Public limited liability companies are owned by__________?

1. Analyze the question The question asks who owns a public limited liability company (PLC). The name "public" can be misleading, so we need to be careful.

2. Explain the concept

• A public limited liability company (PLC) is a company whose shares are offered for sale to the general public, usually through the stock exchange (in Nigeria, the Nigerian Exchange Group).
• Its owners are the shareholders, who can be private individuals, groups, or organizations.
• It is different from a public corporation (also called a statutory corporation or parastatal), such as NNPC or the Nigerian Ports Authority. Public corporations are owned by the government (federal or state) and set up by law or decree.
• Its liability is limited, so shareholders lose only what they invested if the company fails.

3. Step-by-step solution

• Options A, C and D all name government bodies. These describe public corporations, not public limited liability companies.
• A PLC is owned by shareholders from the private sector, meaning individuals and private organizations who buy its shares.
• Option B, "Private and individual organizations", matches this.

4. Answer The correct option is B. Private and individual organizations.

5. Exam tip Don't let the word "public" fool you. In a public limited company, "public" means the public can buy shares. In a public corporation, "public" means government owns it. Remember: PLC = Private owners, Public shares.