• Thread Starter

    what are the effects of a shareholder on a business?

    A business becomes a plc/ltd so has limited liability and the goals of a business may change and become more focused on profits to give shareholders regular dividends and keep them investing in the business

    Ultimate owners
    Provide the capital at the beginning and are a source of continuing finance.

    They can be passive and treat it as an investment or they can be active and exercise some of their powers as owners of the company.
    That can be deciding who runs it on their behalf by approving or firing the board of directors.

    Besides providing further finance by buying shares if thye dont like the shares they can sell them and if nobody else wants them, then it can make things more difficult for companies in terms of available finance. In contrast if shares are in demand and shareholders are willing to pay a high price, then a company can have access to more capital, enabling it to do more ambitious things.

    Patient shareholders make it easier for the company whereas demanding ones can make it more difficult by demanding short term profits

    Sure there are other things people can add.

Write a reply… Reply
Submit reply


Thanks for posting! You just need to create an account in order to submit the post
  1. this can't be left blank
    that username has been taken, please choose another Forgotten your password?
  2. this can't be left blank
    this email is already registered. Forgotten your password?
  3. this can't be left blank

    6 characters or longer with both numbers and letters is safer

  4. this can't be left empty
    your full birthday is required
  1. Oops, you need to agree to our Ts&Cs to register
  2. Slide to join now Processing…

Updated: October 3, 2016
TSR Support Team

We have a brilliant team of more than 60 Support Team members looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

Which is the best season?
Useful resources

Study tools


Essay expert

Learn to write like a pro with our ultimate essay guide.

Thinking about uni already?

Thinking about uni already?

See where you can apply with our uni match tool

Student chat

Ask a question

Chat to other GCSE students and get your study questions answered.


Make study resources

Create all the resources you need to get the grades.


Create your own Study Plan

Organise all your homework and exams so you never miss another deadline.

Resources by subject

From flashcards to mind maps; there's everything you need for all of your GCSE subjects.


Find past papers

100s of GCSE past papers for all your subjects at your fingertips.

Help out other students

Can you help? Study help unanswered threads

Groups associated with this forum:

View associated groups

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Quick reply
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.