Which statement is true about public limited companies?

Which statement is true about public limited companies?

• A. They are always smaller than private limited companies.
• B. They have no board of directors.
• C. They can sell their shares publicly through the stock market.
• D. Their shares are private and cannot be traded publicly.

Answer: (C)

Public limited companies are designed to raise capital by offering shares to a wide pool of investors and by listing those shares on a stock market. This setup lets them sell shares publicly and let those shares be traded by many investors, which is why the statement that they can sell their shares publicly through the stock market is true. The idea that they’re always smaller than private limited companies isn’t accurate—PLC size varies, and many are quite large. They typically have a board of directors, so saying they have no board isn’t correct. And since the shares are intended to be offered to the public, they are not private and cannot be traded only privately.

Public limited companies are designed to raise capital by offering shares to a wide pool of investors and by listing those shares on a stock market. This setup lets them sell shares publicly and let those shares be traded by many investors, which is why the statement that they can sell their shares publicly through the stock market is true. The idea that they’re always smaller than private limited companies isn’t accurate—PLC size varies, and many are quite large. They typically have a board of directors, so saying they have no board isn’t correct. And since the shares are intended to be offered to the public, they are not private and cannot be traded only privately.