What is the primary advantage of a public limited company (PLC)? A. Limited liability B. Tax benefits C. Easy formation D. Unlimited liability
Question
What is the primary advantage of a public limited company (PLC)? A. Limited liability B. Tax benefits C. Easy formation D. Unlimited liability
Solution
The primary advantage of a public limited company (PLC) is A. Limited liability. This means that the shareholders of the company are only liable to the extent of their shareholding. If the company goes bankrupt, the shareholders do not risk losing their personal assets; they only lose the money they've invested in the company's shares.
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