Public Limited Company Functions | Assignment

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ASSIGNMENT TITLE: ESSAYS ON FUNCTIONINGS OF
PUBLIC LIMITED COMPANY
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Table of Contents
Essay on advantages and disadvantages of a Public Limited Company (PLC)..............................3
Essay on Product life cycle..............................................................................................................5
Essay on incentives that companies need to provide to their employees in order in to increase
commitment to work........................................................................................................................7
Essay on the differences between leadership and management......................................................8
Reference List..................................................................................................................................9
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Essay on advantages and disadvantages of a Public Limited Company (PLC)
A public limited company is a company whose securities are traded on a stock exchange and can
be bought and sold by anyone. Public limited companies are strictly regulated and are required to
publish their financial position in order to enable investors in determining the true worth of its
stock. Public limited company under United Kingdom Law, some commonwealth jurisdictions
and the Republic of Ireland is a limited liability company where a PLC can be either an enlisted
or non listed company in the stock exchanges of the countries (Ball and Shivakumar, 2005,
p.96). The ownership of a public limited company falls among Shareholders and the managing
Committee. In a joint stock company the members are known as shareholders and their share in
the ownership, control, and profits of the company is determined by their portions of shares.
Other than being a public limited company, the ownerships of a company be on the basis of: Sole
Proprietorships, partnerships, Government owned companies with either partial or full share in
the companies and franchising.
The advantages that a public limited company is that it can raise capital through public issue of
shares, in this respect the capital that could be raised is much larger than that of private limited
company as the company is able to reach to larger set of people, having a company enlisted in
the stock exchange can attract invest investment from hedge funds, mutual funds and other
institutional traders.
it also enables the company in its path of growth and expanding opportunities for itself as its is
able to attract or raise more funds for its projects rather than other companies it puts public
limited companies in an advantageous position to pursue new projects, new products or new
markets. market capital expenditure to support and enhance the business, make acquisitions, fund
development and research which at many times is very important for firms, pay off existing debts
(Marston,1996, p.482).
A public limited company also has the advantage of widening its shareholder base, this enables
the public limited companies in spreading the opportunities and risk that the company may face
among its shareholders. Obtaining capital from a wide range of investors has some advantages
over relying on one or two “Angel Investors" as plenty of private firms find it difficult to
facilitate growth. Another advantage of a public limited company is that the shares of a public
limited companies are more easily transferable than those of other equivalents, meaning
shareholders benefiting from liquidity. Venturing into the public domain provide the founders to
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