three advantages of public limited company

Mention Any three advantages of public limited company.

The advantages of public limited company are as follows.

a. Huge capital. A company collects capital by selling shares to the public . It has the opportunity to sell shares to thousands of investors. Thus , a company can collect huge amount of capital to run large scale of business.

b. Limited liability: A company has a separate legal entity . The liability of member is limited to the extent of amount they have invested in the company. It has obligation to pay its debt from the company’s assets . Thus, all the shareholder enjoy the benefit of having limited liability in a company.

c. Transferability of ownership: The shares owned by a shareholder can be freely transferred to another in company . It means the ownership right of any individual is transferable. Therefore, the investors are attracted towards company for huge investment.

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