What is a disadvantage of operating as a Public Limited Company (Plc)?

Operating as a Public Limited Company (Plc) entails several obligations, and one significant disadvantage is that profit figures must be made public. This requirement stems from the regulatory environment governing public companies, which ensures transparency for shareholders and potential investors. While this accountability can enhance confidence in the company, it also means that sensitive financial information is readily available to competitors and the broader market. This transparency can lead to strategic disadvantages, as competitors may use this information to their advantage.

In contrast to this, other options pertain to characteristics that do not accurately reflect the nature of a Plc. Ownership can indeed be transferred since shares are publicly traded on the stock exchange. Furthermore, shares of a Plc can be sold on the stock market, providing greater access to capital than private companies. Therefore, the obligation to disclose profit figures represents a real drawback of operating as a Plc, as it can influence not only competitive positioning but also investor perception and market valuation.