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Explain five benefits of turning Private Limited Company into Public limited company

      

Explain five benefits of turning Private Limited Company into Public limited company

  

Answers


kinyua
i. Wide range of sources of capital to the company through the sales of shares and
debentures/easy borrowing from financial institutions due to good securities.
ii. Specialized management due to financial strength which enable it to hire qualified
personnel/experienced/trained skilled labourers.
iii. Wide choice of business opportunity which can be caused as a result of
mergers/absorption/acquisition.
iv. Easy transfer of shares as the process is easy.
v. Continuity of the business as it is not affected by shareholder’s
death/insanity/bankruptcy/transfer of shares.
vi. Employees motivation –a company may have share purchase scheme for employees which
encourages them to work harder towards the growth in value of companies share.
monica20 answered the question on October 14, 2017 at 10:05


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