1.2 Public Limited Companies

What suffix is required by law for Public Limited Companies?

• gmbh

• inc

• ltd

• plc

Who controls a Public Limited Company?

• Shareholders

• Public

• Board of Directors

• CEO

Where can shares of a Public Limited Company be sold?

• Trade fairs

• Direct sales

• Stock market

• Private deals

What type of liability do shareholders of a Public Limited Company have?

• Unlimited liability

• No liability

• Limited liability

• Full liability

What is a major advantage of operating as a Public Limited Company in terms of capital?

• Less financial scrutiny

• Ability to raise more capital

• Government subsidies

• Lower taxes

What does the continuity of a Public Limited Company ensure?

• Flexibility in management

• Stability and confidence to investors

• Higher profits

• Global expansion

What is a disadvantage regarding the privacy of a Public Limited Company?

• Public trading issues

• Complete transparency

• Less financial privacy

• No privacy concerns

What can lead to a hostile takeover bid in a Public Limited Company?

• High dividends

• Low share prices

• Shares are offered for sale on the stock market

• Shares are not sold on the stock market

What is a consequence of the divorce of ownership and control in a Public Limited Company?

• Directors and managers control the company

• Shareholders control daily decisions

• No conflicts arise

• Shareholders have significant say on business decisions

What does the specialization in management typically lead to in a Public Limited Company?

• Decreased efficiency

• Simpler organizational structure

• Increased costs

• More efficient and productive operations