Which of the following types of ownership is most suitable for an established business that needs to raise a large amount of capital to expand overseas? A - OCR - GCSE Business - Question 5 - 2020 - Paper 1

To determine the most suitable type of ownership for an established business aiming to raise a large amount of capital for overseas expansion, we should consider the characteristics and advantages of each option:

1. Partnership: This type generally has limited capacity to raise large amounts of capital, as it relies on contributions from partners, which may not be sufficient for significant expansion.

2. Private limited company: While it allows for capital raising through private investors, it is still limited compared to a public company. Therefore, it may not maximize the potential capital needed for extensive international operations.

3. Public limited company (PLC): A PLC can raise substantial sums of money by offering shares to the public on the stock exchange. This is the ideal choice for a business needing significant capital, especially for international ventures.

4. Sole trader: This ownership type is not suitable for large-scale capital requirements, as it typically relies on personal savings or small loans.

After evaluating these options, the best choice for raising a large amount of capital to expand overseas would be a Public Limited Company (C).