Day: February 12, 2025

Which of the following is an advantage to shareholders of a company that is obtaining a quotation on the London Stock Exchange?

Select ONE answer:

1. Disclosure requirements are reduced
2. Larger dividends can be paid
3. Shares become more readily marketable
4. The company becomes entitled to put ‘plc’ (that is, public limited company) after its name

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

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

The answer is 3

1. Not correct
2. Not correct
3. Correct == > Shares become more readily marketable when they are quoted. Not all public limited companies are quoted companies, and all quoted companies face increased disclosure requirements, not reduced ones, compared to an unquoted plc let alone a Ltd company. The size of dividend does not depend on whether a company is quoted.
4. Not correct

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