Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

Which type of company allows the transfer of shares without the company's permission?

Options:

Private limited company

Partnership company

Sole proprietorship company

Public limited company

Correct Answer:

Public limited company

Explanation:

A public limited company is a type of company that allows the transfer of shares without requiring the company's permission. Public limited companies are those companies that are listed on a stock exchange and offer their shares to the public for trading. Since their shares are publicly traded, they can be bought and sold by individuals and institutional investors in the open market without needing the company's direct approval for each transaction.