PRC-3 · Chapter 2 · Question 22 of 61
Which business structure is generally subject to the highest level of statutory regulation, disclosure requirements, and public scrutiny?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Public Limited Company
Explanation
Because public companies raise funds from the general public, they are heavily regulated by authorities to ensure transparency and protect investors.
More Ownership of Business MCQs
- Q24Mr. Ali runs a freelance graphic design business as a sole trader. If a client sues him for breach of contract and wins a massive…
- Q25Three friends form a general partnership to run a logistics firm. Tragically, one of the partners passes away unexpectedly. In the absence…
- Q26A group of investors form 'Pioneer Solutions (Pvt) Ltd'. The company takes out a bank loan to buy an office building. Who legally owns the…
- Q27Nova Technologies wants to raise Rs. 500 million to build a new factory by inviting the general public to buy its shares through the stock…
- Q28A group of dairy farmers form an organization to collectively process and market their milk, sharing the profits based on how much milk…
