Multiple choice general knowledge

Private limited company 1)Not more than 50 members 2)Shares are not freely transferable. 3)No invitation to public for subscription.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A private limited company has these defining characteristics: membership limited to 50 persons (excluding employees), shares cannot be freely transferred (require board approval), and the company cannot invite the public to subscribe to its shares or debentures. These restrictions distinguish it from public limited companies.

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