Private Limited Company

A private company can sell shares to the public.

• True

• False

A private company's liability is limited to the amount unpaid on shares.

• True

• False

What is the liability status of shareholders in a private limited company?

• Unlimited liability

• Limited to the company's debts

• Limited to their share contributions

• None of the above

What is the minimum number of shareholders required to start a private limited company?

• 3

• 2

• 1

• 5

Limited private companies must have a minimum of 50 shareholders.

• True

• False

A private company can choose to remain unregistered and still operate legally.

• True

• False

Who manages the day-to-day operations of a private limited company?

• Shareholders

• Board of Directors

• Auditors

• Employees

What is the maximum number of shareholders allowed in a private limited company?

• 25

• 100

• Unlimited

• 50

The directors of a private company are personally liable for the company’s debts.

• True

• False

A private company’s shares cannot be freely transferred without the consent of other shareholders.

• True

• False