10 Questions
What is the main advantage of a PLC in terms of raising capital?
Easier to raise capital by issuing more shares
Who are the primary shareholders in a PLC?
Financial institutions
What is the main disadvantage of a PLC in terms of administrative work?
Expensive and involves a lot of paperwork
What is the role of the chief executive in a PLC?
Responsible for carrying out the PLC policy and daily management
What does the term 'divorce of ownership and control' refer to in a PLC?
Separation between the owners and the managers controlling daily operations
What is the primary reason for a limited company to consider becoming a public limited company (PLC)?
To obtain further investment from a wider pool of potential shareholders
What is the minimum share capital required for a company to become a public limited company (PLC)?
£50,000
What is the purpose of issuing a prospectus for a public limited company (PLC)?
Inviting potential investors to purchase shares before flotation
What are some of the expenses involved in a company's transition to a public limited company (PLC)?
Insurance against unsold shares and advertising costs
What is the key difference between a private limited company and a public limited company (PLC)?
A public limited company can offer shares to the general public, while a private limited company cannot
Test your understanding of public limited companies with this quiz! Learn about the differences between private and public limited companies, the process of a ltd growing into a plc, the advantages and disadvantages of being a plc, and the concept of the divorce of control and ownership. See if you can define key terms and explain the transformation from private to public limited companies.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
