Question

Many private limited companies convert into public limited companies because _____.

• A. they do not want to change their business
• B. they want to gain the benefits of limited liability
• C. they want to get guarantee from its members
• D. they want to raise additional capital to expand the business

Answer 1

Answer: (D)

they want to raise additional capital to expand the business

Private limited company is a type of company that offers limited liability, or legal protection to its share holders. Many private limited companies who want to expand their business convert themselves into public limited companies. As the public limited companies are widely spread they can expand the business easily.