Limited liability

  Longevity

  Ability to raise capital

 

 Disadvantages:

 Reporting requirements

  Cost and complexity in setting the business

  Managerial demands

2. Disturbance handler – They managed to push its lowest fares from £99 to just £59. During this, they had to deal with pressure from all sides. The launch of Europe’s first low fares airline is bound to disrupt the balance of the market. Managers need to sort out the mess and try to maintain market balance.

3. Resource allocator – Break original air travel service tradition by redistributing the human and material resources to provide only essential light service operator.

1.Raising capital through public issue of shares

The most obvious advantage of being a public limited company is the ability to raise share capital, particularly where the company is listed on a recognised exchange.

2.Widening the shareholder base and spreading risk

Offering shares to the public gives the opportunity to spread the risk of company ownership among a large number of shareholders. This may allow early investors in the company to sell some of their own shares at a profit while still retaining a substantial stake in the company.

3.Growth and expansion opportunities

As well as share capital, a public limited company will often find itself in a better position when looking at other potential sources of finance.

Public limited company disadvantages

1.More regulatory requirements

To help protect shareholders, the legal and regulatory requirements for a public limited company are more onerous than for private limited companies. 

2.Higher levels of transparency required

Limited companies, whether public or private, have more of their details in the public domain, available via Companies House, than other business types. But the required level of transparency is much higher for public companies.

3.More vulnerable to takeovers

At worst, a company can become vulnerable to a hostile takeover if a majority of shareholders agree to a bid. With shares being freely transferable, a potential bidder can build up a shareholding in advance of launching a bid attempt.