Advantages of Becoming a Public Limited Company
Question
Explain the advantages a business organisation may gain from becoming a public limited company. ➡️1 mark each for each of two advantages identified:
Category:
Firms & Industry
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Preview Answer
I. 🍃Introduction
- Brief explanation of the importance of finance for businesses
II. Advantages of being a large and sustainable business
- Explanation of how being large and sustainable can benefit a business
- Discussion of how these factors can contribute to the ability to raise finance
III. Limited liability as a benefit for businesses
- Explanation of limited liability and its importance for businesses
- Discussion of how limited liability can attract shareholders and lenders
IV. The ability to raise finance and its benefits
- Explanation of how raising finance can allow businesses to expand and take advantage of economies of scale
- Discussion of how not being dependent on current owners can benefit a business
V. 👉Conclusion
- Recap of the advantages of being able to raise finance and take advantage of limited liability.
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