Question 28
Business UnitsThe difference between a private and public limited liability company is that the former
- A.is unable to offer shares to the public
- B.is unable to declare and pay dividend
- C.has a higher number of shareholders
- D.pays higher salaries to its managers.
Show the answer and explanation
Answer: A (is unable to offer shares to the public)
Explanation
A private limited company cannot invite the public to buy its shares; a public company can.