Which of the following is a reason for a public limited company to publish its annual report and accounts?

• A. To attract investors who might be interested in the financial position of the company.
• B. To reduce marketing costs.
• C. To lower prices to consumers.
• D. To change employee benefits.

Answer: (A)

Publishing the annual report is about transparency and informing stakeholders, especially potential investors, about the company’s financial position and performance. A public limited company routinely needs to share detailed financial statements, notes, and managerial commentary so investors can assess value, risk, and prospects. This openness helps build credibility and confidence, which in turn can attract new investment and support easier access to capital.

The other options don’t align with the primary purpose. The annual report isn’t meant to reduce marketing costs, and it doesn’t directly determine consumer prices or drive changes to employee benefits. It may include information about remuneration and governance, but its main function is to communicate financial position and results to investors and other interested parties.