A business organization with 2-50 members and its restricted to family and close friends.

A business organization with 2-50 members and its restricted to family and close friends.

• A. Public Limited Companies
• B. Co-operative
• C. Sole Trader
• D. Private Limited Company (Ltd)

Answer: (D)

Ownership and shareholding restrictions distinguish private limited companies from other forms. A private limited company typically has a small number of members—often 2 to 50—and its shares are not offered to the public. That keeps ownership within a close circle, like family and close friends, and restricts who can invest. Because of this, it’s the structure designed for small, private ventures that want control and confidentiality. In contrast, a Public Limited Company can have many shareholders and sells shares to the public, which isn’t aligned with a restricted, private circle. A sole trader is owned by a single person, not a group. A co-operative is member-owned and -run, but its membership isn’t necessarily limited to family or close friends and can include a broader group of users or workers.

Ownership and shareholding restrictions distinguish private limited companies from other forms. A private limited company typically has a small number of members—often 2 to 50—and its shares are not offered to the public. That keeps ownership within a close circle, like family and close friends, and restricts who can invest. Because of this, it’s the structure designed for small, private ventures that want control and confidentiality.

In contrast, a Public Limited Company can have many shareholders and sells shares to the public, which isn’t aligned with a restricted, private circle. A sole trader is owned by a single person, not a group. A co-operative is member-owned and -run, but its membership isn’t necessarily limited to family or close friends and can include a broader group of users or workers.