O-LevelCommerceBusiness enterprise7100/12 · May/June 2017 · Q381 Mark

What is the main advantage that a public limited company has over a private limited company?

ACapital is raised from shares sold on stock exchanges.

BIt operates in the private sector of a country's economy.

COwnership of shares is restricted to members of a family.

DShareholders have the protection of limited liability.

✓ Correct answer

A: Capital is raised from shares sold on stock exchanges.

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Topic: Business enterprise, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, May/June 2017 Paper 1 Variant 2, question 38.

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