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Q: What type of business structure can consist of thousand of shareholders that select a board of directors to oversee company performance?
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Who runs plc?

The board of directors run the PLC ( public limited company) however the people who own the business are the shareholders. The shareholders vote on the board of directors.


Why do you have shareholders?

we have shareholders in a business to make profit and to grow the business.we also have shareholders in a business in order to invest,it also brings expansion.


Dividend Payments?

Corporations have shareholders that invest in their business and expect a portion of the business's profits in return. Dividend payments are part of the shareholders' returns for investing in a business. Corporations have a choice to either reinvest their profits in shares, or keep a portion of the profits and paying shareholders dividends.


Why are the shareholders the owners of the business?

because they buy the stock


Who are the main stakeholders in a company?

Depending on the structure the stakeholders are the owners. A sole proprietor is usually a small business and the owner/operator is the stakeholder. Partnerships have more than one owner and there is no real limit on the number of partners there can be, though liability may be limited to as few as 1 partner in the group. Most common is a corporation, this is a legal entity to itself and is owned by shareholders. Anyone with an investment in the business (stock) is a stakeholder. Corporations come in 2 main categories Private and Public. Private corporations are owned by private shareholders and the stock is not available to be bought, these companies do not have to publish their profits and performance. Public corporations are owned broadly by many shareholders and the stock is traded publically (Wall Street) - shareholders are paid divideneds and the stock values fluctuate with performance, these companies must publish annual reports of profits and performance. Additionally any creditor of a business is deemed to have a stake in the company's success - if they cannot repay their debts the creditor companies may fail as well. This aspect is true but won't score you any points on an exam - usually the stakeholder is limited to ownership.

Related questions

Who runs plc?

The board of directors run the PLC ( public limited company) however the people who own the business are the shareholders. The shareholders vote on the board of directors.


What is a domestic profit corporation?

A domestic profit corporation is one that aims to generate profits for it's shareholders more so than it's directors or officers. Shareholders have control by electing the directors and officers who run the business day to day.


Define a company and explain how shareholders exercise control of the company business and directors conduct in the management of the companys affairs?

answer question please


What is the agency relationship between directors of public ltd company and the shareholders?

The agency relationship between directors of a public limited company and the shareholders is that the directors act as agents of the shareholders. The directors are entrusted with managing and making decisions on behalf of the company, with the aim of maximizing shareholder value. They have a fiduciary duty to act in the best interests of the shareholders and are accountable to them for their actions and decisions.


Is a business report and a board report the same?

A board report is a business report, a report of the business of a board of directors or a report of a specific meeting of a board. A business report can be on any topic whatsoever that involves any aspect of a business; it can be a report to or from the board of directors, a profit and loss report to shareholders or a government agency, to a justification for the expense to paint the rest rooms.


What kind of documents are articles of association?

They are documents that outline the tasks a board of directors should undertake within a company. Additionally they outline the type of business the company should practice and outline the control shareholders have over the board of directors.


How and where to register a company?

Company formation is the process of registering a business as a limited company at Companies House. As a result, the business becomes a distinct legal entity. The process is also referred to as ‘company incorporation’ and ‘company registration’. Minimum requirement for the Private Limited Company Minimum 2 Directors Minimum 2 Shareholders (Directors & Shareholders can be same) Minimum paid-up capital of Rs. 1,00,000/- DIN for both Directors Digital Signatures for all Directors Consent from subscriber or director Proof of Registered Address NOC from the owner of the premises


What does the legal structure of business mean?

Its when you decide what your business is going to be about and what products your going to sell! It means a partnership, public company, or a private company structure.


Why do you have shareholders?

we have shareholders in a business to make profit and to grow the business.we also have shareholders in a business in order to invest,it also brings expansion.


How the organisation structure and culture can impact on the performance of the business?

i want a simple ans


What is the organizational structure of nestle company?

The Nestle Company's organizational structure is composed of a Board of Directors. Thirteen members are designated to control various sections of the business.


Who owns a public limited business?

The Directors control a public limited company. Directors are appointed by Shareholders in AGM.