IGCSE, A Level Business Student Forum

Q18 Analyse the advantages of a public corporation business. [6]

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

[KN]
[AN]
[AN+]

(kn) wider access to capital
(an) leading to faster production of products with good quality
(an+) satisfying the customer
(kn) able to borrow money from many sources
(an) meaning any business emergencies could be covered quickly
(an+) making the business more stable

[KN] Shared ownership
[AN] Public cooperatives are typically owned and governed by the community or a group of individuals with a common interest or goal.
[AN+] This collaborative approach ensures that the cooperative aligns with the collective interests and needs of its members.

[KN] Cost savings
[AN] Public cooperatives often aim to provide essential goods or services to their members at lower costs.
[AN+] any profits generated by the cooperative are typically reinvested or returned to the members, further enhancing their economic well-being.

[KN]Access to Capital Markets
[AN]This provides the company with significant financial resources to fund expansion and R and D
[AN+]this leads to higher profitability for the owners

[KN]Enhanced Visibility and Prestige
[AN]this heightened profile can lead to greater brand recognition, attracting more customers, partners, and potential investors.
[AN+]Public corporations often enjoy a higher level of prestige and are viewed as more established and reputable compared to private companies.

[KN] Risk Diversification
[AN]The ownership of a public corporation is distributed among a large number of shareholders
[AN+] This diversification of ownership helps spread risk and reduces the impact of financial setbacks on any one individual or group of investors.

[KN] Professional Management
[AN] Public corporations often attract experienced and professional management teams due to the scale and complexity of their operations.
[AN+] This can lead to effective corporate governance, strategic decision-making, and operational efficiency.

(Kn) more capital available (an) the corporation is able to gather funds from not only shareholders but also the government (an+) this helps them to carry out their daily activities and start nee ventures
(Kn) merit goods produced (an) not only are such goods underproduced helping in full filing the supply quota but they are also good for health (an+) such goods are underproduced and hence gap is filled by public corruption which helps to improve productivity due to better health

[KN] More Capital
[AN] Public limited companies can get a lot of shares by selling their shares in stock market
[AN+] Thus leading to growth of the firm as money would be available when needed

[KN] Employee Benefits
[AN] These companies can offer their employees special deals, like owning shares at a discount or getting bonuses in the form of company shares.
[AN+] This gives workers a chance to benefit when the company does well.

[KN] More profit can be earned.
[AN] Public corporation business can help earn a lot of profit by selling their shares in stock market.
[AN+] This leads toward growth of the business.

[KN] Ownership is shared.
[AN] Public corporation business are mostly owned by the group of individual's.
[AN+] This leads to growth of the business and more employees.

[KN] accesses capital
[AN] the business can collect high amount of capital while being corporation business
[AN+] this would lead to early expansion

[KN] Brand Recognition
[AN] public corporation has reached out to many customer base for capital
[AN+] so their business is already very well known to the public

[KN] Access to capital.
[AN] PC can raise capital by selling shares of stock to the public which will open the book of further growth incentives.
[AN+] Thus it can be used to fund further expansion opportunities, R&D etc.

[KN] Enhanced credibility.
[AN]PC are often seen more stable and trustworthy in the eyes of customers, suppliers etc which can boost company's reputation.
[AN+] Thus this will help attract more investors contributing to further success.

Kumail Alvi wrote: ↑Thu Nov 02, 2023 3:20 am [KN] Risk Diversification
[AN]The ownership of a public corporation is distributed among a large number of shareholders
[AN+] This diversification of ownership helps spread risk and reduces the impact of financial setbacks on any one individual or group of investors.

[KN] Professional Management
[AN] Public corporations often attract experienced and professional management teams due to the scale and complexity of their operations.
[AN+] This can lead to effective corporate governance, strategic decision-making, and operational efficiency.

both analysis points are just an extension/explanation to their respective knowledge points

Salman Khalid wrote: ↑Fri Nov 10, 2023 5:06 pm

Kumail Alvi wrote: ↑Thu Nov 02, 2023 3:20 am [KN] Risk Diversification
[AN]The ownership of a public corporation is distributed among a large number of shareholders
[AN+] This diversification of ownership helps spread risk and reduces the impact of financial setbacks on any one individual or group of investors.

[KN] Professional Management
[AN] Public corporations often attract experienced and professional management teams due to the scale and complexity of their operations.
[AN+] This can lead to effective corporate governance, strategic decision-making, and operational efficiency.

both analysis points are just an extension/explanation to their respective knowledge points

Thats the reason for analysis (to explain your KN)

[kn] since public corporation is under government it is easier to borrow money from different sources
[an]thus helping to respond quickly to business emergencies
[an+] making the business more stable
[an+] enhanced credibility as it is under the govt
[an] therefore making it more trustworthy and stable in the eyes of consumers and suppliers
[an+] increasing the amount of capital gained from investors

[KN]Low prices charged
[AN] these businesses are state owned therefore low prices are charged to avoid customer exploitation and increase consumption
[AN]hence this makes goods and services more affordable and increases sales for business

[KN]More employment opportunities
[AN]thus more people can get jobs leading to better SOLS

Kumail Alvi wrote: ↑Fri Nov 10, 2023 10:32 pm

Salman Khalid wrote: ↑Fri Nov 10, 2023 5:06 pm

Kumail Alvi wrote: ↑Thu Nov 02, 2023 3:20 am [KN] Risk Diversification
[AN]The ownership of a public corporation is distributed among a large number of shareholders
[AN+] This diversification of ownership helps spread risk and reduces the impact of financial setbacks on any one individual or group of investors.

[KN] Professional Management
[AN] Public corporations often attract experienced and professional management teams due to the scale and complexity of their operations.
[AN+] This can lead to effective corporate governance, strategic decision-making, and operational efficiency.

both analysis points are just an extension/explanation to their respective knowledge points

Thats the reason for analysis (to explain your KN)

???? no? its not, analysis is an impact of the knowledge point. im a student so confirm with sir afzal