Which statement about Public Limited Companies is true?

• A. They are owned by a single private owner.
• B. They must have a minimum share capital of £10,000.
• C. They can sell their shares publicly through the stock market.
• D. They operate without a board of directors.

Answer: (C)

Public Limited Companies are designed to raise capital by selling shares to the public, and in many markets these shares can be traded on a stock exchange. This public sale of shares is what distinguishes a PLC from private firms, allowing ownership to be spread among many investors rather than held by a single private owner. Governance is formal, with a board of directors responsible for overseeing management and protecting shareholders’ interests, so operating without a board isn’t correct. The idea of a fixed minimum share capital varies by country and isn’t the defining feature of a PLC; the exact amount isn’t universally fixed at £10,000, so that detail isn’t the key distinction.