Public limited company is the large scale business that consists of 3 directors and 7 shareholders.

It is no new business practice for business entities to op to incorporate their businesses into companies limited by shares rather than continuing to perform their duties as sole prorietorships, companies limited by guarantee, limited liability partnerships (LLP) or partnerships. This makes investment in the shares liquid and an investor is not bound to remain with the company. Raising funds through the equity route means selling ownership stakes of the business.

3. There is continuity after the death of a member. Company can be taken over if a majority of shareholders agree to bid. Transferability of shares: The shares of a public company are freely transferable. Evaluation. They have to face limited risk. Limited liability: The liability of members of a public company is limited. Disadvantages of a Limited Liability Company Difficult to Raise Capital. This will also mean adding one more member (or more) to the list of members. A limited liability company generally has the same two sources of raising funds as a corporation: equity and debt.

The advantages include tax efficiency, separate entity and professional status. The limited company business structure is the second most popular in the UK. The most obvious advantage of being a public limited company is the ability to publicly raise share capital, particularly where the company is listed on a recognized exchange. These advantages and disadvantages have to be taken into account when analysing how the business operates and whether or not being a public limited company is suitable for the business.

Enjoy economies of scale.

Can raise more capital when compared to private limited companies; Have limited liability which means they cannot lose private assets in settlement of company debts. PUBLIC LIMITED LIABILITY COMPANY ADVANTAGES AND DISADVANTAGES ADVANTAGES OF A PUBLIC LIMITED LIABILITY COMPANY. PLC enjoys huge benefits like limited liability, transferability, borrowing capacity, and others. A complete breakdown of limited company advantages and disadvantages. As a sole trader business your only obligation is to produce a set of sole trader accounts and file a tax return each year paying any tax due. Complex administration: Compared to running a business as a sole trader the administrative affairs of a Limited company are more involved.

Advantages and Disadvantages of Public Limited Companies . Disadvantages of a limited company. Some disadvantages include complex accounts, public records and accountant fees.

Public Limited Companies have several advantages and disadvantages; Advantages.