Public Limited Companies Explained
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📅 2/10/2026
What is a PLC?
A business owned by shareholders with limited liability.
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Advantages of PLCs
- Raise large capital by selling shares to the public.
- Shareholders have limited liability, protecting personal assets.
- Increased credibility and public profile from stock exchange listing.
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Disadvantages of PLCs
- Original owners may lose control to majority shareholders.
- High legal and administrative costs due to strict regulations.
- Pressure to focus on short-term profits over long-term growth.
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Examples of PLCs
- Apple Inc.: Tech giant listed on NASDAQ.
- Tesco PLC: UK supermarket chain on London Stock Exchange.
- Dangote Cement PLC: Nigerian cement manufacturer.
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Why Choose a PLC?
- Better than sole traders for limited liability and capital access.
- Superior to partnerships for shareholder flexibility and growth.
- Outperforms private companies in public credibility and liquidity.
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