Which term describes a private company with limited liability that can have its shares held by family and friends?

Which term describes a private company with limited liability that can have its shares held by family and friends?

• A. Plc
• B. Co-Operatives
• C. Ltd
• D. Social Enterprise

Answer: (C)

Private limited companies are designed for close-knit ownership and limited liability. In this structure, shares are owned by a small group—often family and friends—and are not sold to the public. That combination matches the term Ltd, which stands for private limited company. The other forms don’t fit as well: a public limited company (Plc) can sell shares to the general public, which contradicts the idea of a private company; a co-operative is owned by its members who typically have equal voting rights and a different share structure; a social enterprise centers on a social or environmental mission and can adopt various legal forms, not specifically private with private shareholding.

Private limited companies are designed for close-knit ownership and limited liability. In this structure, shares are owned by a small group—often family and friends—and are not sold to the public. That combination matches the term Ltd, which stands for private limited company.

The other forms don’t fit as well: a public limited company (Plc) can sell shares to the general public, which contradicts the idea of a private company; a co-operative is owned by its members who typically have equal voting rights and a different share structure; a social enterprise centers on a social or environmental mission and can adopt various legal forms, not specifically private with private shareholding.