Explain five advantages of a public limited company as a form of business.

      

Explain five advantages of a public limited company as a form of business.

  

Answers


kinyua
i) Wide range of capital/large capital base making it easy to expand/from the many
shareholders/accept examples of sources of capital as explanation.
ii)(Shareholders) have limited liability - owners can only lose the capital contributed/their private
property cannot be used to pay business debts.
iii)Specialized/efficient management since they can afford to employ qualified/experienced
managers.
iv) Shares/ownership is freely transferable without affecting the capital of the company/which
attracts investors/without seeking permission from other shareholders.
v) Continuity of the company even where there's death/insanity/bankruptcy/withdrawal of
shareholders.
vi) (Enjoys) economies of scale due to large size/operation/since most are large/accept examples
of economies of scale as a naming.
vii) Employees are efficient/(highly) productive since the company can afford motivation
(schemes)/which leads to high quality goods/services/accept examples of motivation as
explanation.
viii) Has a separate legal existence from the owner/(since) it can own property/enter into legal
contracts/agreements/sue in its own name.
565/2
ix) Shareholders participate in the running/operations of the company through making major
decisions (during the AGM).
monica20 answered the question on November 11, 2017 at 11:09


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