle requires JavaScript to display documents.

business ownership (partnership (disadvantages (slower decision making,…

- - - - flotation is an expensive process and may not be successful
      - open to takeovers
      - no privacy (financial information is freely available)
      - stricter rules and regulations
    - - stock market allows for a larger pool of finance
      - enhanced reputation from PLC status
      - gains exposure though the stock exchange
      - PLC's tend to be large, stable companies meaning it is easier to access finance from banks
    - - Like a private limited company but shares can be advertised on the stock exchange
  - - - limited capital (the sale of shares cannot be advertised)
      - no privacy (anyone can view financial accounts)
      - legal costs (must pay to produce audited accounts each year)
      - shareholders have a voting right and expect dividends
    - - limited liability
      - more capital (shares can be sold)
      - separate legal identity (can sue and be sued)
      - continuity (if a shareholder dies then the company can continue operating as usual)
      - seen as more prestigious than a sole trader or partnership
      - difficult for hostile takeovers
    - - a company with a separate legal identity owned by shareholders