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Advantages of public limited company

Answer Text:
Advantages of public limited company
i) Wide range of sources of capital :It has access to wide range of sources of capital especially through the sale of shares and debentures
-They can also borrow money from financial institutions in large sums and have good security to offer to the lenders.
ii) Limited liability: Like private companies, public limited company’s shareholders have limited liability i.e. the shareholders are not liable for the company’s debts beyond the shareholders capital contribution.
iii) Specialized management: PLC’S are able to hire qualified and experienced professional staff.
iv) Wide choice of business opportunities: Due to large amount of capital a public company may be suitable for any type of investment
v) Share transferability: Shares are freely transferable from one person to another and affects neither the company’s capital nor its continuity.
vi) Continuity: PLC has a continuous life as it is not affected by the shareholders death, insanity, bankruptcy or transfer of shares