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COMPANY, Advantages, Advantages, Disadvantages, Disadvantages - Coggle…
COMPANY
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Public Limited Companies
2.Growth and expansion opportunities: The value of being able to raise finance is in how it can be employed to serve the business. By having more finance potentially more readily available and on better terms than a private company
3.Widening the shareholder base and spreading risk: This may allow early investors in the company to sell some of their own shares at a profit while still retaining a substantial stake in the company.
1.Raising capital through public issue of shares: The most obvious advantage of being a public limited company is the ability to raise share capital, particularly where the company is listed on a recognised exchange.
Public Limited Companies
1.it is expensive to set up, requiring a minimum set up cost of £50,000.
3.there is a greater risk of a hostile takeover by a rival company as the company cannot control who buys its shares.
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