Question 25
Business UnitsThe following are advantages of public limited companies (PLCs) over private limited companies:
I. Shares can be offered to the general public on the stock exchange
II. Greater ability to raise large amounts of capital
III. Less stringent disclosure and reporting requirements
IV. Perpetual succession continues regardless of ownership changes
- A.I and II only
- B.I, II and IV only
- C.III and IV only
- D.All of the above
Show the answer and explanation
Answer: A (I and II only)
Explanation
PLCs can sell shares to the public and so raise more capital. Their disclosure rules are stricter, and perpetual succession applies to private companies too, so it is no advantage.