JAMB UTME - Commerce - 2006 | Green Bridge CBT

Question 1 Report

The difference between a private and public limited liability company is that the former?

is unable to offer shares to the public Correct answer

is unable to declare and pay dividend

has a higher number of shareholders

pays higher salaries to its managers

Answer Details

A private limited liability company is a business entity that is owned by a small group of individuals (usually family and friends), and its ownership is restricted to a certain number of shareholders. On the other hand, a public limited liability company is a business entity that can offer its shares to the public and has no limit to the number of shareholders it can have. Therefore, the main difference between a private and public limited liability company is that the former is unable to offer shares to the public, while the latter can.






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