Question 60
Business UnitsWhich of the following is a characteristic of a private company?
- A.There is no limit to the number of members
- B.Shares and debentures are freely offered to the public
- C.Shares are not dealt in on the stock exchange
- D.It cannot commence trading on receipt of certificate of incorporation
- E.There is no statutory general meeting
Show the answer and explanation
Answer: C (Shares are not dealt in on the stock exchange)
Explanation
A private company cannot offer shares to the public, so its shares are not quoted on the stock exchange.