Cambridge O Level Business Studies · Syllabus 7115 · Understanding Business Activity
Public Limited Company
What is Public Limited Company?
An incorporated private-sector business whose shares may be offered for sale to the general public, giving it access to large amounts of equity finance. Its shareholders have limited liability, but it must publish detailed accounts, faces higher formation costs, and risks takeover and the separation of ownership from control.
This definition is part of the Understanding Business Activity chapter in Cambridge O Level Business Studies.
Common mistakes with Public Limited Company
- “A public limited company is owned by the government.” Correct A public limited company is a private-sector business owned by shareholders. A public corporation is the public-sector organisation.
Questions students ask about Public Limited Company
What is the difference between a public limited company and a public corporation?
A public limited company is a private-sector business owned by shareholders, whose shares may be offered for sale to the general public; it is not owned by the government. A public corporation is a public-sector organisation owned or controlled by government and run by an appointed board, financed mainly by government and often pursuing public-service objectives rather than profit. The word "public" means different things in the two names, and confusing them is a common error.