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GCSE Business · key term
A company whose shares can be offered to the public and whose shareholders have limited liability.
Used by Edexcel and OCR
Specification 2.1.1 · Paper 2
Revise: Financing Growth and PLC OwnershipA public limited company (PLC) can offer shares to the public, and its shareholders have limited liability. Their financial risk is limited to their investment rather than extending to personal responsibility for company debts. This protects shareholders, but does not remove the business risks faced by the company itself.
Paper 1
An incorporated business owned by shareholders, with limited liability, that can offer shares for sale to the general public.
Revise: Suitability of Ownership TypesFor an established private limited company, a key choice may be whether to remain private or become a public limited company, or plc. A plc can offer shares to the general public. A stock market flotation can give it access to a wider pool of investors and substantial finance for expansion.
A company whose shares can be offered for sale to the general public.
When evaluating PLC ownership, weigh access to substantial finance against flotation costs, public reporting and possible loss of control.
Do not assume every start-up should be a sole trader or every established business should become a plc.
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