Question 63
Business UnitsA private limited liability company differs from a public limited liability company because
- A.of its inability to offer shares to the public
- B.it has a separate entity
- C.it has many shareholders
- D.it declares dividends to shareholders
- E.it pays salaries to its managers
Show the answer and explanation
Answer: A (of its inability to offer shares to the public)
Explanation
A private company cannot invite the public to buy its shares; a public company can.