GCSE Business Studies Revision: Public limited companies (PLC) (With Mock Questions!)
Hello, brilliant students! 😊
Are you ready to dive into another key area for your GCSE Business Studies? Today, we’re focusing on Public Limited Companies (PLC). By the end of this post, you’ll feel confident in understanding what a PLC is and how it operates. Let’s go over everything you need to know to smash those exam questions!
What Is a Public Limited Company (PLC)?
A Public Limited Company (PLC) is a business that’s owned by shareholders, and unlike a Private Limited Company (Ltd), its shares can be bought and sold by the public on the stock market. This means it can raise large amounts of capital by selling shares, but it also comes with more scrutiny and regulation.
One of the key features of a PLC is limited liability. Just like in a Private Limited Company, shareholders only risk the money they’ve invested in the company, not their personal assets.
Key Learning Items 📝
When revising Public Limited Companies (PLC), you need to understand:
🌍 The basic structure of a PLC, including how shares are sold publicly on the stock market.
🌍 Limited liability and why it’s a huge advantage for shareholders.
🌍 The benefits of being a PLC, such as easier access to capital and higher public visibility.
🌍 The disadvantages, including the risk of losing control and facing strict regulations.
🌍 Real-world examples of well-known PLCs, like large multinational corporations.
What You Need to Demonstrate
To ace this topic in your exam, you should be able to:
1️⃣ Define what a Public Limited Company is and explain how it operates.
2️⃣ Discuss the advantages of being a PLC, especially around raising capital and growth.
3️⃣ Describe the disadvantages, like the risk of losing control and the costs of complying with regulations.
4️⃣ Compare PLCs to other business structures, such as Private Limited Companies (Ltd) or sole traders, and explain why a company might choose to go public.
Make sure you can confidently explain both the benefits and challenges of operating as a PLC!
Key Things to Remember Before the Exam
Before your exam, keep these key points in mind:
✨ Know the definition of a Public Limited Company and what makes it different from other business structures.
✨ Be confident in explaining limited liability and how it benefits shareholders.
✨ Understand the pros and cons of being a PLC—especially around raising capital and losing some control.
✨ Be ready to give examples of real-world Public Limited Companies and how they operate.
Keep these points in your mind, and you’ll be more than prepared for any questions that come your way! 💪
Mock Questions: Test Your Knowledge!
Let’s see how much you’ve learned! Try these practice questions to check your understanding of Public Limited Companies (PLC).
Q1 - What is a key feature of a Public Limited Company (PLC)?
a) Shares can only be sold to friends and family
b) Shares are available for the public to buy and sell on the stock market
c) The company has unlimited liability
d) It is owned by a single person
Q2 - Which of the following is an advantage of a PLC?
a) The company does not have to publish its financial accounts
b) Raising capital is easier as shares can be sold to the public
c) Shareholders have unlimited liability
d) The business is exempt from regulations
Q3 - What is a potential disadvantage of a PLC?
a) It is difficult to raise capital
b) The company can lose control if too many shares are sold to the public
c) Shareholders face unlimited liability
d) The business can only operate in one country
Q4 - What does “limited liability” mean for shareholders of a PLC?
a) Shareholders are responsible for all of the company’s debts
b) Shareholders can only lose the money they have invested in the company
c) Shareholders have control over all business decisions
d) Shareholders are guaranteed a return on their investment
Q5 - Which of the following businesses is most likely to operate as a PLC?
a) A small family-owned bakery
b) A multinational retailer listed on the stock exchange
c) A sole trader offering freelance services
d) A charity organisation
See more questions in our full Q&A Business Studies Booklet
Amazing job! Keep practicing, and you’ll be ready to tackle any exam question about Public Limited Companies. Stay positive, keep working hard, and know that you’ve got this! 📚🎉
Go shine in your exam, future business experts! 🌟😊