Business Studies

>

GCSE

Business in the Real World

Question

Why would a Company become a Public Limited Company?

1 year ago

·

2 Replies

·

819 views

H

Hosea Dietrich

Give an explanation as to why a company would want to become a public company, trading shares on the stock exchange. What would be some advantages to this.

2 Answers

Faraz H Profile Picture
Faraz H Verified Sherpa Tutor ✓

to infinity and beyond!

There are many reasons why a company would become a public limited company (PLC). Some of them include but not limited to:

  • the ability to raise additional finance (usually through the stock market)
  • achieving economies of scale by lowering operating costs
  • greater publicity attracting customers
  • the ability to make the company look more prestigious
  • the opportunity to make acquisitions by offering shares to the shareholders of the target company

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

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

A lot of companies would become Public to enable quicker expansion. One advantage of this would mean an increase in income and thus more profits.

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