Paper 2 · Forms of Enterprise
A benefit of converting a partnership into a public limited company is
Athe removal of all tax on the company's profits
Bthe right to trade without a business licence
Caccess to capital by selling shares to the public
Dfreedom from any obligation to publish annual accounts
Explanation: A public company may offer its shares to anyone, so it can raise far more capital than a handful of partners could put in. It also gains limited liability for its shareholders, continuity beyond the life of any owner, and standing that helps in dealing with lenders and suppliers.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Specimen Paper, Q1