8 Analyse the disadvantages of public limited company. [6]

[Maham fatima]

[KN]Dilution of control
[AN]With a lot of shareholders and shares being listed on stock market,there is free entry and exit of shareholders so they may buy more shares and becomes owners of the business
[AN] As a result original owners may loose the business and if there are left with a very small no. of shares they might be pressurised to leave the company

[KN]Increased remoteness between managers and workers
[AN] In a plc there is a huge span of control which may lead to weak coordination hence resulting in ineffective communication
[AN]As a result,quality of output may get effected

[khadija nasir]

[kn] less control
[an] since public limited companies are large, there is difficulty in desicion making
[an+] inefficient and slow decisions made with compromisation

[kn] recquirement of multiple legal procedures
[an] obliged to make financial and operational data public
[an+] might reveal sensitive information to competitors putting the business at a disadvantage

[Sodais sajid]

KN: Less Control for Owners
AN: If you own a public company, you might slowly lose control because people from the public can buy shares and have a say in decisions
AN+: Thus can lead to ownership transfer as well
KN: Shareholders Want Money
AN: Shareholders usually want regular dividends which means the company might prioritise giving money to them instead of investing
AN+: Thus because of this the business might not have enough to expand

[hafsa kashif]

[kn] costs
[an] setting up a public limited company can be expensive as there are costs related to incorporation and registration
[an+] they also have to file up accounts which can be time consuming
[kn] dilution of control
[an] the shareholders have lesser control over day-to-day decision making
[an+] which can be frustrating for those who want to have a higher control over the business

[Abbas17]

(KN) more regulations and controls over them
(AN) due to this the interests of the shareholders are tried to be protected such as allowing them to see the publication of accounts of the business ( which anyone could see)
(AN+) meaning that even private information of the business is allowed to be for seen by anyone which could be negatively impact the business's reputation if not up to expectations.

(KN) selling shares is expensive
(AN) due to this the directors have to ask a specialist merchant bank to help them sell the shares, who charge a commission and other costs for their services,
(AN+) thus due to this it leads to an additional cost for the shareholders to sell their shares if they wish to do so.

[Areena]

KN]Control Loss
 [AN]The original owners of a company may give up a large amount of control over decision-making when it goes public. (AN+)This may be especially noticeable if the public purchases a sizable portion of the company's shares.

Increasing Rivalry (AN)A company that is publicly traded faces more competition since rivals can more easily adapt to its business tactics. (AN+)Therefore, for better output, businesses need to implement stronger strategies.