Business Studies Multiple Choice Question – 30 September 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Business Studies
Photo by Andrea Piacquadio on Pexels.com

Stafford Holdings plc is one of the world’s biggest public limited companies.

Which one of the following is an advantage of being a public limited company for Stafford Holdings?

Select ONE answer:

  1. need close supervisionIt publishes its annual accounts
  2. It can control who buys its shares
  3. Its shareholders have unlimited liability
  4. It can raise funds through the stock exchange

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct – Theory Y managers assume that employees like to lead rather Not correct – has to publish its full accounts meaning its competitors can gain information that will help them to plan competitive strategies.
  2. Not correct – since the shares can be bought and then sold on by any member of the general public through a stock exchange.  Stafford Holdings has no control over who owns it shares which could be bought in large quantities by rivals planning a takeover. 
  3. Not correct – shareholders can only be held liable up to the value of the shares they have bought and paid for, their liability is limited. 
  4. Correct – a public limited company as a company that sells it shares to members of the general public/ & the shares are traded on the stock exchange.  Stafford Holdings has greater access to potential investors in order to raise funds.  This means it can raise higher amounts of capital than other business structures.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s