Understanding Public Limited Companies

What is a public limited company primarily known for?

• Being a private entity with limited shares

• Offering shares to the public via the stock exchange

• Having unlimited liability

• Operating without a board of directors

In the UK, how is a public limited company abbreviated?

• AG

• CCC

• PLC

• LLC

What is a key feature of a public limited company?

• Joint liability

• No liability

• Limited liability

• Unlimited liability

What is the minimum capital requirement for a public limited company?

• £10,000

• £25,000

• £50,000

• £100,000

How many directors must a public limited company have at minimum?

• One

• Two

• Three

• Four

What is the process called when a private limited company becomes a public limited company in the UK?

• Merger

• Flotation

• Liquidation

• Acquisition

What is the main reason for a company to go public?

• To reduce operational costs

• To avoid regulations

• To access the stock exchange for finance

• To limit shareholder numbers

Which of the following is a potential source of finance for a public limited company?

• Pension funds

• Government grants

• Crowdfunding

• Personal savings

What does the 'S' in the PLUMS acronym stand for?

• Sources of finance

• Shareholders

• Securities

• Sales

What is a major disadvantage of becoming a public limited company?

• Reduced market presence

• Loss of control over shareholder composition

• Limited access to finance

• Increased control over shareholders