which of the following features distinguishes a public limited company from a private limited company

Step 1: Analyze the question The question asks for the feature that distinguishes (separates) a public limited company (PLC) from a private limited company (Ltd). So we need something that PLCs have and private limited companies do not.

Step 2: Explain the concept Both types of company share these features:

• Perpetual existence: the company continues even if owners die or leave.
• Limited liability: owners lose only the amount they invested.
• Separate legal entity: the company can sue and be sued in its own name.

The real difference lies in how they raise capital:

• A private limited company cannot invite the general public to buy its shares. Shares are sold privately, to family, friends and a small group of members.
• A public limited company can offer its shares to the general public, usually through the stock exchange (e.g., the Nigerian Exchange Group).

Step 3: Check each option

• A. Perpetual existence: both have it, so it does not distinguish them.
• B. Limited liability: both have it, so it does not distinguish them.
• C. Legal entity: both are separate legal entities, so it does not distinguish them.
• D. Sale of shares to the public: only a public limited company can do this. ✔

Answer: D. Sale of shares to the public

Tip: When a question says "distinguishes" or "difference between" PLC and Ltd, think of "public = shares for the public." Features such as limited liability, legal personality and perpetual existence are common to both, so they are usually the wrong options.