Professional Documents
Culture Documents
Types of Corporations
Group Members:
Chevannese Ellis
Syee Dassado
Joel Trowers
General Introduction
2. Rigidity- The amendments to their activities and rights can be made only by
parliament. This results in several impediments in the business of the
corporations to respond to the changing conditions and make decisions.
2) Widening the shareholder base and spreading risk - Offering shares to the public
gives the opportunity to spread the risk of company ownership among a large number
of shareholders.
3) Other finance opportunities- Banks and often financial institutions may be more
willing to extend finance to a public limited company, particularly one that is listed.
The company could also be in a better position to negotiate favorable interest rates
and repayments terms on loans.
Advantages Of Public Limited
Company(Conti.)
4)Prestige Profile and Confidence - Whether observed or not having ‘PLC' at the end of
a company name can add standing and prestige. There is a sense of status about the
public limited company its private company counterpart just doesn't quite have, which
can affect how the business is viewed. While often more imagined than real, this
perception of being more established, larger, or more powerful can affect the behavior
of customers, suppliers, and employees.
5) Separate legal entity - The separate legal entity between the company and its
owners is another attractive feature of a limited company.
Disadvantages of Public Limited Company
1. Regulation - Limited liability companies are subject to very comprehensive
legislative regulation. This makes the operation of the entity more tedious,
formal and restricts flexibility in terms of company management.
3. Perpetual Succession – The company continues to operate even in the case of death
or bankruptcy of any owners.
Disadvantages of Private Limited Companies
2. Capital is less than public limited since they quote their shares on the stock market.
https://en.m.wikipedia.org/wiki/Statutory_corporation
https://ebizfiling.com/blog/advantages-and-disadvantages-of-private-limited-com
pany/
https://smallbusiness.chron.com/advantages-being-private-company-20236.html
https://www.youtube.com/watch?v=xo3Y4yfec30
https://www.investopedia.com/terms/p/plc.asp
https://www.bbc.co.uk/bitesize/guides/zdc6mfr/revision/4
https://www.tutor2u.net/business/reference/public-limited-companies
The END~
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