Podcast
Questions and Answers
What is the main advantage of a PLC in terms of raising capital?
What is the main advantage of a PLC in terms of raising capital?
- Easier to raise capital by issuing more shares (correct)
- Minimal paperwork and administrative work
- Banks are more willing to lend money without collateral
- Limited liability for shareholders
Who are the primary shareholders in a PLC?
Who are the primary shareholders in a PLC?
- Government entities
- Financial institutions (correct)
- Individuals
- Public businesses
What is the main disadvantage of a PLC in terms of administrative work?
What is the main disadvantage of a PLC in terms of administrative work?
- Minimal paperwork and administrative work
- No need to prepare annual accounts
- Expensive and involves a lot of paperwork (correct)
- No need to provide information to shareholders
What is the role of the chief executive in a PLC?
What is the role of the chief executive in a PLC?
What does the term 'divorce of ownership and control' refer to in a PLC?
What does the term 'divorce of ownership and control' refer to in a PLC?
What is the primary reason for a limited company to consider becoming a public limited company (PLC)?
What is the primary reason for a limited company to consider becoming a public limited company (PLC)?
What is the minimum share capital required for a company to become a public limited company (PLC)?
What is the minimum share capital required for a company to become a public limited company (PLC)?
What is the purpose of issuing a prospectus for a public limited company (PLC)?
What is the purpose of issuing a prospectus for a public limited company (PLC)?
What are some of the expenses involved in a company's transition to a public limited company (PLC)?
What are some of the expenses involved in a company's transition to a public limited company (PLC)?
What is the key difference between a private limited company and a public limited company (PLC)?
What is the key difference between a private limited company and a public limited company (PLC)?