What type of limited company can sell shares to the general public and is often large?

• A. Private limited company
• B. Public limited company (plc)
• C. Closed corporation
• D. Joint venture

Answer: (B)

A public limited company (plc) is designed to sell shares to the general public, which distinguishes it from other types of limited companies. This structure allows for greater access to capital since shares can be marketed to a wide audience, often resulting in a larger pool of investors. Public limited companies are typically larger in size and are listed on stock exchanges, providing them with visibility and an opportunity for significant growth.

The ability to issue shares to the public enables these companies to raise substantial funds for expansion, research and development, and other business ventures, which often supports their status as large entities. Furthermore, as public companies, they are subject to regulatory standards that require total transparency in their financials and operations, bolstering investor confidence.

The other types of companies, such as private limited companies, closed corporations, and joint ventures, have different structures and limitations regarding share distribution and public interaction that prevent them from operating in the same way.