Public Limited Liability Company Concepts

The video outlines the advantages of a public limited liability company, highlighting limited liability for shareholders, larger capital for expansion, business continuity despite shareholder changes, and risk diversification through investment in multiple businesses.

What is one of the key benefits for shareholders in a public limited liability company?

• Unlimited liability

• No liability

• Shared liability

• Limited liability

How does a public limited liability company benefit from having a larger capital outlay?

• It increases the company's liabilities.

• It limits the company's growth.

• It reduces the number of shareholders.

• It allows for more significant expansion opportunities.

What happens to a public limited liability company if a shareholder withdraws or passes away?

• The company must sell its assets.

• The company must merge with another.

• The company continues to operate.

• The company must dissolve.

Why is risk diversification an advantage for shareholders in a public limited liability company?

• It enables shareholders to spread their investments across multiple companies.

• It limits the shareholders' investment options.

• It allows shareholders to invest in only one company.

• It increases the risk for shareholders.

How does the concept of limited liability encourage shareholders to diversify their investments?

• By making them responsible for company debts.

• By allowing them to invest in multiple companies without increasing personal risk.

• By increasing their liability in each company.

• By restricting them to invest in only one company.