Question 55
Business UnitsWhich of the following statements is not true of a private limited company?
- A.The minimum number of shareholders is two
- B.Its shares are freely transferable
- C.There is a limit to the number of shareholders
- D.It is a separate legal entity
- E.It is a registered business
Show the answer and explanation
Answer: B (Its shares are freely transferable)
Explanation
A private company restricts the transfer of its shares; free transfer belongs to public companies.