1
Q
Definition and features of private limited company
A
- it is recognised by the initials ltd after its name.
- it does not have to publish its annual financial statements.
2
Q
Definition and features of a public limited company
A
- company which can sell its shares on the stock market to the public.
- there is no limit to the number of shareholders it may have.
3
Q
Advantage of a public limited company
A
- all shareholders in a plc benefit from limited liability.
- equity can be raised by selling shares on the stock market.
4
Q
Disadvantages of a public limited company
A
- a PLC must publish its financial statements
- the setting up of a plc is determined by numerous legal regulations.
