PRC-3 · Chapter 2 · Question 39 of 61
A large corporation, currently owned by 10 wealthy investors, decides to list itself on the national stock exchange to allow the general public to trade its shares freely. What will this entity be known as?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A Listed Public Limited Company
Explanation
When a public limited company offers its shares to the general public and allows them to be traded on a stock exchange, it becomes a listed public limited company.
More Ownership of Business MCQs
- Q41Ali, Bilal, and Chaudhry run a legal firm as a general partnership. Chaudhry decides to retire and withdraw his capital. In the absence of…
- Q42Horizon Textiles (Pvt) Ltd takes out a Rs. 10 million loan from a commercial bank to buy new looms. If the company defaults, who is…
- Q43The Water and Power Development Authority (WAPDA) is owned by the government and supplies electricity to citizens. It does not issue…
- Q44Mrs. Sara is appointed to the Board of Directors of a large bank. Her role is to attend board meetings, provide objective advice, and…
- Q45A listed company declares a highly profitable year. The Board of Directors votes to distribute 30% of these profits directly to the…