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Advantages of Becoming a Public Limited Company


Explain the advantages a business organisation may gain from becoming a public limited company. ➡️1 mark each for each of two advantages identified:


Firm Behavior and Strategies

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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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