A public limited company differs from a private limited company mainly because a public limited company may:
Correct answer: B. Invite the public to subscribe for its shares
- A. Have no separate legal identity
- B. Invite the public to subscribe for its shares
- C. Give every shareholder unlimited liability
- D. Operate without any governing documents
Explanation
A public limited company can generally invite the public to subscribe for its shares, subject to legal requirements. A private limited company restricts the transfer or public offering of its shares under the applicable company law.
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About Nature and Forms of Business Organisation
Business organisation combines people, capital, materials and entrepreneurship to produce goods or services and earn profit, while also meeting customer and social needs. Coverage includes sole proprietorships, partnerships, companies and cooperatives, with comparisons of ownership, liability, control, profit sharing, continuity and legal status.
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