Which form of organization requires a minimum of two members and can have a maximum of unlimited members? A. Partnership B. Sole proprietorship C. Limited liability partnership (LLP) D. Public limited company (PLC)
Question
Which form of organization requires a minimum of two members and can have a maximum of unlimited members? A. Partnership B. Sole proprietorship C. Limited liability partnership (LLP) D. Public limited company (PLC)
Solution
The form of organization that requires a minimum of two members and can have a maximum of unlimited members is D. Public Limited Company (PLC).
Here's why:
A. Partnership: This typically involves two to twenty members. It's not suitable for larger businesses.
B. Sole Proprietorship: This is a business owned and run by one individual. There's no legal distinction between the owner and the business in this case.
C. Limited Liability Partnership (LLP): This is a partnership in which some or all partners have limited liabilities. It can have two to unlimited partners, but it's not as common for large numbers of partners.
D. Public Limited Company (PLC): This is a type of company that offers its shares to the general public. It requires a minimum of two shareholders but can have an unlimited number of shareholders. This makes it the best fit for the description in the question.
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