JAMB Economics 1993 Question 25

Question 25

Business Organisations

A public liability company is different from a private limited company because it

  1. A.is registered with the registrar of companies
  2. B.is a legal entity
  3. C.can raise capital of any size by way of loans
  4. D.can sell shares in the stock exchange
Show the answer and explanation

Answer: D (can sell shares in the stock exchange)

Explanation

Only a public company may offer its shares to the general public through the stock exchange; both kinds are registered and are legal entities.