Limited Company Features

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

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

Which document outlines the internal regulations of a private limited company?

• Articles of Incorporation

• Shareholders' Agreement

• Articles of Association

• Memorandum of Understanding

How are shares transferred in a private limited company?

• Freely on the stock market

• Without restrictions

• With approval from other shareholders

• Through government consent

What happens to the profits in a private limited company?

• Fully distributed to shareholders

• Shared as dividends or reinvested

• Kept entirely by directors

• Given to employees

What legal status does a private limited company have?

• Separate legal entity

• Not separate from its owners

• Dependent on shareholders

• Linked only to directors

Can a private limited company sell shares to the public?

• Yes, but with permission

• No, only after 5 years

• No, it is restricted

• Yes, without restrictions

What is one of the primary benefits of a private limited company for its owners?

• Simplified tax structure

• Unlimited borrowing capacity

• Protection of personal assets

• Unrestricted decision-making