Welcome to Study Room, where you can ask questions and receive answers from other members of the community.

0
Advantages of a public company

Solved 1 Answers 63 Views Business Studies

1 Answer

0
Best answer

Advantages of a public company.

  • The business has its own legal identity and can own assets/property.
  • Easy to raise large amounts of capital for growth through the issuing of shares to the public.
  • Shareholders have a limited liability for the debt of the company/Shareholders may only loose the amount which they invested.
  • Competent and knowledgeable directors may be appointed by shareholders.
  • Attracts small investors as shares can be transferred freely/easily.
  • No limitation on the number of shareholders, so growth/expansion is not limited.
  • Additional capital can be raised by issuing debentures to the public.
  • The public has access to the company's financial information as financial reports have to be published annually.
  • The company keeps its shareholders/stakeholders regularly informed about its performance/share values/future plans.
  • The company continues to exist, even if shareholders die/retire/sell their shares.
answered by
...