IGCSE, A Level Business Student Forum

Q7 Analyse the advantages of public limited company. [6]

Possible Structure:
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[KN] Access to a wide capital base
[AN] Public limited companies can raise capital by selling shares to the public through stock exchanges.
[AN+] This means they have access to a vast pool of potential investors and can attract a significant amount of capital.

[KN] Enhanced public trust and credibility
[AN] Public limited companies often enjoy a higher level of trust and credibility in the market compared to private companies.
[AN+] This can lead to easier access to partnerships, better credit terms, and a positive brand image, which can be valuable in attracting customers and top talent.

[KN]access to capital
[AN]they can achieve this by issuing shares
[AN+]this allows the company to fund expansion, research and development, and other projects

[KN]professional management
[AN]which can lead to more effective decision-making and operational efficiency
[AN+]which can help the company navigate complex business environments and make strategic decisions.

[KN] Easy access to capital.
[AN] PLCs can easily sell their shares in stock market and raise capital.
[AN+] This allows them to expand and easily raise capital.

[KN] Limited liability for shareholders.
[AN] Shareholders are responsible for their own debts so they can easily spend on business as much as they want without having tension about other shareholders debt.
[AN+] Their personal assets are not at risk, even if the company faces financial difficulties, thus their greater spending allows the business to grow.

[KN]easy to raise capital then private limited .
[AN]business can attract large amount of share holders which also help o create brand image.
[AN+]thus business can easily raise finance by atracting investors

[KN]liquidity of shares
[AN]share os public limited company are usually traded on a stock exchange which provide an opportunity to shareholder to bu or sell with ease .
[AN+]rapid growth of business and more investment on capital.

ayyan ali wrote: ↑Thu Nov 02, 2023 6:22 pm [KN]easy to raise capital then private limited .
[AN]business can attract large amount of share holders which also help o create brand image.
[AN+]thus business can easily raise finance by atracting investors

[KN]liquidity of shares
[AN]share os public limited company are usually traded on a stock exchange which provide an opportunity to shareholder to bu or sell with ease .
[AN+]rapid growth of business and more investment on capital.

The first further analysis is a summary of the knowledge point and analysis and so should be changed.

[KN] brand exposure
[AN] Publicly listed companies tend to have greater brand exposure and recognition.
[AN+] which can help attract customers, suppliers, and strategic partners.

[KN] expansion opportunities
[AN] Public limited companies have more significant opportunities for growth and expansion, as they can tap into a larger pool of investors
[AN+] Thus leading to efficient growth

(Kn) limited liability (an) the owners of the company are only limited to what they invest and wont be held accountable for any debt of the business (an+) this encourages investment as investors invest freely without fear of such risk

(Kn) more capital investment (an) since the public limited company is open to the general public it is able to get more shares sold and hence get more funds (an+) the more the funds available the easier it gets to carry out business activities and start new ones

[KN] additional capital
[AN] by selling shares to the public you can gain additional capital and increase investment in the business
[AN+] this would help them cover their basic expenses

[KN] Brand recognition
[AN] Public limited companies often have a higher degree of brand recognition due to their presence in the stock market
[AN+] making it easier to attract customers and investors.

[KN] There would be access to more capital.
[AN] More capital could be earning by selling their shares to the public.
[AN+] This leads to the growth of the business.

[KN] Brand name.
[AN] Public limited companies have a higher brand name as they sell shares to the public.
[AN+] This results in increasing the sales by attracting customers and investors.

[KN] Access to Capital.
[AN] PLCs can raise significant capital from the public through the sale of shares.
[AN+] Thus this can be used to finance growth and expansion.

[KN] Better Access to Credit.
[AN] Since they are seen as more stable and secure than small businesses so they are less likely to face problems from finance side.
[AN+] Thus this will create no liquidity issues and will ensure business growth in a profitable manner.

Syed Raza wrote: ↑Thu Nov 02, 2023 9:39 pm [KN] brand exposure
[AN] Publicly listed companies tend to have greater brand exposure and recognition.
[AN+] which can help attract customers, suppliers, and strategic partners.

[KN] expansion opportunities
[AN] Public limited companies have more significant opportunities for growth and expansion, as they can tap into a larger pool of investors
[AN+] Thus leading to efficient growth

both analysis points lack direction

[KN]access to capital
[AN]they can achieve this by issuing shares
[AN+]this allows the company to fund expansion, research and development, and other projects

[KN] Enhanced public trust and credibility
[AN] Public limited companies often enjoy a higher level of trust and credibility in the market compared to private companies.
[AN+] This can lead to easier access to partnerships, better credit terms, and a positive brand image, which can be valuable in attracting customers and top talent.

[kn] public limited companies have the ability to raise capital by Selling shares to the public
[an] therefore allowing them to raise a large amount of capital helping to operate the business
[an+] also helps in further expansion and growth of the business
[kn] Public limited companies have a perpetual existence
[an] which means that they can continue to exist even if one or more of their shareholders or directors dies or leaves the company
[an+] thus providing no risk to the shareholders of the business ending anytime soon due to death or retirement of any other member

[KN]More availability of finance
[AN] In a plc shares can be sold easily to unlimited people as shares of a plc are listed on stock market thus this can increase capital investment
[AN] leading to more expansion opportunities


[KN]Better brand image
[AN]Public limited companies are listed on stocks which makes them a larger brand this may increase public trust on them
[AN]As a result more markets may be captured by a plc