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.
