Public and Private Limited Companies

What does PLC stand for?

• Public Limited Company

• Profit/Liability Curve

• Princesses Like Crowns

• Probably Locking Cages

What is the simple difference between a public and private limited company?

• A public limited company is public and a private limited company is private.

• There are no differences.

• The public limited company can quote shares in a stock exchange while a private limited company cannot.

• One does not deal with shares while the other does.

What is are some characteristics of a public limited company?

• A name, unlimited liabilities, perpetual succession

• A name, limited liabilities, perpetual succession

• A single person, shares, advertisements

• A song, a dance, a clown

What are some documents required for the formation of a public limited company?

• Article and memorandum of association.

• A car.

• An already established business.

• A private jet.

What is one advantage of a public limited company?

• They get free food.

• They can tell private limited companies what to do.

• They can buy an unlimited amount of vehicles.

• Shares are easily transferable.

What is one disadvantage of a public limited company?

• Stock market vulnerabilty

• Limited liabilities.

• They cannot buy cars.

• They cannot buy shares.

A company with limited liability

• Sole Trader

• Partnership

• Public limited company

• Private limited company

Why does a company issue shares?

• To raise money that can be invested in the business
• To make more profit
• To get more owners
• To allow the business to be sold off

Which of the following is an advantage of a private limited comapany

• You can sell shares openly to anybody around the world
• You can gain more sales as the business is well known
• You can choose your own shareholders that are suitable for the business
• They have unlimited liability

Owners are not personally liable for the firm's debts, only for the amount of contributed capital, this is...

• unlimited liability

• limited liability

• franchising