Lecture Notes Review: Business Structures and Share Price

Practice flashcards covering factors influencing share prices and the common and distinguishing features of PLCs and Ltds.

What factors commonly influence a company's share price?

The size of the business, its revenue, whether it is established or not, and the overall market conditions.

What do Public Limited Companies (PLCs) and Private Limited Companies (Ltds) have in common?

Both sell shares, are incorporated, offer limited liability to shareholders, and their shareholders can receive dividends.

What are some key characteristics of a Private Limited Company (Ltd)?

An Ltd can range in size, its shares are privately held making ownership details harder to judge, it has less risk of takeover, and is generally quick and cheap to set up.

What are some defining characteristics of a Public Limited Company (PLC)?

A PLC sells shares on the public stock market, typically has more shareholders and tends to be much bigger, has a highly transparent and tracked share price, requires a minimum share capital of £50,000, and faces a higher risk of takeover.