ACCA Applied Knowledge · Business and Technology · The purpose and types of business organisation
A company's shares can be offered to the general public and traded on a stock exchange. Which type of company is this?
This is a public limited company. Only public companies may offer shares to the general public and have them listed on a stock exchange, whereas private companies are generally restricted from doing so and partnerships and sole proprietorships have no shares.
- APrivate limited company
- BPublic limited companyCorrect
- CPartnership
- DSole proprietorship
Explanation
Only a public company may offer its shares to the public, and a stock exchange listing requires public company status. A private company is generally restricted from doing so. Partnerships and sole proprietorships have no shares.
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