CIMA BA4 · Chapter 13 · Question 3 of 10
Under English law, which of the following is a key difference between a public company (plc) and a private company?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Only a public company may offer its shares to the public
Explanation
A private company is prohibited from offering its shares to the public; a public company may do so and may seek a listing. Both can have limited liability and separate legal personality, and both must file accounts with the Registrar of Companies.
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