O-LevelCommerceBusiness enterpriseMay/June 2017Paper 1 Q381 Mark

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

Q: What topic does this question test?

This question tests Business enterprise in O-Level Commerce (syllabus code 7100). It is worth 1 mark.

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

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

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This O-Level Commerce Question

Topic

This multiple-choice question tests Business enterprise in O-Level Commerce (syllabus code 7100). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Commerce May/June 2017 examination, Paper 1 Variant 2.

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