Advantages:
Can sell shares on the stock exchange so can raise more money than other types of business
the shareholders have limited liability, meaning they can only lose the money they have invested in tesco if it fails, they can not be forced to sell their personal possessions.
Disadvantages:
They have to publish their accounts so therefore competitors can see them.
They have to pay dividends to shareholders.
If shareholders are not happy with dividends they can sell their shares.
Have to report to city workers every 3 months about their profits and performance so often only make short term decisions.
Can sell shares on the stock exchange so can raise more money than other types of business
the shareholders have limited liability, meaning they can only lose the money they have invested in tesco if it fails, they can not be forced to sell their personal possessions.
Disadvantages:
They have to publish their accounts so therefore competitors can see them.
They have to pay dividends to shareholders.
If shareholders are not happy with dividends they can sell their shares.
Have to report to city workers every 3 months about their profits and performance so often only make short term decisions.
