In which form of organization, ownership is easily transferable through buying and selling of shares? A. Public limited company (PLC) B. Sole proprietorship C. General partnership D. Limited liability partnership (LLP)
Question
In which form of organization, ownership is easily transferable through buying and selling of shares? A. Public limited company (PLC) B. Sole proprietorship C. General partnership D. Limited liability partnership (LLP)
Solution
The form of organization where ownership is easily transferable through buying and selling of shares is A. Public limited company (PLC).
Here's why:
A. Public Limited Company (PLC): In a PLC, shares are available to the public for purchase. These shares represent ownership in the company and can be easily bought or sold, making ownership transferable.
B. Sole Proprietorship: This is a business owned by a single individual. Ownership is not transferable through shares as there are no shares to sell.
C. General Partnership: In a general partnership, ownership is divided among partners and is not transferable through the sale of shares.
D. Limited Liability Partnership (LLP): Similar to a general partnership, an LLP is owned by partners. While it offers limited liability, ownership is not easily transferable through the sale of shares.
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