BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Unlimited liability and an unlimited number of shareholders.
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Limited liability and a limited number of shareholders
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Limited liability and an unlimited number of shareholders.
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Unlimited liability and limited number of shareholders
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Detailed explanation-1: -No, Public Limited Companies (PLC) do not have unlimited liability. Rather, stockholders of a PLC enjoy limited liability. This means that they will not be held accountable for losses or unpaid credits beyond their shares’ value.
Detailed explanation-2: -Public Limited Companies (PLC) It has a constitution document which includes a memorandum and articles of association. It has limited liability and has a share capital. It must have at least two directors. All directors must be over eighteen.
Detailed explanation-3: -The liability for the shareholders is limited, which means that you are not obliged to make higher contributions to the company than what follows from the share subscription. As a shareholder you cannot be held liable for debts incurred by the company beyond what you have paid for the share.