Comprehension
Sudha Publishing House was a Private Limited Company. The publishing business was growing by leaps and bounds. The demand was huge. It required huge investment to set up its branches and printing base all over the country. The board members were thinking to offer shares to the public to meet investment requirements.
On the basis of above case, answer the following questions
On the basis of above case, answer the following questions
Question: 1
Identify the form of organization, which board members are thinking of.
Identify the form of organization, which board members are thinking of.
Updated On: Dec 14, 2024
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Solution and Explanation
The board members are thinking of converting the company into a Public Limited Company.
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Question: 2
Which two benefits would be availed if this form is accepted by the company?
Which two benefits would be availed if this form is accepted by the company?
Updated On: Dec 14, 2024
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Solution and Explanation
Two benefits of becoming a Public Limited Company are:
1. Access to Large Capital: By issuing shares to the public, the company can raise substantial funds required for expansion and meeting investment demands.
2. Enhanced Credibility and Market Presence: Being publicly listed increases the company’s visibility, trustworthiness, and ability to attract investors.
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