Business Studies

>

GCSE

Business in the Real World

Question

What is the disadvantage for some Shareholders of a PLC?

1 year ago

·

1 Reply

·

767 views

F

Fanny Stamm

Public Limited Companies can have a lot of shareholders. However, some Shareholders may not own as many shares as others. What is the disadvantage of this?

1 Answer

Faraz H Profile Picture
Faraz H Verified Sherpa Tutor ✓

to infinity and beyond!

The main disadvantage of being a small shareholder is as the name says, you hold a fewer amount of shares than other individuals, or entities. This means that you may have limited rights as you are not a majority shareholder and may not be involved in key business decisions to discuss the direction the business will go. Usually small shareholders invest in businesses for profits rather than control

I'm available for 1:1 private online tuition!

Click here to view my profile and arrange a free introduction.

Think you can help?

More Business Studies GCSE Questions
Sherpa Badge

Need a GCSE Business Studies tutor?

Get started with a free online introductions with an experienced and qualified online tutor on Sherpa.

Find a GCSE Business Studies Tutor