What is a common consequence of a public limited company’s size?

A common consequence of a public limited company's size is indeed the difficulty in managing operations effectively. As these companies grow and expand, they often encounter complexities that can complicate management structures and processes.

With a larger workforce and more extensive operations, communication can become fragmented, potentially leading to delays and misunderstandings. Additionally, the scale of operations may necessitate multiple divisions or departments, each focusing on a specific aspect of the business. Coordinating these departments to ensure they all work towards the same goals can be challenging, causing inefficiencies.

In contrast, smaller companies typically have fewer layers of management, allowing for quicker decision-making processes and more direct control by shareholders, which are aspects that larger public companies often struggle with. Larger firms may also find it difficult to maintain strong relationships with local communities, particularly if their operations are spread over various locations and they lack a local presence. Therefore, the challenges associated with managing operations effectively increase as the size of a public limited company grows.