A Public Company is

A Public Company is

• A. A business that offers shares to members of the public
• B. A business owned by one person
• C. A business that invites 2-50 private shareholders
• D. A government enterprise

Answer: (A)

A public company is defined by how it raises capital: it offers its shares to the general public, meaning anyone can buy a stake in the business. This broad access to investment is what lets the company grow and, in many cases, have its shares traded on a stock exchange. The other options describe different ownership arrangements: a business owned by one person is a sole proprietorship; a company that invites a small, private group of shareholders is a private company; and a government enterprise is owned by the state. So the description that a business offers shares to the public best matches a public company.

A public company is defined by how it raises capital: it offers its shares to the general public, meaning anyone can buy a stake in the business. This broad access to investment is what lets the company grow and, in many cases, have its shares traded on a stock exchange. The other options describe different ownership arrangements: a business owned by one person is a sole proprietorship; a company that invites a small, private group of shareholders is a private company; and a government enterprise is owned by the state. So the description that a business offers shares to the public best matches a public company.