Which statement about public limited companies (PLCs) is true?

• A. Shares can be bought by the public on the stock market; liability limited to share capital.
• B. It must have at most two shareholders.
• C. It is a nonprofit organization.
• D. It operates only domestically.

Answer: (A)

Public limited companies are set up to raise capital by selling shares to the public on a stock market, and shareholders have limited liability—their risk is limited to the amount they’ve invested. This combination means the company is a separate legal entity that can attract broad ownership while protecting individual assets. The other statements don’t fit: a PLC is not limited to at most two shareholders; it is not a nonprofit organization, and it does not operate only domestically—PLC shares can be traded publicly and the business can operate internationally.