Limited Companies and Multinationals - Pre assessment

What is the main difference between a public and a private limited company?

• Public limited companies can raise money from the public by selling shares on the stock exchange.
• Private limited companies cannot raise money from the public.
• Both public and private limited companies can raise money from the public.
• None of the above.

What are the advantages of being a public limited company?

• Public limited companies can raise more money from the public.
• Public limited companies have more prestige and recognition.
• Public limited companies have more shareholders, which can lead to better decision-making.
• All of the above.

What are the disadvantages of being a public limited company?

• Public limited companies are more complex and expensive to run.
• Public limited companies are subject to more regulation.
• Public limited companies are more vulnerable to changes in the stock market.
• All of the above.

What is a multinational company?

• A company that operates in multiple countries.
• A company that is owned by multiple countries.
• A company that sells products and services to multiple countries.
• None of the above.

What are the advantages of being a multinational company?

• Multinational companies can access new markets and customers.
• Multinational companies can take advantage of lower costs of production in other countries.
• Multinational companies can spread their risk across different countries.
• All of the above.

What are the disadvantages of being a multinational company?

• Multinational companies are more complex and expensive to run.
• Multinational companies are subject to different laws and regulations in different countries.
• Multinational companies are more vulnerable to political and economic instability in other countries.
• All of the above.

Which of the following is a major challenge facing multinational companies?

• Managing a diverse workforce.
• Protecting intellectual property.
• Complying with different laws and regulations.
• All of the above.

Which of the following is a benefit of limited companies?

• Limited liability.
• Separate legal entity.
• Perpetual succession.
• All of the above.

Which of the following is a disadvantage of limited companies?

• Double taxation.
• Cost of incorporation.
• Complexity of structure.
• All of the above.

Which of the following is a type of limited company?

• Public limited company.
• Private limited company.
• Limited liability partnership.
• All of the above.