FACTORS MILITATING AGAINST PUBLIC LIMITED COMPANIES: A CASE STUDY OF SOME SELECTED COMPANIES

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This study examined the concept of public limited companies and the problems affecting public limited companies. The scope of the study or the purpose of the study was to look into the factors militating against public limited companies in Edo state. The industrial location questionnaire (ILQ) was used for data collection as well as the survey method of research. The summary of findings revealed that the factors militating against public limited companies were high taxation irregular power supply, inadequate fund, etc. consequently the study concluded with some recommendation that government should formulate good policies that will help to enhanced the status quote public limited companies. That management of public limited companies should ensure that there is a free report between them and their employees.

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Public Limited Liability Company is sometimes refers to as joint stock company. This business concern is usually owned by individuals of organizations pooling resources together with the aims of maximizing profit. It is also worthy to note that the sales of shares to the public makes it a public limited company.

Ownership is usually not less than seven person public companies are forms when the capital required is so large that it cannot be raised solely through one individual. A public company has its shares quoted on the stock exchange for members of the public to invest in, and at the end of every financial years the public limited liability company publishes its financial statement for public consumption.

As stated earlier the aim of any business organization is to maximize profit, and in order to maximize this profit these companies are located in place having the most favourable economic condition. Location of companies or industries simply means the place where industries are sited or location of companies or industries are concentrated in one geographic location and this can be as a result of political factors or personal interest. Such companies are the textile factory, bear and soft drink companies.

In the private sector, the individual decision of location of industry is generally determined by profit maximization. But in the pubic sectors the government may locate a new plant in an area of high unemployment for political or social reasons. The location of industries in Nigeria has bought about greater achievement to the populate in the sense that it was helped so facilitate a lot of other subsidiary industries, created employment opportunities which has bought about increase in the per capital income and output of the country, which in actual sense is termed economic growth. Similarly industrial location exercises a lot of influence on the economic viability of a country.

For the objective of any industry to be achieved the industry or company must be favorable located.

1.2 STATEMENT OF PROBLEM

the researcher bought to find out the major factors influencing the location of Guinness Nigeria plc as we’ll as it problem

1.3 OBJECTIVE OF THE STUDY

The objective of this study includes to examine the concept of public limited companies. To examine the factors militating against public limited companies. To proffer solution to the problems identified.

1.4 SCOPE OF THE STUDY

The scope of this study is to investigate into the factors militating against public limited companies hardly survive or even lend to fold up as soon as they state, due to some oblivious reason, hence the significance of this study.

Secondly the essence of this industrialist and the government to always put certain factors into consideration when sitting or locating an industry or company.

1.5 LIMITATION OF STUDY

The study will be carrying out among some selected companies in Edo state. The population in which this researcher’s work will be carried out will be small because of financial contrail.

1.6 DEFINITION OF TERMS

Public limited companies: This is government owner enterprise, it is an asset for the whole nation companies is a business organization that makes money by producing or selling good or services.