Which type of company has the legal right to sell shares to the public?

A Public Limited Company (PLC) has the legal right to sell shares to the public. This structure allows the company to raise capital from a broader base of investors, as shares can be bought and sold on the stock exchange. This access to public funding is crucial for expansion and development, enabling the company to undertake larger projects and enhance its market presence.

In contrast, a Private Limited Company does not have this ability; it can sell shares only to a select group of private investors and cannot publicly list its shares. Similarly, a Sole Trader operates individually and does not issue shares at all, as the business is not set up as a company. Partnerships also do not have the capacity to sell shares to the public; they are typically formed between two or more individuals who share ownership and responsibilities without the structure required to issue shares publicly. Therefore, the distinguishing feature of a Public Limited Company is its right to publicly trade its shares, setting it apart from the other types of business entities listed.