PRC-3 · Chapter 2 · Question 15 of 61
A company is planning to raise capital by inviting the general public to subscribe to its shares for the first time. What type of company is allowed to do this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Public limited company
Explanation
Only public limited companies are legally permitted to offer their shares to the general public through an Initial Public Offering (IPO).
More Ownership of Business MCQs
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