Select advantages of Public Companies below. (you can select more than one option) Question 2 options: Ability to raise large amounts of capital for large-scale business Easy marketability of shares Ability to gain unlimited liability for members through separate legal entity concept Company unaffected by changes in shareholders (perpetual succession) Shareholders need not take an active part in management of company
Question
Select advantages of Public Companies below.
(you can select more than one option)
Question 2 options:
Ability to raise large amounts of capital for large-scale business
Easy marketability of shares
Ability to gain unlimited liability for members through separate legal entity concept
Company unaffected by changes in shareholders (perpetual succession)
Shareholders need not take an active part in management of company
Solution
The advantages of Public Companies from the options provided are:
- Ability to raise large amounts of capital for large-scale business
- Easy marketability of shares
- Company unaffected by changes in shareholders (perpetual succession)
- Shareholders need not take an active part in management of company
The option "Ability to gain unlimited liability for members through separate legal entity concept" is not an advantage. In fact, one of the advantages of a public company is limited liability for its shareholders, not unlimited.
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